In moving the Second Reading of this Housing Bill I believe it is unnecessary to dwell at any great length on the urgent necessity of such a measure. There is no matter of the many important matters calling for immediate attention that is to-day more pressing than the provision of proper housing accommodation for the many thousands of our people who are improperly housed. Housing conditions in our cities and towns have been for many years a subject of reproach to our administrations, central and local. Personally I have regarded it as a stain on our national honour that the housing conditions of our poorer classes have been permitted to increase in wretchedness instead of improving during the last ten years.
The aim of this Bill now moved by this Government is to end the housing problem. We hope to provide inside a period of ten years adequate and sanitary houses for all our people at present improperly housed. It is known to everyone in the country that housing conditions of the poorer classes of our population have been and continue to be unsatisfactory. It is, I believe, reasonable to expect that the housing problem, unless tackled in a resolute way at once, will become more acute than ever in the near future as a result of the cessation of emigration.
The Minister for Finance in his Budget speech of this year announced that a sum of not less than £5,000,000 would be provided immediately as a beginning to assist local authorities in eradicating the housing evil. The Bill now before us gives effect to the promises then made and sets out in detail how the Government proposes to provide assistance to local authorities and private persons for the building of suitable dwellings. The Budget of this year imposed heavy financial burdens on our people, but even those upon whom those burdens pressed most heavily will, I think, find considerable consolation for their sacrifices if they feel assured that one result of the additional burdens they are being asked to bear will be the disappearance of the slum evil in our cities and towns and the insanitary dwellings in our rural areas.
It is unnecessary to remind citizens of Dublin of what the housing conditions of our poorer classes here are. It must be known to them that more than one-fourth of the total population of our capital is housed in one-roomed tenements. Attention has often been called in this House and in the press to the abominable housing conditions in Dublin, but I think it will scarcely be denied that, proportionately speaking, housing conditions in Cork, Limerick and other cities and large towns in the country are equally bad. So deeply impressed is the Government with the urgency of this problem, and the necessity for tackling it in a resolute way, it has decided that, whatever the cost, the poor must be properly housed in town and country.
It has been reported to me that the financial terms offered to local authorities and private persons in this Bill have been criticised as over-generous. To those offering such criticism I would say that in my opinion it will pay the nation well to pay the price, whatever it may be, necessary to abolish the slums and the insanitary dwellings and to do this in as short a time as possible. The effect on the Nation's health, moral and physical, of providing adequate healthy dwellings for all our people is incalculable. Much of the money we are now obliged to spend on public health services, on the eradication of tuberculosis, on public hospitals, on mental homes and sanatoria, will, I feel assured, be available for other useful purposes as soon as we have ended, once and for all, the abominable housing conditions which have been our shame for too long.
In speaking of the insanitary housing conditions as being a cause of shame to us may I say that it is not my wish to have it understood that the late Free State Government is to be blamed for these conditions? I have said it in this House and elsewhere and I would like to repeat that the housing conditions in Dublin and in the country were disgraceful when the late administration took office. These abominable housing conditions existed during the period of the British administration. They arose because of British administration and from hereditary and economic causes arising out of foreign domination. The British administration not alone did not make an adequate attempt to provide sanitary dwellings for our people but in my own experience they hampered the earnest efforts that were made, at least by the Dublin Corporation in my time, to meet the housing needs of the citizens of Dublin. The charge I would levy against the late administration on the subject of housing is, that while they passed several Housing Bills, good enough each and every one of them in their way, none of these Bills made a real attempt to tackle the slum evil.
In the Free State there are about 600,000 inhabited dwellings. During the past ten years, under several schemes, over 26,000 houses have been provided by local authorities, public utility societies and private persons. In respect of these houses grants amounting to about £2,500,000 have been made. These houses were provided as follows by the various agencies of house supply:—
|
Local Authorities |
9,100 |
|
Public Utility Societies |
1,500 |
|
Private Persons |
15,400 |
Of these 13,700 are situate in urban areas and 12,300 in rural areas. Notwithstanding the provision of this considerable number of houses it is estimated that more than 60,000 houses more are required to meet immediate needs (including the replacement of existing insanitary dwellings).
