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Seanad Éireann debate -
Wednesday, 30 Jun 1926

Vol. 7 No. 10

PRIVATE BUSINESS. - HOUSING BILL, 1926—SECOND STAGE.

Question proposed—"That this Bill be now read a second time."

I must support the Second Reading of this Bill, but I do so with regret. I support it because it proposes to extend the Act of 1925, and to continue the arrangements that were made with regard to providing subsidies for the building of houses. My regret is this, that the Bill does not go as far as I would like it to go. On former occasions I think I said that if this housing question is to be dealt with in a satisfactory manner it should not be dealt with by Bills being introduced year after year, such as this, but that this question, which is a burning one, will have to be dealt with on a national basis. From the little experience I have had in dealing with this question of housing, and I have taken quite an interest in it, I think it is a question which will not be solved until such time as a national housing authority is set up by the State to deal with the whole problem regarding the provision of houses. I must say that the President, to his credit, from my knowledge of him for a number of years, is sincerely anxious to settle this question of housing, and he has done a man's part in that direction. I pay him that tribute whole-heartedly, for I have personal knowledge of what he has done to help in the provision of houses in the city. During the debate on the Second Reading the President made statements with regard to the whole question of housing, and the number of houses erected under the previous Housing Acts. I respectfully suggest that the number of houses that have been erected are not nearly sufficient to meet the requirements. The President told us that under the 1924 and 1925 Acts 1,361 houses were erected or under consideration in Dublin City area. I think it is admitted that the population of Dublin has been growing for a number of years, but, apart from that, to meet the normal demand for new houses by young people setting up homes the number of houses built is altogether insufficient, much less to meet the tremendous need there is for the housing of people who are living in insanitary slums. I do not think, much as has been done under previous Acts, in addition to what is proposed under this Bill, that it is grappling with the situation in the proper way.

From my knowledge, and I think I know the city of Dublin as well as most people, I have come to the definite conclusion that the whole of the social evils which we suffer from in the city are due to the bad housing conditions. It is the experience of any person who has had knowledge of people living in the slums, that when you provide them with decent houses their whole outlook is changed. People brought from the dirtiest of slums and given decent houses turn out to be good citizens. I think that statement will bear examination, and that investigation will prove that if people living in insanitary slums, through no fault of their own, are given a chance they will become good citizens. That has been proved on many occasions. They have made every sacrifice in their power to get themselves and their families out of the slums. I regret the Bill does not go further to meet the needs of these people.

I would like to deal with other aspects of the question. During the Second Reading debate in the Dáil the President made statements with regard to building costs. He stated that the cost of building houses in Dublin has been coming down, and that we have arrived at the stage that five roomed houses are costing anything from £500 to £535 to erect. There is one particular matter in connection with that type of house to which I will call attention. The cost of building a five roomed house has been brought down to a figure between £500 and £535—I am speaking now altogether in connection with the houses that have been built by the local authorities, because these are the houses that will be inhabited by the people I represent, the working classes. The houses that are being built by speculators and private people will not in the main be inhabited by working-class people.

The houses that are being erected in Dublin are being let on a sale purchase scheme, at rents that are beyond the means of the ordinary working man. At Croydon Park area the ordinary working-class family are asked to pay a rent of 17/1 per week for these houses. I say with all respect that with the wages that are being paid, and with the continual demand for a reduction of the wages of the working-class people, you are by this high rent putting a tax on them that they are not able to bear. We have Commissioners in charge of the Corporation affairs at present demanding that the lowest paid workers shall make a further sacrifice of 6/- per week. They have already sacrificed 13/- a week of their wages, and it is now demanded of them to make a further sacrifice of 6/- a week. At the same time these people who are demanding a reduction in the wages of these men are insisting on their paying a rent for their houses of 17/1 a week. Fixing rents is one thing, but getting payment is another, and I am afraid rents are being asked in this case that cannot be paid. A man can do no more than his best. I know from personal knowledge that large numbers of people inhabiting houses built by the Dublin municipal authorities in recent years are making tremendous sacrifices in order to keep decent homes for their families. These people have no say in the type of house that is being erected.

There are differences of opinion with regard to the type of houses to be erected amongst the operatives in the building trade, and I speak with authority on their behalf. I am a building operative myself— a building operative in the building trade in Dublin. I say that the type of houses put up now and which the working people are forced by circumstances to enter into a sale purchase scheme to buy, is not the type of houses that these people should be asked to go in for. We are putting our opinions against the opinions of other people. We are entitled to offer an opinion, and that opinion is, that the cost of maintenance of these houses will be altogether out of keeping with what the tenants can afford to pay. It is a notorious fact that on the first section of the Marino houses, that is, houses that have been only inhabited within the last twelve months, the cost of maintenance has been altogether extremely high, and it bears out what I have been saying with regard to the type of houses that are being built. Further than that, I want to say that the large amount of money that has been spent in the erection of these houses of the new type of construction has meant practically the elimination of the skilled trades from the building of houses. The saving has not meant a very great difference in the cost of erection. But it has meant a most important difference from the point of view of the country as a whole. That is, that practically 60 per cent. of the amount of money that is being spent on the erection of these houses is being sent out of the country for the purpose of purchasing foreign material.

