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Dáil Éireann díospóireacht -
Tuesday, 29 Jun 1999

Vol. 507 No. 2

Private Members' Business. - National Infrastructure and Settlement Plan: Motion.

I move:

That Dáil Éireann:

–noting that it will be necessary to build some 40 per cent more houses over the next ten years than currently exist;

–noting that current rates of house price increase represent a crisis for individual families and a serious threat to pay moderation and economic growth;

–noting the requirement to balance commercial and residential development to ensure that suburban developments contain office and commercial space as well as housing, and that centre city developments should contain a proportion of affordable housing so that traffic flows in both directions and transport facilities are used efficiently;

–noting the requirement to plan and develop new cities and centres of popu lation to redesign the physical shape of the country in order to ensure infrastructural problems are overcome in an environmentally sustainable way;

–noting that public transport is underfunded, underutilised and insufficiently competitive;

–noting that the planning process is now hopelessly slowed and deadlocked by objections to development and that some objections can best be overcome if the facilities to support new housing, such as roads, public transport, well-maintained play areas and childcare facilities are put in place at the same time as new houses;

–noting with concern the fact that some potential objectors to developments are either funded by competitors or are bought off by interested developers;

–noting the failure of the Government to produce a coherent national waste management plan which is central to any coherent national plan for housing;

–noting the failure of the Government to adequately address the traffic problem affecting all parts of the country;

is of the opinion that at current and foreseeable rates of growth in housing demand, Ireland is facing a housing and infrastructural crisis; and calls on the Government to tackle the looming housing and infrastructural crisis as a single project and to produce a national infrastructure and settlement plan which would decide future development patterns, to be under the aegis of the Department of the Taoiseach and be invigilated on a weekly basis by him, so that all our people are housed in places that are accessible to where they work.

I wish to share my time with Deputy Dukes.

It is clear that Ireland faces a major infrastructural crisis. One sees the evidence of this every morning and evening in our cities and towns as traffic is blocked up on the way to and from work. One also sees evidence of it in the queues of people outside auctioneers' offices, waiting for the opportunity to buy houses which are available at limited offer prices. I have every reason to believe that this will continue to get worse unless something is done about it. It requires politics and political action to change this position. I am not a visionary and I cannot foretell the future. However, I have an idea about how politics can influence the future for good or ill. If politics is to influence the future for good, three characteristics are required – predictability, efficiency and transparency.

One of the reasons for Ireland's current economic success is the predictability of our tax policies as they affect business. As the political parties in the House are agreed on basic corporation tax policy, changes in Government have not changed the business environment as far as tax is concerned. Few other European countries have that degree of predictability. Ireland's membership of the European Union has enhanced that predictability because it has set constraints on what this and other member state governments can do to change direction with regard to matters such as budget deficits, environmental regulation, competition policy, etc. Predictability is an important success factor for Ireland and we can be reasonably comfortable about it.

The second requirement for successful political action in the economic field is the promotion of efficiency. This is an area in which Ireland, particularly regarding the provision of infrastructure, has been deficient. Planning for the foreseeable growth in the number of people looking for houses has been particularly inadequate. The political system at governmental level between Departments and between Departments and local authorities has not coped adequately with the rapid, but foreseeable, increase in the demand for additional houses.

For every ten houses we have today, there is a need to provide an additional four in the next ten years. This is the biggest single construction project ever undertaken in the nation's history. It is truly the millennium project because no construction project of its size and proportion has been undertaken in this millennium. It is important that the provision of these additional houses and all the infrastructure necessary to support them is seen as a single project and not as a series of individual projects, some of which may be co-ordinated with others.

The traffic problem is a symptom of a disease and not the disease itself. The disease is the shortage of housing and this represents the fundamental underlying threat to Ireland's economic success. There is a need to put in place a national infrastructure and settlement plan which would be administered on a weekly basis by the Taoiseach to ensure that, over the next ten years, all the necessary infrastructure is provided to create houses for people which are affordable and capable of being lived in in a civilised way.

At present people are not living civilised lives. They must spend an increasing amount of time in their cars morning and evening because the only place in which they can afford to buy a house is far away from their place of work. Meanwhile, because of this extra traffic over longer distances at slower paces, inner city and suburban residents are facing a rapid deterioration in their lifestyles due to the increased use of their housing areas as short cuts by people avoiding traffic jams on the main arterial routes. Smaller suburban and inner city housing areas are now experiencing levels of through traffic for which they were never designed.