I do not wish to undervalue the housing achievements of the last administration. It is undeniable that high building costs militated to a great extent against housing progress during a great part of the last decade and this and other economic factors acted as a deterrent to those faced with the housing problem. I would like to point out, however, that the rate of house-building of the last ten years would never be sufficient to solve our housing problem. House production at the average rate of 2,600 houses per annum—that is the rate of the last ten years—provides only for replacements of our existing 600,000 houses at a rate of less than one half of one per cent. per annum. It is questionable whether this rate of progress would meet normal depreciation, but it is certain that it would never make any inroads on the enormous existing housing needs. It is evident that, notwithstanding the provision of 26,000 houses in the past ten years, the slums problem has become more acute than ever during that period and that a much greater rate of production must be reached before we can begin to overtake the housing arrears with which we are at present faced.
It is true that it is only comparatively recently that building costs have come down to a figure at which houses could be built for the very uneconomic classes without saddling State and local funds with enormous losses. Even now building costs are high, but it is the considered view of the Government that, notwithstanding this, further delay in dealing with the slums cannot be permitted. Every year the problem becomes more acute and, unless it is to be permitted to engulf our whole national life, it must be attacked at once in a spirited and determined way. A beginning must be made with the most needy cases for persons living in slums and for every new house provided at least one insanitary house must be removed.
The Housing Act passed last year aimed mainly at slum clearance. The provisions of that Act in regard to procedure for slum clearance schemes of urban local authorities, and for dealing generally with unhealthy houses, provide most useful machinery, which it is intended to bring into use in the contemplated housing programme. The financial provisions of that Act, however, were not such as would enable local authorities to deal in any effective way with the slums problem. Local authorities, operating under that Act, could not let the houses at rents low enough to enable them to accommodate the really needy classes, and if substantial schemes were undertaken the charge on the local rates would be prohibitive in most cases. With such financial provisions it is clear that the desired result, the eradication of the slums, could not be achieved.
Emerging out of the mass of factors bearing on the housing and slums problems is the salient fact that these problems are mainly financial. No amount of legislation, no quantities of plans and specifications can in themselves achieve anything if the money is not available to buy the bricks and mortar, and pay the labour. The financial side of the problem is nevertheless briefly stated. We have on the one hand the prospective tenant whose ability to pay is limited, and on the other hand the agencies of house supply unable to bring down costs to such a figure as will enable the economic rent to come within the limited paying ability of the prospective tenant. It is clear that the difference between the paying ability of the tenant and the economic rent must be bridged by public moneys, and that the loss entailed in this must be borne between the Central and local funds. Of course every human effort must be made to reduce the disparity between the paying ability of the tenant and the economic rent, but house production at the highest rate possible must proceed in the meantime.
I believe that the Housing Bill to which I am asking this House to give a Second Reading offers the key to the solution of the entire problem in the shortest time possible. It aims at bringing into play all agencies of house supply to the greatest possible degree of effectiveness and the financial provisions of the Bill are framed to enable the most needy classes in the community to be dealt with at once.
Securing the greatest rate of progress that is physically possible, it is believed that it will take almost ten years to wipe out the existing arrears in housing and restore a position in which normal activity to provide for replacements will prevent a recurrence of the problem. The Government has no intention of spending as much as one penny unnecessarily in carrying out this programme and from the outset, concurrently with the building of houses to meet the needs of the most urgent cases, work will be carried out in checking existing surveys of needs, investigating the financial circumstances of those requiring houses, pursuing efforts to effect economies in construction and reduction of building costs generally and examining the various other aspects of the problem.
It is expected that under the present Bill over one-fourth of the total estimated need will be provided within the next three years and in the light of the experience gained during that period proposals to deal with the balance of the problem will be framed. It is the intention of the Government that building work will be continuous until the total housing demands are fully satisfied and every insanitary house in the State has been removed.
In urban areas the main source of supply will be the local authority operating under the Housing of the Working Classes Acts. Provision is included in Section 22 of the Bill for shortening procedure in connection with slum clearance schemes and the compulsory acquisition of land, but otherwise the existing machinery of the Housing of the Working Classes Acts as amended last year will remain unaltered. The financial provisions of the Bill are framed so as to enable these local bodies to undertake at once comprehensive schemes to clear out all slums and provide their total housing needs without putting an undue charge on, the rates. That is explained in Section 6 (1). For slum clearance schemes the State will pay up to two-thirds of the annual charges on loans. That is a heavy charge, but we think it is necessary. This will enable a house, costing £300, of which the economic weekly rent (inclusive of rates) would be about ten shillings, to be let at a weekly rent of say three shillings, inclusive of rates, without a greater loss to the local authority than £5 per annum. In the larger areas where costs will be higher a house costing £400 of which the economic inclusive weekly rent would be about fourteen shillings could be let at an inclusive weekly rent of, say, five shillings with an annual loss to the local authority of in or about £6.
