asked the Minister for Local Government if he will make a statement on the crisis at present affecting employment in the private housebuilding industry; and if he has any plans to alleviate it.
13.
Ceisteanna—Questions. Oral Answers. - Building Industry.
12.
asked the Minister for Local Government if he will take steps to alleviate the difficulties experienced by those employed in the private house building industry; and if he will make a statement in the matter.
With the permission of the Ceann Comhairle I propose to take Questions Nos. 12 and 13 together.
In the public capital programme for the current year the Government provided a record amount of finance in order to maintain a high level of activity in the house building industry. This record provision has been supplemented by further measures designed specifically to assist the private sector of the industry. An additional £9 million has been provided for local authority house purchase loans and negotiations were completed with the associated banks whereby standby credits totalling £11 million have been made available to the member societies of the Irish Building Societies' Association to enable them to expand their new loan approvals. Furthermore, to stimulate the flow of investment funds for housing to building societies, it has been decided to continue in operation until 31st December, 1974, the special temporary interest subsidy on the societies' shares and deposits.
Since the special borrowing facility for the societies has enabled them to achieve a reasonable level of loan approvals, their loan limits have been revised upwards and the quantitative restriction on the total value of loans for second-hand houses has been removed. These measures are indicative of the Government's continuing support and concern for the private house building programme.
The available indicators do not support the view that there is a crisis in the private sector of the building industry. The level of approvals to new house purchase loans and grants is substantially up on 1973.
Is the Minister aware that there have been large numbers of men made redundant in the building industry, particularly those employed in the private housebuilding sector?
I am aware that two firms, according to the newspaper reports yesterday, laid off substantial numbers of men. One firm is entirely affected by the failure of the parent company in Britain and the other firm admits that two of the factors causing the lay-off are (1) the adverse effect of the three-day week and everything else that applied to it in Britain; and (2) the large amount of land which they had bought up and on which they were paying interest. I do not think the responsibility for paying the interest on that type of land lies on the Government.
Is the Minister aware that among the reasons given in respect of the companies which he has mentioned, particularly the one dealing with housebuilding, was that there existed at present a mortgage famine in this country? Does the Minister consider that his statement today will help in any way to alleviate the financial difficulties of persons seeking to purchase homes?
I do not think my statement will help to alleviate it any more than Deputy Molloy's statements over the past few months have adversely affected it. The fact is that twice as much money was available as was available two years ago when Deputy Molloy was Minister.
Is the Minister aware, or does he keep his eyes open, that there is a serious crisis in the building industry and in the ancillary industries—builders providers, carpet manufacturers and a host of others, all caused because of the difficulty young people experience in getting new homes?
I should hate to be considered as being rude to Deputy Lynch but if he went to as much trouble checking these things as I have he would realise that the statement he has made is just not correct.
Only two days ago I was talking to a friend of mine— admittedly a friend of mine and a Fianna Fáil supporter—who is manager of a builders' providers premises. He told me he had to lay off one-third of his workers a week ago, another third will go next week and he said he does not know where he will go from there. He said he cannot shift a yard of timber out of his place.
I should like to point out that early this year the builders' providers had their yards empty. They then found it difficult to supply needs and they bought in and sold to the building contractors, bought in again, sold again to the building contractors and a third time filled their yards. Now they complain to me and to Deputy Lynch because they cannot sell the timber which they got on the off-chance that there would be an upsurge not to 25,000 houses but to 35,000 or 40,000. They did not realise they had overstepped their limits. The blame is neither on us nor the builders. The providers bought in too much material and it is not our job to cushion them now against what was, perhaps, their own fault.
Therefore, there seems to have been a conspiracy among the builders' providers and the ancillary industries.
We cannot delay unduly on any one question. I have allowed a series of supplementaries on this. Deputies Colley and Wilson want to get in.
Somebody is living in the clouds.
The Minister, in his reply, referred to a reasonable level of loan approval. May we take it from that that the Minister regards the level of loans paid out as being reasonable?
Last week the building societies informed me they had more money in their possession than they could lend. If Deputy Colley wants to check that he can do so.
The question I asked is if we are to take it from the Minister's statement that he regards the level at which loans are being paid out by building societies as reasonable.
Yes.
Is the Minister aware that a considerable number of workers have been let off in a brickyard right beside his constituency because of lack of orders?
I am aware that a number of men were laid off. I met the men and their management and made arrangements to try to do something to assist them. The reason they have been laid off is that in the main the luxury type houses which the bricks were being used in are no longer being built, and I do not think that is a bad thing. Perhaps Deputy Wilson does.
Are we to take it that the Minister regards it as a good thing that men are being let off?
Anything that goes wrong is not the Government's or the Minister's fault.
Where is the house that Jack built?
14.
asked the Minister for Local Government the source for his information that 82,000 persons are employed in the construction industry; and the date this statistic was compiled.
The estimate of 82,000 men employed in the building and construction industry was compiled last month and was based on the latest available statistic of employment prepared by the Central Statistics Office.
In view of the large number of reports of unemployment in the building industry in the past two months and in some cases longer than that, now reaching alarming proportions, has the Minister available to him a committee in the Department set up to monitor progress and project output in the building industry? Have this committee recently reported to him warnings of a serious reduction in output in the building industry? If he has had that report, does he propose any steps to avoid this drastic increase in unemployment?
There have not been large layoffs.
There have been 700 in one company alone.
Does Deputy Molloy want a reply? There are more men employed in the building industry now than there were when I took over office 19 months ago. That is a fact. There were not large layoffs in the building industry and the people Deputy Molloy has been quoting in this House as having laid off big numbers of men had to admit to me when I asked them that, in fact, they did not lay off men but that they had heard of other firms who did. Recently, according to the newspapers, two firms have laid off men and the firms gave the reasons Deputy Molloy has given. I am not aware of any large scale layoffs in the building industry. For goodness sake will people who are making these statements try to check them before giving them out as gospel?
Is the Minister aware that in the city of Galway practically every house building site has been brought to a standstill except one small local authority scheme? Does he accept the statement quoted from today's and yesterday's newspapers that one firm alone have let off 700 men?
As Deputy Molloy said before the summer recess. I do not believe everything I read in the newspapers. With regard to Galway city, Galway Corporation had £200,000 for local authority building this year but so far they have expended only £40,000 of it.
I was asking about private house building.
Will the Minister agree that normally in the case of house building there is about a three to four year interval from the time the original financial arrangements are made, the site is acquired and planning permission got, before the house is ultimately completed? Will the Minister say if that is correct?
It was much longer than that before the change of Government but now there is no lengthy period of time after the application for planning.
Instant housing.
As far as local authorities are concerned, they can be in course of production in 12 months.
And completion?
From the time a scheme is first mooted until completion it is well within three years.
Can the Minister then justify his claim to credit for building a record number of houses in 1973?
We have gone off the subject of this question.
Deputy Lynch is trying to get in his little petty ones. The position is that the Fianna Fáil Government made provision for enough money to build 17,500 houses the year in which we took office but we built 25,000 houses. Get out of that one if you can.
How then can the Minister claim credit for building a record number of houses in 1973 if it takes two years to complete a scheme?
A number of preparations were made but in the last five years of Fianna Fáil Government the average was 15,600 per year.
We must make some progress.
Has the Minister had representations from any of the unions representing men employed in the building and ancillary industries about threats to their jobs and about lay offs that have already taken place?
I have had about ancillary industries. A number of their men, they have been told, may be laid off because existing stocks are not being sold. They quite understand why they are not being sold.
The Minister does not care.