Travel times are becoming longer to and from work because in Dublin, in particular, it has been decided to have a low density suburbia with plenty of green space and few multi-storey buildings or high density housing. There are objections to any change in this position, but those who object fail to realise that the choice of having a low density city carries the cost of a consequent large traffic problem. This is because of the undermining of the economics of public transport by the low density choice that has been made.

The traffic problem will only be solved if the overall infrastructural problem is solved, in particular, the problem of housing and of servicing them with schools, bus, train and waste disposal services and all the other requirements, including child care, which are necessary for a civilised life. If houses are built far away from bus and train services, there will be traffic problems. If, as we are trying to do, more houses are built in outer suburbia or the edges of our cities without tackling the resultant waste disposal, schooling, road, footpath and other problems in advance, inevitably there will be objections from existing residents. They see that providing houses without services will worsen their lives and, therefore, they object and use the provisions of the planning Acts to the full.

We are now moving from having a not-in-my-back-yard culture to a BANNA culture – build absolutely nothing near anything. This is becoming the guiding principle. In the recent local elections, individuals were elected whose sole successful platforms were objecting to travellers' halting sites, new houses in a particular area or some other development which is necessary to house people, including the provision of means of incinerating waste. The willingness of people to use the electoral process to pull up the ladder after themselves once they are safely ensconced in a house and forget about the needs of others increased considerably in the recent election. This is a matter of concern, but it only happened because the political process has shown weakness. It has been unwilling to give leadership in these matters.

Political responsibility is thinly dispersed among so many local authorities and councillors who act individually in each case without any sense of a county government, similar to a national Government, making decisions on a county wide basis. This dispersal of political authority and absence of political planning has left the field open to those for whom objection, motivated by personal and selfish interests, is an increasing way of life and of asserting one's individuality and existence in an area. Due to the lack of political authority and planning, an objector culture is developing. This bodes ill for our ability to undertake successfully in the time required the major construction project which is needed to provide four houses for every ten which currently exist to meet the foreseeable housing need.

Due to the haphazard nature of our infrastructural planning, our existing buses, trains and roads are being used inefficiently. There is a need to change the shape of our cities, not in terms of the overall shape of the city but in the sense of having more businesses located in the suburbs and more residences in the inner city so that traffic is in both directions in the morning and evening. If there are places of work in the suburbs and some people living in the cities, people will travel outwards in the morning and inwards in the evening, in addition to people travelling in the opposite direction. That will allow buses, trains and roads to be used more optimally. It is important that we continue seeking to ensure that residential accommodation be a requirement in all inner city developments, and that office and other business accommodation be a requirement in outer city housing developments.

We also need to take decisions not only to build satellite towns around Dublin but to establish other cities as alternative poles of development. Places like Dundalk, Athlone, Carlow and Thurles should be developed around their proposed or existing third level institutions with a view to possible city status.

It is a matter of great importance that we have a national plan which takes these sorts of strategic decisions. From my experience of the introduction of Operation Freeflow, I do not believe we can afford to leave the physical planning task to the Department of the Environment and Local Government on its own. I mean no disrespect to the Minister, Ministers of State or officials of the Department. Its brief is simply too narrow – it does not encompass education, law enforcement, traffic enforcement, child care or many other areas inherent in a successful human infrastructure development plan. Nor does the Department have the authority to decide on the physical shape of the country – it has a contribution to make but it does not have the overall political authority.

That is why we need a plan led by the Taoiseach. Operation Freeflow was introduced solely because I as Taoiseach took a personal interest in the matter. I brought all the relevant traffic authorities – law enforcement, public transport, other facility provisions, etc. – together for lunch in the Taoiseach's office, told them I would meet them again for lunch a month later, and demanded to see results within that time. Things which had not happened, and were not due to happen for years, all happened within the space of that month, simply because the Taoiseach was involved and these people had to report back.

Without making false claims for my abilities in this regard, this is an example of how the Department of the Taoiseach ought to be used to deal with strategic problems in Government. The housing shortage is a strategic problem facing us and is the main contributor to the traffic problem and other factors leading to the deterioration of lifestyle in our society. We must deal quickly with this problem.