The Government are prepared to make the maximum contribution permissible under the Bill so long as they are satisfied that the houses are let to the most needy applicants and that the rents charged are not unnecessarily low in any case. Matters of that kind will require strict supervision, but we propose to make all the provision necessary for such strict examination in every case. Local authorities must, therefore, exercise the greatest care in the fixing of rents and the selection of tenants and the tenants must be selected with strict regard to income of family, size of family and nature of existing accommodation. The payment of subsidy will be conditional on these matters being carefully attended to by each local authority and if any case be found in which the spirit of the Bill is not honoured I will not hesitate to stop the subsidy in that case.
It may not be out of place if I throw out a hint about building costs at this point. It is proposed to take power in the Bill (Section 6 (4)) to fix maximum costs over which subsidy will not be paid, and any attempt to increase costs will not be tolerated. There are other provisions included in the Bill (Sections 15 and 16) to cope with any emergency of this kind and these I will deal with later.
To return to the financial provisions of the Bill, so far as urban local authorities are concerned, it will be observed that by Section 5 (1), provision is made for the payment of grants, up to 60 per cent. of the cost, for the acquisition and renovation of existing houses. This is a point that should interest Dublin in particular. This provision will be applicable particularly to the larger areas, where building costs of new houses are high and there is a class that will be unable to pay even the low inclusive rent at which new houses in these areas can be let. The existing houses when renovated are to be managed by philanthropic societies or similar bodies of persons, and the financial assistance now to be made available will enable the provision of good sanitary dwelling accommodation for this class at inclusive rents averaging between 2s 6d. and 3s. weekly. Provision on these lines was included in the 1931 Act, but the amount of the grant provided in that Act would not enable the rents to be fixed low enough, and local authorities were not permitted to borrow for the purpose.
I would very specially like to call the attention of philanthropic societies and charitable organisations in Dublin to that section of the Bill, and to call their attention to the generous grants that are now provided, so that an effort may be made, even outside local authorities, to provide proper accommodation for the very poor and very uneconomic classes it is intended to deal with.
For the provision of new houses under the Housing of the Working Classes Acts for the accommodation of persons, not displaced from insanitary houses, but at present living in over-crowded or otherwise unsuitable houses, the State will pay up to one-third of the loan charges. This will be found in Section 6 (1) (ii). This subsidy will enable in the smaller areas a house costing £350 of which the economic inclusive weekly rent would be about 11s. 6d. to be let at an inclusive rent, of say, 7s. 6d. with a loss of about £3 per annum to the local authority, and in the larger areas a house costing £450, of which the economic inclusive weekly rent would be about 16s. to be let at an inclusive weekly rent of 10s. with a loss of about £5 10s. per annum to the local authority. Here again I may say local authorities will be required to make the most careful selection of tenants to ensure that the houses are let only to those tenants who most need them, and who cannot pay a higher rent.
In order to bring into play the activities of public utility societies to assist urban local authorities in the provision of houses for the latter classes it is proposed in Sections 5 (1) and 8 of the Bill to empower local authorities to join with the State in making a combined grant of one-third of the cost of houses subject to a maximum combined grant of £150 per house to be borne, £100 by the State and £50 by the local authority, on the condition that houses so provided will be let on monthly or lesser tenancies. This provision is especially included to enable public utility societies to act as a subsidiary of the local authority. In order to ensure that these societies operate for the housing of persons who normally would have to be housed by the local authority a maximum floor area of 750 sq. feet is prescribed in the Bill for houses to be built by them. This approximates to the ordinary working-class houses. In addition to the combined grant State loans will be made to these societies. It is hoped that in areas where housing needs are great the local authorities will endeavour to bring societies into existence to co-operate with them under this special provision, in the building of houses. This will leave local authorities more free to concentrate on slum clearance and, as well, will enable local authorities to cut their losses in the provision of their housing needs since every house provided by these societies will relieve the local authority concerned of the annual loss which the rates would have to bear if the house had been provided by the local authority.