Heretofore, when the old type of brick house was being constructed, we used to estimate that on the average the cost of material and labour used to run to about 50 per cent. for each. It varied with the different type of house, but on the average it worked out at 50 per cent. for wages and 50 per cent. for materials. Now in the new type of house, where the skilled trades are being practically eliminated, and where the houses are built mostly of mass concrete, most of the money spent on these houses is being spent on material, and I regret to say most of the money is being spent on foreign material. I think that that is a very mistaken policy from the point of view of economics. I do not understand anything about finance. The President is well up in finance. I am satisfied that if he examines the whole question he will agree that it is false economy to be sending all this money out of the country. The new house costs a few pounds less. You have the materials for the old type of houses on hands. It is manufactured in the country and gives employment in the country and produces a better type of house. I have yet to meet the man who could afford to build a house for himself without the subsidy who would build a house of concrete. I have yet to meet the man who had a free choice who would not prefer to build himself a house on the old style, built of brick or stone and roofed with slate, than to adopt the new ideas. I pay considerable regard to this, particularly because of the tremendous amount of money that is being sent out of the country. I tried to estimate the cost of the 1,361 houses constructed or under construction by the Dublin Commissioners under the 1924 and the 1925 Acts. Taking it at between £500 and £535 and putting the figure at, say, £520 per house, the cost of materials used in those houses comes close to half a million of money. The great bulk of that money is at present being sent out of the country. I think that is a great mistake, and I take this opportunity of referring to it and calling attention to it.

The President in dealing with this question in the Dáil referred to the failure to take advantage of the section in the Bill with regard to the establishment of public utility societies. It is regrettable that the people did not take advantage of the section. But there are reasons why they did not. I was in some way connected with the starting of one public utility society. That society entered into arrangements with the Dublin Commissioners for the erection of a number of houses. We found that the great difficulty with regard to the establishment of these public utility societies was the fact that any person who joins a public utility society for the purpose of erecting a house, joins it for the purpose of getting a house erected for himself. When we come down to the actual people who require houses, we will see that the number of people who have sufficient cash to enable them to do that is very small. That in itself is the real cause of the failure of the people to take advantage of public utility societies. The main difficulty is with regard to raising money. The number of working class families in Dublin who can afford to put down a large amount of money for the erection of houses is extremely limited. They cannot get accommodation in any way. I interested myself with regard to a few people who were anxious to do the right thing, and to take advantage of the Housing Act to build houses for themselves—men in the building trade. I went on one occasion to the bank and two people who had leases of their own houses offered to go security for £200 for a man in constant employment who was prepared to build a house for himself. The bank would not do any business and I think that is the experience of anybody who has approached a bank with such a proposal. They have been turned down. The banks will not touch them. I think it is a regrettable state of affairs that the banks will not come to the assistance of people anxious to build houses. Because we want to get houses built, and every little would help.

It is a great pity there is not more public spirit amongst the people in regard to building houses. The failure with regard to the housing problem in this city has been the failure of the large employers of labour to give their contributions to the solving of the question. It is unfair when everybody else has been contributing that the employers would not contribute. The ratepayers of Dublin are all contributing to the providing of houses at 17/1 a week for tenants, the economic rent of which would be nearer 37/1 a week. That really means that the ratepayers have to subsidise the employers of Dublin, because if the economic rent of these houses were paid, the wages would have to be considerably increased. I do feel called on to direct attention to this failure on the part of the large employers of labour in Dublin to provide houses for their employees. An example was set by an English company who came over to this country to erect a factory, twelve months ago. Immediately after they came here they found that they could not get decent houses not of concrete for their workers. They built 70 or 80 houses just a little above where I live. These houses are a credit to the firm that erected them. They are in every way fit to be happy homes for the people who live in them. I wish Irish employers would take a leaf out of the book of this firm, take their example and thus help to provide decent houses for their working people.

I am rather anxious to appeal to the President on one small point in connection with the housing question, in which I know he has a very deep interest. The point that I want to put to him is: would it be possible to give with these houses a little more land? I recently had occasion to pass by two or three of the colonies of houses that have been built around Dublin. To me it looks very like repeating Dublin a half mile outside the city boundary. There I saw streets adjoining one another instead of being, as I take it they are supposed to be, model suburbs. When all is said and done a little more land would not cost so much more. There is plenty of land around Dublin, and a half an acre extra would not add much to the expenditure, divided amongst a number of houses. The expenditure would be well repaid not alone from the point of view of comfort, but from the hygienic point of view. I would appeal to the President, who I know has very strong views on this matter, and who I know is anxious to forward the work of better housing, to see if something cannot be done to give the tenants of the new houses that are to be built under this Bill a little more room.