In the context of the objector culture to which I referred, I have noticed a deplorable practice in my constituency, which undoubtedly occurs elsewhere also. A cement plant was to be built but a competitor who operated another such plant financed the cost of objectors to the proposed plant; and those proposing the cement plant paid what they called "goodwill money" to objectors, who then withdrew their objections. I regard this as corruption. Politicians have as much or as little influence on the planning process as do objectors, because neither of those groups makes the decisions. If politicians had received or paid such money we would be immediately accused of corruption.

It is corrupt for a company to pay people to object to a competitor's proposal. It is also corrupt for a developer to pay people to withdraw their objections. In both cases the actions materially affect the course of decision making. It could be argued that the decision is taken not by the objector or the developer but by someone else, but in business time is money and if a development can be delayed for a sufficiently long time – in one case objectors used the court as a further delaying tactic, after the planning appeals board had made its decision – that is as good as killing it. People who finance or buy off objectors are, therefore, corrupt in any understandable meaning of the term, and this corruption must be stopped if the bottlenecks in our society to which I referred are to be overcome.

I propose to share the remainder of the time with Deputy Clune. Deputy Bruton has put our infrastructure problem in a new perspective, that of our future development patterns. This perspective is badly needed and the motion is timely. The Government is in the process of preparing the national development plan for the next EU financing period, from 2000-6. During that period we will face major infrastructural needs with a declining inflow of funds from the EU and a correspondingly large and increasing need for funds from, or supported from, our resources.

It is the accepted wisdom of those involved in planning for economic development that we currently have a major infrastructural deficit but I am not sure how deep that understanding goes. It is far from commonly held that a major part of that deficit is in housing, and Deputy Bruton has set out in clear terms how and why that is the case. The sooner policy makers and the Government realise how central housing is to our infrastructural deficit and how crucial a part of the problem it is, the better.

There are two major components in our infrastructural deficit which we must address between now and the end of 2006 – I take that perspective because it is within that framework that we will examine a national development plan. The first component is the backlog, the insufficiency of our current infrastructural provision in face of our current needs for economic and social infrastructure. Housing is a major part of that problem. There is no sector of the housing market in which supply comes anywhere near meeting the level of demand. House prices are still rising at an appalling rate. It is a measure of how desperate the problem is, and how desperate the Government is, that it must resort to clapping itself on the back because the rate of increase in house prices appears marginally to have slowed down or, to borrow a phrase from "Star Trek", reduced from warp speed to the merely supersonic.

It was bizarre to hear Government spokespersons being quoted and interviewed last week, saying how wonderful it was that the rate of house price increases was coming down. There is nothing to be smug or self-congratulatory about in the fact that the rate of increase has slowed from ten times to eight times the annual rate of inflation. That is doing nothing for young couples earning £40,000 per year between them who cannot afford to buy a house. No amount of smug self-congratulation by the Minister of State, Deputy Molloy, or any other spokesperson for the Government, on the reduction in the rate of increase in house prices will matter a traithnín to a couple in that position because they still will be unable to afford a house at the end of this year, and they will be able to afford it even less by the end of next year.

Such evidence, as is available, indicates that rents are rising also. Rents for modest houses and apartments are now at levels which would have been inconceivable five years ago. I heard of a case the other evening of a couple who are paying rent of £1,100 per month for a relatively modest four bedroom house in a suburb of Dublin. Young couples, forced into the rental sector because they cannot afford to buy a house, are now paying rents which in many cases exceed what they would have expected to pay for a mortgage a few years ago. Last autumn, parents of third level students who live away from home and off campus were shocked to find out the amount by which rents had risen from the previous June. I have no reason to believe the same will not happen this autumn. Students who between them were paying rents of £400 for apartments at the end of their leases in June of last year found that their rentals had gone up to £500 when they went back to rent the same apartments in September or October of last year. That will continue to be the case.

Local authority housing lists are already enormous and no matter how the Government dresses it up, it is perfectly clear that the current rate of local authority housing provision is not keeping up with demand. The waiting lists get longer, and it does not matter for how long the Minister of State, Deputy Molloy, goes on about it in this House – and he does go on about it – the housing lists get longer. The level of demand for local authority housing is being further fuelled by the fact that even modest starter house prices are now beyond the reach of many people who, until only a few years ago, could reasonably have expected to be able to buy a home of their own.