It is also intended to provide for the urban classes who could pay a good rent, but are at present unable to get houses to rent. The provisions Included in Section 5 (1) (b) of the Bill will enable these classes with the aid of grants under the Bill and loans under the Small Dwellings Acquisition Acts to provide houses for themselves. In this connection the Bill provides under Section 22 (3) for the payment of larger instalments of loans under the Small Dwellings Acts during the progress of building works. This provision will enable a person with little capital but in a position to pay the loan charges and other outgoings to provide a house for himself. These items in respect of a house costing £500 on a leased site should not exceed more than one pound per week at the highest point. The grants will also be available under Section 5 to speculative builders and public utility societies for the provision of houses which, when provided, can be rented by or, if desired, purchased by intending residents with the aid of loans under the Small Dwellings Acquisition Acts. The grants at the outset will be £70 per house for houses completed before the 1st April next, and I am going to ask the House to extend that to the 1st June; £60 for houses completed in the following year and £50 for houses completed in the succeeding year. It is hoped that by so grading the grants the commencement of building work will be considerably expedited.
In rural areas to enable local authorities to provide labourers cottages it is proposed in Section 6 (1) (b) of the Bill that the State will pay 60% of the annual charges on loans borrowed by rural local authorities for the purpose. This provision will enable the letting of labourers cottages at inclusive rents averaging 2/- weekly without imposing undue charges on the local rates and so that the loss to the rates may be more evenly divided it is proposed in Section 21 of the Bill to make the county health district the area of charge instead of, as at present, the rural district. Provision is also made by Section 19 of the Bill for shortening considerably the present procedure for rural local authorities operating under the Labourers Acts. An endeavour is being made to bring the law in regard to the Labourers Acts in that particular matter into conformity with the Housing of the Working Classes Acts. As most Deputies are aware the existing procedure under the Labourers Acts is slow and cumbersome and it is now proposed to put the rural local authority in a position to go ahead with schemes with the same expedition as is now possible in urban areas under the improved machinery provided last year.
The grant system hitherto in force for private persons in rural areas has enabled the provision of over 10,000 houses but it is the opinion of the Government that the grants available were not large enough to enable small farmers and agricultural labourers to provide themselves with suitable housing accommodation. It is proposed, therefore, in Section 5 (1) (e) to continue the grants at the rate of £45 per house and to make available special grants for small farmers and agricultural labourers. For small farmers not exceeding £15 valuation and for agricultural labourers grants of £70 per house are to be provided, and for small farmers exceeding £15 but not exceeding £25 valuation, grants of £60 per house are to be provided. These grants relate to new houses but it is intended in rural areas to make available for small farmers not exceeding £25 valuation and for agricultural labourers grants not exceeding £40 per house for the reconstruction of houses at present in the occupation of these persons.
With a view to encouraging the formation of public utility societies in rural areas for the special purpose of advising and assisting small farmers and agricultural labourers in the building of houses, it is proposed in Section 5 (1) (f) and (g) to increase the grants of £70 and £60 for small farmers and agricultural labourers to £80 and £70 respectively for houses built through the medium of such societies for these persons. Under this provision it is hoped that many public spirited persons in rural areas will form public utility societies and encourage the really needy small farmers and agricultural labourers to avail of the grants.
That is a section to which one or two members of the House have called my attention and which they have criticised. I was encouraged to put this provision into the Bill because of the fact that I knew of one county where a Deputy of this House had interested himself in forming a public utility society and had succeeded in a couple of years through the agency of that society in building 83 houses. I thought that was excellent work but it was said to me that that would be dragging politics into the matter because this man naturally had to be associated with some Party. He happened to be a politician, a member of one of the Parties in this House. I will say that it was good political work, if you like, but it was excellent work and I said to the Deputies who criticised that proposition to me, "I do not care if every man in the House of every political Party takes up the work of forming public utility societies. They could not do better work whatever their political views may be." I would encourage every man in the House no matter what Party he may belong to to do the same as that Deputy to whom I referred. They would be doing good political work, if you like, but they would be doing excellent social work at the same time.
It will be observed that the grant system for private persons and public utility societies is to continue up to the 1st April, 1935. With the grants offered there is no excuse for anyone who should fail to take advantage of them in that period. When I state that about ten years will be required to supply all housing demands I do not anticipate that it will take anything like this for private persons, in a position to do so, to satisfy their needs and there will probably be no need to continue the grant system beyond the period prescribed in the Bill.
It is also proposed in Section 5 (1) (a) of the Bill to provide for the payment of grants of £45 per house in respect of houses begun under the Housing Acts, 1929-1930, as amended by the Housing (Miscellaneous Provisions) Act, 1931, but not completed in time to qualify for grants under those Acts.