With regard to the first point raised by Senator Farren, that the housing question was a burning question, I have only to say that the burning of houses is a thing that I hope has departed from the country permanently and for ever. With regard to the second point he mentioned, that 1,361 houses had been built under the 1924 and 1925 Acts, that is the number of houses that has been built by the City Commissioners. In addition to that, something like 350 are being provided by private individuals, public utility societies, and by the speculative builder. I had hoped that the Senator would give us some information regarding the material from which the speculative builder has constructed his houses, whether it is from homemade materials or otherwise. That question is bound up very much with the same question that Senator Guinness has raised about providing extra land with the houses. The housing problem may be summed up in a single word—finance. It is a question of money, because the land around the suburbs in Dublin varies in price from £200 to £300 per acre. Within the city it is much dearer. In one important borough in the country I understand that something like £400 has been paid per acre recently. Twenty years ago it was not considered bad policy to put 30 houses to the acre. Forty or fifty years ago, in the City of Dublin, as many as 56 houses to the acre were constructed in the City of Dublin. It went down to 40, and there was considerable criticism of the Corporation of Dublin in connection with the housing scheme some twelve years ago, when they proposed to put 40 houses to the acre. At the present moment very few schemes are in course of construction with a larger number than 20 houses to the acre.

It will be seen at once that the smaller the number the higher the cost. The costs after all are, as I have said, the main consideration for anybody who is trying to do something in connection with this question. I think that Senator Farren, when he was making a case against the employers in Dublin, ought to have done justice at least to some of those who have made a very big contribution towards the housing question. He realises, I think, that the Guinness firm have certainly made a very considerable contribution towards it. I think that the condition of housing in Dublin would be almost indescribable if it were not for the efforts of that firm and quite a number of other concerns. I have not got a list of all of them at hand, but they are all set out in detail in the Local Government Housing Committee's Departmental Report of 1913. Speaking from memory I should say that something like three or four thousand dwellings were provided by those firms. There is a difficulty in the case of the Guinness firm because they disposed of quite a number of their houses to the Artisans' Dwellings Company. Lord Iveagh carried out a very big improvement scheme down in Bride's Alley, and in addition Lord Iveagh and Lord Ardilaun were very large subscribers towards the foundation of the Artisans' Dwellings Company. With regard to what Senator Farren said about the use of foreign materials, that, too, is a question of costs. I would much prefer to see Irish materials used in the construction of houses. I do not know that it would be impossible for a good many of the trade unions concerned with the building trade to endeavour to form a public utility society. If they have a better method of construction, a better and more suitable lay-out of house, there is no earthly reason why they should not give us the benefit of their experience. They have very considerable experience in the matter, and the Dublin building trade operatives have a very good tradition in building. Our public buildings in Dublin are a testimony to their handicraft, but I am not satisfied that economy in house construction is yet in sight. Senator Farren himself would admit at once that it is unlikely that a five-roomed house—a house which he would recommend himself to be constructed, a house built with brick and mortar and using as far as possible native material and constructed by expert operatives —would be produced at much under £560.

I admit that.

Having got that figure, you then have the costs incidental to such a house, such as rates, cost of collection of rents and so on, all of which go to make an uneconomic rental. The Senator, I think, will admit at any rate that the operatives have been paid their price, and that is really what they are being called upon to pay in rent—what they have been paid themselves. In other words, having produced an article, they are themselves asked for its price and they say it is beyond them. The Senator did the Commissioners justice in one part of his statement by saying that it was a purchase scheme, but then on two occasions during his statement he said that the rent charged was 17/1. There is something more than rent in that. The houses will be their own after a period of 40 years. Therefore, taking into consideration all the circumstances, (1) the great increase in the cost of materials, (2) the great increase in labour costs, (3) the great increase in the interest charged on money, which has taken place since the war—when all those costs are piled on to that particular instalment charge we must admit that a housing solution, if it be reached, must be expensive, and that the costs which are inseparable from the making up of that considerable amount of 17/1 must be met by somebody. We have endeavoured in this Bill, and in the preceding Bills, to share the cost and to spread the burden over quite a number. If we have not reached a solution of the question, at any rate the contribution which has been made towards the provision of houses has been very considerable.

Senator Farren mentioned the banks and said that they were unwilling to advance money. The banks, as I understand them, are unwilling to advance money on anything that will not lend itself to being cashed, because after all the banks are only trustees for whatever money they have. If there is a hesitancy on the part of the banks in respect to advancing money for housing, there must be some reason for it. What are the reasons? We can quite understand the difficulty a bank would be in in the case of a family in occupation of a small house not meeting its engagements in respect to the sum advanced for its construction. You might in addition have interest on arrears. In a case like that how is the bank going "to cash in" that house for the money that it had advanced, money that it held in trust for somebody else and which it must get back? That is the real problem with regard to the banks. If it were easier to get possession of houses and to get buyers for them when put up for sale, then, I think, the banks would lend money more readily. We must all admit that the trend is rather towards legislation to secure a person in his house, to make it difficult to have him evicted and to make it difficult for any person to get into the house in spite of him. So long as those difficulties are there, and I presume people ask for these things in good faith, believing that they are necessary, we cannot expect the banks to lend money on something which they cannot get at, and which they cannot command. The housing problem requires the co-operation and assistance of every person. Every single person who puts up a house in this country during the next twenty years, or who has put up a house during the last forty years, is a public benefactor.

Question—"That the Bill be read a Second Time"—put and agreed to.
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