Our road infrastructure is appalling. The National Roads Authority considers that it is a reasonable objective to bring average journey speeds between major urban centres to 50 miles per hour. Most Members of this House do a fair amount of driving around the country and no one will disagree with me when I say that nobody travelling from any one of our major urban centres today to any other could possibly hope to achieve an average journey speed of 50 miles an hour without completely ignoring speed limits and common prudence in driving. It cannot be done. That is a medium-term objective identified by the National Roads Authority. We are miles away from that and although we have been spending substantial amounts of money on our road infrastructure, journey times are getting longer even in the areas where we have made major improvements.

I live what would normally be a distance of about an hour's journey from Leinster House. In the past two years, I have found that the journey time at any time of the day is a minimum of an hour, an average of an hour and a quarter and, at some times in the morning, an hour and a half and even up to two hours for a journey of 35 miles. That is not unusual. I had occasion for a time some years ago to travel frequently between my own home and Limerick, a journey which, even before the Portlaoise bypass, I could usually do in about an hour and a half. It would be foolhardy to try to make that journey now in an hour and a half because the level of traffic has increased and the level of provision of road infrastructure has simply not matched it.

In towns throughout the country, raw sewage is still being discharged into water courses. During the course of a recent Question Time in this House, the Minister for the Environment and Local Government refused even to try to indicate a target date by which we might achieve the objective of full waste water treatment in all urban centres. The Minister for the Environment and Local Government was unable to tell me what would be a reasonable timescale in which to expect that we would stop the practice of discharging raw sewage from urban centres into our water courses.

Water quality is a major worry despite the fact that the Minister for the Environment and Local Government tries to put a good gloss on it. The latest Environmental Protection Agency reports on water quality give rise to serious concern. Inevitably, the Government has picked out the good point. It is true that the incidence of heavy pollution in our water courses is decreasing. On the other hand, the incidence of moderate pollution is increasing. The EPA sets out clearly that the number of cases of moderate pollution of water courses is increasing year by year. That means that we have a far more pervasive problem with water quality than is officially admitted.

Our railway infrastructure has come into question in recent times. The Minister, Deputy O'Rourke, who was in the Chamber a short while ago, has been obliged to come forward with a major investment programme of several hundred million pounds, not to bring about a major improvement in the level and capacity of service being supplied on the railways but simply to get what we have into a reasonably efficient and safe condition.

It is interesting that at a time when we are considering making major investment simply to ensure the safety of our railway system we have other projects coming forward, based on spurious ambitions for our railways, that can have major effects on our environment. For example, we have a proposal for a major landfill operation in Silvermines, County Tipperary, being justified on the basis that there is a rail link adjacent to the site. If our railway system cannot safely take the volume of traffic that is on it now, it will certainly not be able to deal with trains bringing tens of thousands of tons of waste down to Silvermines, any more than it will be able to deal with another proposal to locate an incinerator in Kilcock in County Kildare, again on the basis that there is a railway line nearby. I hope that those who are called to make decisions on these matters will examine the wider aspects of our infrastructure provision when they are making them. If they do not, we are storing up enormous problems for ourselves.

I have referred to only four areas of the backlog in our current infrastructure provision. There is another component in our infrastructure deficit, that is, the pressing need that now exists to plan infrastructure provision to deal with current levels of growth and the foreseeable infrastructural demands arising from those levels of growth. A continuation of current levels of economic growth, household formation and rates of population increase will create an escalating need for infrastructure provision. Demands in relation to the quality of the infrastructure provided, whether it is in housing, roads, education facilities, social facilities, waste management, waste treatment, etc., will continue to rise. When we factor in accepted policy objectives in relation to sustainable growth and a reduction of greenhouse gas emissions, we can see that the need for infrastructure provision and expenditure is racked up even further.

The volume and the quality of infrastructure required are not the only demands we face. We must also have regard to the requirements of coherence and efficiency in our planning process, and we must have regard to regional considerations. Coherence and efficiency in planning require a new approach to planning law. The Government had promised a Bill for mid-summer. Mid-summer's day has come and gone and we still have not seen the Bill. With increasing infrastructural demand, planning has become a more contentious issue and all the signs are that this trend will continue. As Deputy Bruton said, the recent local elections showed that there is widespread resistance to infrastructural expansion in key areas such as housing, accommodation and waste treatment and management. It now appears that in some areas the NIMBY principle is a good basis for getting elected. We must wonder what constructive contribution will be made to the increasingly difficult area of planning by the NIMBY brigade when they are involved in making decisions.