In respect of the latter houses rates remission similar to that provided under the Housing Acts, 1929-1930 will be granted—(Section 9). So those who have not yet completed their houses under the older Act will be placed in no more disadvantageous position than those who had completed them earlier. In addition the new Bill provides for two-thirds remission for seven years in respect of all houses provided under the new Bill excepting houses provided by local authorities or by public utility societies in urban areas for letting under the special terms already referred to. In the case of houses reconstructed by small farmers and agricultural labourers in rural areas it is provided in the Bill that the valuation for rating purposes will not be increased for the first seven years after reconstruction. The general question of rates remission is one that has been most carefully considered by the Government. It is realised that there are objections to the principle of remission but, in all the circumstances, it has been decided to continue it on the reduced basis of two-thirds remission for seven years in respect of houses for which grants are made to persons and public utility societies under the Bill. It will be noted that this is the only assistance which local authorities are to be called upon to afford to these persons and societies except in the case of houses built for letting in urban areas by public utility societies, and local authorities are not asked to grant rates remission in respect of the latter houses.
Loans for local authorities schemes will be advanced from the Local Loans Fund for 35 years, repayable on the annuity system at rates of interest to be fixed from time to time by the Minister for Finance. It is hoped, however, that local authorities in a position to do so will raise loans in the open market so as to relieve the strain on the State.
With the foregoing very generous financial provisions the Government expect the full co-operation of all bodies and persons concerned with the housing problem, and of all persons engaged in or connected with building industries. As previously stated it is anticipated that tendencies towards increased prices will have to be coped with, and the Government is making provision for dealing with such emergencies. The Miscellaneous Provisions of the Bill include (Sections 15 and 16) power to the Minister to purchase, manufacture or promote the manufacture of building materials and appliances, and power to the Minister for Industry and Commerce, after public inquiry, to limit prices of building materials and appliances. These powers will be used to the fullest extent necessary to cope with any situation which may arise.
Section 20 of the Bill also provides for rural local authorities to acquire land for the purpose of leasing or selling building sites for the erection by private persons or public utility societies of cottages suitable for occupation by agricultural labourers. It is expected that this provision will enable sites to be provided for many agricultural labourers not in a position at present to secure suitable sites. By facilitating persons of this class to build their own houses with the aid of grants considerable saving will be secured by local authorities who, otherwise, would be called upon to provide cottages and plots for them under the Labourers Acts.
The Government feel confident that the local authorities, conscious of the urgent housing needs of their areas, will proceed to carry out substantial slum clearance and housing schemes with the greatest possible expedition. In any case where dilatoriness is displayed by a local authority in availing of the financial terms to be made available, the Minister is to be empowered by Section 17 of the Bill to act in place of the local authority.
It is the intention of the Government to set up a Housing Board to advise and assist the Minister in the exercise of his powers in relation to housing, and particularly in connection with the carrying out of the housing programme contemplated in the present Bill.
In the building of the houses it is expected that materials and appliances of Saorstát manufacture will be used as far as possible. From time to time lists of suitable materials and appliances will be published, and after the publication of such lists, bodies and persons building houses with the aid of State subsidies will be required to use the materials and appliances specified.
It is the aim of the Government to take full advantage of the housing drive to develop native industries in building materials and appliances. Substantial sums of the ratepayers' money will be sunk in the houses to be provided and a large proportion of these sums will not be recoverable in rents. If, however, native materials and appliances are used to the fullest extent possible in the building of the houses, most of the money will be put back in circulation immediately and the financial strain on the community generally will be greatly eased, while employment will, at the same time we hope, be greatly stimulated.
I much regret that it has not been found possible to introduce before now the long-promised Town Planning Bill. It is my earnest desire to have this Bill introduced as soon as possible. I have great hope that the Town Planning Bill may be ready for introduction without delay after the Recess. In the meantime, I would appeal to all local authorities about to plan housing schemes to give earnest consideration to the question of town planning and above all to provide for as many open spaces as possible and particularly space for playgrounds for our children.
In recommending this measure to the favourable consideration of the House may I take advantage of this opportunity to appeal to all classes of the community to give of their very best to assist the State to end the great and pressing evil of the slums? May I make a very special appeal to building operatives to make a very special effort to assist by all means at their disposal, the State and the local authorities to provide at the cheapest possible rate decent dwellings at reasonable rents for the working classes and especially for the very poor who are unable to pay what is called an economic rate? They should be in a special way interested in this problem. The lives of so many of their own class and even of their own children are at stake. By assisting to their fullest capacity in this truly Christian work they will be doing the best they can for themselves and for the nation.
