asked the Minister for Local Government if he will make a statement on the prospects for the house building industry for the remainder of this year.
26.
Ceisteanna—Questions. Oral Answers. - Building and Construction Industry.
25.
asked the Minister for Local Government if he has received representations from the housing sector of the building industry regarding a possible falloff in the output of new houses over the next 12 months; and if he will make a statement on the matter.
27.
asked the Minister for Local Government if he has received representations regarding the shortage of house loans; and if he will make a statement on the matter.
28.
asked the Minister for Local Government the Government targets for housing output in the public and in the private sectors this year; if he considers that these targets will be achieved; and if he will make a statement on the matter.
29.
asked the Minister for Local Government if he will take immediate steps to avoid large-scale unemployment in the construction industry and allied trades.
30.
asked the Minister for Local Government if he is aware of recent statements to the effect that unemployment will occur in the house building industry in coming months; and the steps he intends to take to prevent this situation arising.
32.
asked the Minister for Local Government if he proposes to take any action to improve the demand for private houses in view of the statement by the Construction Industry Federation that up to 4,000 houses are now vacant; and if he has taken any decision to increase the limit on local authority loans to assist further the building societies to meet the demands for homes.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 25 to 30, inclusive, and 32 together.
As I indicated in my reply to a parliamentary question, No. 4 of the 27th June, the Government have taken steps to ensure financial support for a high level of activity under the public capital programme by providing £281.6 million in the programme for the nine months period ending 31st December, 1974.
Approximately £179 million of the provision for the period to 31st December next will generate work for the construction industry. This would represent an investment of £240 million in a full year and compares with expenditure on corresponding work of £205 million last year and £161 million in 1972-73. I am satisfied that the substantial financial support for the building industry in the programme has contributed to the continuing high level of employment in the private sector of the building and construction industry.
The programme includes £60.6 million for housing in the current nine months period which is equivalent to £78.8 million for a full year—an increase of £10.6 million over last year and £32.6 million over that provided in 1972-73. Furthermore, the subsidy introduced last year to encourage a higher level of investment in building societies is being continued.
In so far as the local authorities house purchase loans scheme is concerned, while I have no immediate proposals to increase the limits, I am keeping the matter under continuous review in the light of increases in house prices and changes in wages and salaries of persons for whom the scheme is intended.
The Government's target figure for housing output for the 12 months period ending 31st March, 1975 is 25,000 dwellings. I expect local authority housing output in that period to be of the order of 7,250 dwellings, the balance to be provided by the private sector.
At a meeting which I had recently with representatives of the Construction Industry Federation, they outlined their views on the present situation regarding house purchase finance. I noted the federation's representations and I am keeping the matter under constant review.
Is the Minister aware that statements are being issued by the federation spokesman that there is a threat to employment in the construction industry, particularly in the private housebuilding sector, that there are great fears that after the summer holiday period is concluded there will be many thousands of building employees made redundant? If the Minister is aware of that, is he saying that he does not agree that there is a possibility of unemployment on any scale in the building industry in the next few months?
What I am saying is that, while I am aware that there are people, who should know better, making statements similar to the statements they made last year to the effect there was going to be widespread unemployment in the building construction industry, arrangements will be made, if necessary, to provide additional finance. This was done last year when the occasion arose and I can assure the Deputy and the House there will be no question of the building industry not getting the necessary finances. It is a matter of interest that there are more employed in the building industry now than there were last year and, not alone more, but considerably more than last year.
The Minister said 25,000 local authority houses would be provided. Can he say if that is a higher figure than in previous years?
Very substantially higher than in previous years.
I understood the Minister to state that there was sufficient money available at the moment for the achievement of the target of 25,000 houses. Is that correct?
What I said was there will be sufficient money made available as between the money which has already been made available and, if extra money is required, the extra money that will be made available.
Is the Minister satisfied there is sufficient money there at the moment?
I am satisfied that at the present time the building industry is employing more than it did in any other year.
Is the Minister aware that certain builders' providers are stockpiling this very day?
I am also aware of the fact that builders' providers were complaining six months ago they could not get the stuff and now they are complaining, according to the Deputy, that they cannot sell it. Knowing there would be a boom, they stocked up in preparation for it. I hope they will reap their reward.
Can the Minister state when he will make more money available.
If required, the money will be available.
The Minister is satisfied there is enough today.
Yes.
Would the Minister take steps to control the speculators who have moved into this field, putting prices sky high? Did the Minister read The Irish Times which reported that an ex-Minister made £86,000 on sites in Galway?
Does the Deputy believe everything he reads in the newspapers?
Speculator.
The Minister told us money is made available and he said people, who should know better, made certain statements, but did he take note of the fact that a Mr. Patrick Kavanagh, who does know better——
Names should not be mentioned. It is not proper.
——made a statement in the Sunday papers in which he said there was no demand for building materials?
I do not know Mr. Patrick Kavanagh and I do not read the Sunday papers.
He is in a position to make such a statement. Does the Minister agree that something he did, or did not do, has upset the delicate balance and, because of that, demand has fallen off?
In fact, there is no remedial action needed. The houses are being built and the finance is there for any Deputy, including Deputy Power, to see. The houses are being built throughout the country.
But they are vacant.
The Deputy cannot have it both ways.
Does the Minister not consider that the fact that materials are not being bought should be construed by him as advance warning that a very serious situation is about to develop in the building industry?
What I would take from that is that the builders' providers very wisely stocked up and, despite what Deputy Power says Mr. Kavanagh said, the builders' providers do not expect to sell their stocks a week after taking in supplies.
May I ask the Minister to try to emerge from the forest of statistics and his grandlose promise about money being available and apply himself to the realities of the situation, as indicated by one of those involved in the construction industry, and may I refer, in particular, to a statement he made on the radio today between 1.30 p.m. and 2 p.m. —he is the director general of the Construction Industry Federation— that between now and the summer holidays there is a likelihood of up to 5,000 workers in the building industry being laid off unless there is an immediate injection of adequate capital into the building industry? I have no axe to grind. I was listening to a man whose interpretation of the situation I am entitled to take into account.
I would ask the former Taoiseach to take into consideration the fact that someone who is Minister for Local Government is in a responsible position and should be believed far more quickly than someone who, this time last year, went on the radio and said almost the same thing. I have pointed out to Deputy Lynch that there were 7,000 more houses built last year than were ever built under his Government.
What is the equation of starts compared with the corresponding period last year?
If the Ceann Comhairle will allow me, I think it is only fair that I should now say something that should not have to be said because there are at least two people over there on the Opposition benches who should know the answer. Obviously, they do not want it to come out. Deputy Lynch's query shows that he either does not know or does not want to know. Every year the average was 3,500 to 4,000 houses. Deputy Lynch knows this well. In 1973, because of the very good arrangement by his Government, that there would have to be a certificate of value for any house above a certain figure, there were 10,000 starts in the first month of the year. Deputy Lynch knows that and he also knows that people, including the Central Bank, stated there was a 60 per cent drop in the number of starts. They know this was so. Six thousand of these were by people who were jumping the gun. Deputy Molloy knows that because he was Minister for Local Government at the time. These Opposition tactics are just so much propaganda.
If in one or two years time we reach the figure the Minister says, we will all be very happy.
There were 25,000 last year and the Opposition were disappointed. They will get those figures again until they are sick of them.