Deputy Bruton drew attention to very dubious practices in our planning procedures that are now being admitted to. In those circumstances it is even more urgent that we reinforce the transparency and efficiency of our planning process. It is possible to do these things while giving elected representatives a greater role in the planning process. It would be impossible to provide the public accountability for planning that is required without giving our elected representatives a more explicit and determining role in the planning process.

Regional concerns become more urgent each day for a number of reasons. First is the simple matter of equity. It is inequitable that the fruits of our economic success are not more widely shared throughout our society. It requires no great wisdom to see that today there is still an enormous imbalance in terms of wealth and access to services between the west and the east. We are now paying the price for ignoring the wisdom that was popular in 1969, when we junked the Buchanan report as a result of the most appalling combination of influences. We are now back to that position. As Deputy Bruton said, we need a new approach to the development of urban areas and to providing the services required to allow growth in areas other than those where we have allowed it to take place until now. In terms of efficiency, it is utterly undesirable to have concentration of growth in the eastern half of the country, which is the norm. Infrastructural planning and provision must be seen explicitly as effective tools in remedying this inequity and avoiding this inefficiency. That is what the motion sets out to do and I hope that if the Government even half believes some of the things it has said in the House, it will accept the motion and act accordingly.

I support the motion and the point made by Deputy Bruton that he, as Taoiseach, had taken hold of Operation Freeflow. It is time someone at that level addressed the serious infrastructural deficit and the problems people are experiencing from day to day. We are told that those are the problems of a booming economy. If so, that economy should address those problems and invest where necessary to ensure that we maintain our competitive edge, which is vital for the country's future.

Why did less than 50 per cent of the population vote in the recent local elections? Is it that they feel the economy is going so well that they do not need politicians, or is it that they despair at the lack of infrastructure in their local areas and the effect such neglect is having on their lives? In many cases, it is the latter. The lack of forward planning has contributed enormously to daily traffic jams and to the stress caused by living in urban areas.

The Taoiseach recently opened the Jack Lynch tunnel in Cork. That is the culmination of the LUTS plan which was envisaged for the city over 20 years ago. A vital infrastructural development is, however, missing from the west of the city. The lack of a Ballincollig bypass is causing severe traffic jams in the area and turning housing estates into rat runs. Yesterday local elected representatives were asked to a briefing by the IDA and the Cork Institute of Technology, which are proposing a major technology park in the very area that is suffering such major traffic problems. I do not doubt that such a technology park would be a great asset to Cork if the correct infrastructure were in place, but to build it we would need a material contravention of the development plan and there are no roads in place to deal with the extra traffic that such a technology park would entail. What are we, as public representatives, to say? We know very well that it is necessary for the development of the city, but at the same time those living in the area cannot take any more, and I do not doubt there would be objections to the development. The infrastructure must be put in place before the already overburdened population of the area are troubled further.

I live in Dublin three days a week, and Cork's traffic problems are not as severe as those in Dublin. The Oireachtas Joint Committee on Health and Children was recently briefed on nursing shortages and the difficulties hospitals have in attracting theatre nurses, cardiac care nurses and intensive care nurses. The reason is that nurses cannot afford to live in Dublin. They cannot afford to buy houses here and do not want to deal with the stresses of traffic. A recent meeting discussed loading nurses' incomes to enable them to live in Dublin. This is an opportune time for the Taoiseach to intervene. No Department is taking responsibility for overall traffic management and control in our major city. We will not see Luas come on stream for some years – sometimes it is on, sometimes it is off. It is a debacle, yet there are cars stuck in traffic and this affects the quality of life of those sitting in them as well as the environment. The lack of sufficient public transport is one of the reasons for our traffic problems. Efficient, reliable and affordable public transport, which is provided in many European cities, is the key to solving those problems.

Another major infrastructural problem is the lack of child care facilities, which is contributing enormously to the problems of young people with children. There are two sides to this problem, the first is the cost of child care and the second is the absence of facilities. Both can be solved in different ways.

Yesterday I attended a briefing in my constituency about the problems experienced by people providing child care when applying for planning permission. There are objections if they seek permission to locate in residential areas on the grounds of traffic and noise, while they are not encouraged to look for permission to locate in commercial or industrial areas. Young people are caught in the trap of being committed to work while being unable to afford someone to mind their children. This problem will boil over. The recent child care regulations are very welcome but as a result there is a reduction in the number of places offering child care.

I support the motion. There are other areas I would like to discuss, such as the lack of waste management infrastructure, which we debated recently. I call on the Taoiseach and the Government to address this matter in a coherent fashion.

I move amendment No. 1:

To delete all words after "That" and substitute the following:

"Dáil Éireann notes with approval:

the increased levels of funding in 1999 relative to 1997 for infrastructure such as national roads, up by 30 per cent to a record £337 million, non-national roads up by 40 per cent to a record £242 million – in addition to which local authorities are providing a further £81 million – water and waste water up to 70 per cent to a record £275 million and housing up almost 46 per cent to just over half a billion pounds;

–the comprehensive range of initiatives taken by the Government to maximise and expedite housing supply and secure house price stabilisation which have resulted in the moderation in house price increases in the last six months;

–the record level of new housing output of 42,349 in 1998 and the 21 per cent increase in output during the first four months of 1999;

–the announcement of a four year multi-annual programme of local authority house building to provide an additional 22,000 houses over four years;

–the announcement of a Commission on the Private Housing Rented Sector;

–the initiatives taken in relation to the provision of affordable housing;

–the publication of draft guidelines on Residential Density to make more sustainable use of development land while ensuring a high quality living environment;

–the serviced land initiative which will provide serviced sites for over 100,000 additional housing units, and the Rural Towns Initiative;

–the publication of Strategic Planning Guidelines for the greater Dublin area to provide an integrated land use and transportation strategy and a framework for future infrastructural investment;

–the Government's decision in principle to draw up a National Spatial Development Strategy;

–the success of the Government's negotiations on Agenda 2000 and the consequent attainment of Objective One status for the Border, Midland and Western regions;

–that a major new Bill reforming and consolidating the planning code will be presented to Dáil Éireann shortly;

–the additional resources deployed to cope with the increased number of planning applications in local authorities and appeals in An Bord Pleanála;

–the Government's commitments in relation to the Dublin light rail project and Exchequer capital funding for bus and rail investment;

– the measures being undertaken, in the framework of the DTO Short-Term Action Plan and otherwise, in relation to traffic in Dublin in the period to end 2000;

–the publication of a new policy statement on waste management, Changing Our Ways, to provide a national framework for local waste management plans;

–the new Urban Renewal Scheme and the proposed scheme for the renewal of smaller towns;

–the Government's adoption of public private-partnerships as a means of procuring infrastructural services;

and calls on the Government to continue to implement and further develop these policies to ensure that the population has access to adequate housing, that Ireland's infrastructure is brought up to the standards required of a modern, rapidly growing economy during the period of the forthcoming National Development Plan 2000 – 2006, and that physical and economic development takes place in a sustainable and spatially balanced manner.".

The motion before the House is a very welcome one because it indicates that Fine Gael, like Rip Van Winkle, is at last waking up to the realities of modern Ireland.

The Minister is only trotting after us.

It shows some sign that Fine Gael is waking up to the actions that need to be taken to bring Ireland into the 21st century. Fortunately, it has not taken the Government so long to recognise the problems facing us and, more importantly, to take action to tackle those problems and to plan for the longer term.

Fine Gael spent two and a half years in Government until the middle of 1997 and failed to recognise the developing trends, let alone take action.

How much of what the Minister pats himself on the back for was set in motion by the previous Government?

June 1997 brought us to the end of the rainbow. At the end of a rainbow, one expects to be dazzled by a crock of gold. However, at the end of their rainbow, we were dazzled by the glaring absence of forward planning and building for the future.

In the housing area, there was not a coherent attempt – or even an incoherent attempt – to address the problem of escalating house prices before matters reached the serious situation with which this Government was left to deal. The one major step taken by the previous Government – the increase in stamp duty – only served to hasten the deterioration of the situation by choking off the supply of second hand houses. Fine Gael still does not seem to have learned from its mistakes. Since settling in for the long haul on the other side of the House, the proposals it has come up with have centred on adding demand to the market when the dogs in the street are barking "supply, supply, supply" as the main element of the solution – although not the only solution. The same can be said of its approach to infrastructure and transport requirements.

I welcome the opportunity to draw together and put on the record of the House the enormous achievements of the Government over such a wide area of policy in just two years in office. The motion refers to some of the major challenges the Government has faced, and will continue to face in the period ahead. In confronting them, we should be conscious that these challenges relate to the unprecedented and unpredicted success of our economy over recent years. The continuation of that success will depend, to some extent, on how we respond the these challenges.

The Government's belief that this response must be strategic and coherent across a wide range of policy areas was borne out by the decision in principle to draw up a national spatial development strategy. This was announced as one of the measures adopted in the wake of the second Bacon report.

Fine Gael have only now woken up to the fact that the Government has already taken this decision. Perhaps Fine Gael know about it and are attempting to piggy-back on the Government's decision on the actions taken, or on the other actions about to be taken, by the Govern ment. However, the terms in which its motion is expressed suggest that it has failed to land comfortably on the piggy's back. In calling for a natonal infrastructure and settlement plan, it is proposing an exercise that would be static and partial in character and out of date in concept. The Government, on the other hand, sees the subject matter as part of a wider, more dynamic approach that would take the form of a national spatial development strategy to encompass economic performance, social inclusion and sustainable development.

The arguments for national spatial guidance have been advanced in a number of recent reports and regional studies. The European spatial development perspective, which was adopted by EU Ministers responsible for spatial planning last month, has developed an approach and concepts that we can use to advantage in spatial planning in Ireland. The three fundamental goals of the perspective – social cohesion, sustainability and competitiveness – are very much to the fore in the recently prepared strategic planning guidelines for the greater Dublin area. They have been adopted in the draft regional strategic framework for Northern Ireland which will contribute to achieving a common approach in spatial planning in both parts of Ireland.

The competitiveness of Ireland is dependent on a wide range of factors. A key consideration is the effective economic functioning of each of the different regions of the country. This means developing each region in a way that optimises its own distinctive economic potential, enabling it to exploit fully the resources which it possesses. Each region does not possess the same potential or the same range of attributes and characteristics and it would not be expected that each region or area would develop in a similar way. Each has its own strengths and weaknesses and the intention should be to determine what these are and to build upon the strengths and compensate for the weaknesses.

The economic competitiveness of the country and of its regions has to be advanced in parallel with policies to achieve other goals relating to sustainable development, the quality of life, social cohesion and conservation of the natural and cultural heritage. This introduces the concept of a balance between achieving these goals within the country as a whole and within the different constituent areas. Related to the idea of balanced developement is that of integrated development where the aim is to integrate policies as they affect an area. The intention is not only to avoid conflict and diminution of benefits but to achieve a synergy where extra benefits are achieved from the co-ordinated formulation and operation of policies.

A national spatial strategy is, of its nature, longer term than our other planning instruments, with a vision of upwards of 20 years which will provide a coherent context for longer term investment decisions. Public investment cannot be delayed pending the production of such a strat egy. Existing centres will require continuing inward investment.

The building of entirely new cities is suggested as a response to our rapidly growing city regions. While it has been put forward in the past as the classic overspill response, it has a number of serious disadvantages and was rejected as an option in the recent strategic guidelines for the greater Dublin area. The main disadvantage of that model is that it is a very high risk option. It would require high levels of initial investment and is dependent on reaching target populations within a reasonable timescale. Moreover, the development of a small number of new towns offers people little choice in where they will live. There can also be problems associated with achieving a balanced social mix and developing an identity which is so important for stability. A study of the history of new cities in Britain and further afield will see these lessons underlined.

The national spatial strategy is likely to recommend a broad planning strategy for the country at large, to identify broad spatial development patterns for areas and set down indicative policies in the location of residential development, industrial development, rural development and tourism and heritage. The strategy will provide the basis for co-ordination and co-operation in policy formulation and particularly in decision-making on major investment in infrastructure, including public and private transportation infrastructure and major industrial location.

While Ireland has made significant progress over the past decade, the benefits of our economic success have been spread unevenly. The forthcoming national development plan will have as one of its principal objectives more balanced regional development, in so far as public policy can make this happen and can influence the spatial distribution of economic activity. Maintenance of Objective One status for the Border, midland and western regions should assist less developed parts of the country to compete better for foreign investment through the more favourable State aids regime available in Objective One regions.

That is a ball the Government almost dropped. It was lucky to get away with it.

This approach must, however, recognise that there will be certain kinds of large employment enterprises which will always wish to locate in, or close to, the major urban centres. It will be vitally important that the spin-off opportunities that these enterprises present to home grown businesses are fully exploited.

Investment in infrastructure can have an important bearing on the spread of economic activity throughout the country. In deciding on the investment strategy for various categories of infrastructure in the NDP, we will have to ensure it is complementary to and supportive of spatial development. Balanced spatial development should address the needs of all regions within the limits of the resources available. A major infrastructural priority in the greater Dublin region will be to address the problem of congestion, while in the Border, midlands and east regions the priority for infrastructure will be to make the region more accessible for productive investment in industry, tourism and internationally traded services.

On the question of infrastructural investment, the Government has over the past two years significantly increased the levels provided under the existing NDP. Contrast this with the much more timid approach of the rainbow Government which stuck pretty rigidly to the limits of the plan, notwithstanding the evidence of the need to reappraise them in the light of newly emerging circumstances.

A record sum of £337 million is being provided for national road investment and maintenance in 1999 by way of funding to the NRA and local authorities. This represents an increase of 30 per cent on the initial 1997 provision of £255 million. This is also a record year for non-national roads. In excess of £242 million is being provided in State grants for these roads in 1999, an increase of 40 per cent on the initial 1997 figure of £170 million.

On the specific issue of Dublin transportation, the DTO short-term action plan, published last September, is designed to advance and accelerate a set of measures consistent with the DTI strategy which can be completed in the period to end 2000. Detailed objectives include completion of 12 quality bus corridors and 180 kilometers of cycle tracks by end 2000; provision by end 1999 of an additional 150 buses by Dublin Bus; additional rolling stock for DART; lengthening of outer suburban and key DART station platforms; and upgrading by end 2000 of the Maynooth-Clonsilla rail line.

Not a mention of Luas, has it disappeared?

The Deputy should be a little better informed on what is happening with Luas in view of the recent announcements.

It has literally gone underground.

The Minister without interruption please.

Similarly, in the area of water and sewerage infrastructure, investment levels have increased by 70 per cent since 1997, to a record level of £275 million this year. Key initiatives are being implemented by the Government to provide services to open up land for residential development. The serviced land initiative has provided £39 million in Exchequer funding to open up 100,000 additional housing sites.

Another important measure announced in this year's budget is the rural towns and villages initiative aimed at providing badly needed water and sewerage facilities in towns and villages that have not been accorded priority under existing programmes. The rural water programme is being driven forward in a planned and properly resourced way and in partnership with the group schemes movement to provide adequate supplies of good quality water to rural areas and to support local development.

However, despite the greatly increased level of existing programmes, the Government recognises that Ireland will not be able to continue to prosper and grow unless the basic infrastructure is in place to support it. We may be approaching EU income levels but we do not yet have the stock of capital, built up over decades of high investment, which is enjoyed in other advanced countries. The Government is determined that this infrastructural deficit will be radically addressed in the new national development plan for 2000-06 which is at an advanced stage of preparation. This plan will aim to mobilise the additional funds flowing to the Exchequer, the funds flowing from the EU as a result of the very successful Agenda 2000 negotiations and private funding, to carry out a seven year infrastructure programme unprecedented in the history of the State. The programme will transform our roads network, greatly improving road access to all regions. Equally, the need to substantially upgrade our public transport infrastructure will be recognised.

Continued large-scale investment will be required in water and waste water services if we are to meet EU environmental standards, support economic development and ensure a strong supply of serviced land for housing. The NDP will also provide for a major investment plan for waste recycling and disposal. The policy context for this programme has already been set in last October's policy statement on waste management, entitled "Changing our Ways", which set ambitious waste management targets and involves considerable capital investment exceeding £600 million.

The Government has decided the public private partnership approach offers advantageous new routes to the procurement of needed infrastructure and we are committed to exploiting the advantages of the PPP approach to the greatest extent possible. A special unit has been established in the Department of Finance and in my Department for this purpose. The Minister for Finance recently announced an important Government decision on specific PPPs.

If we are to deliver on these capital projects within the timescales envisaged, we need to look at ways of speeding up the planning phase of projects, shortening the lead time and eliminating undue delays. We have been considering how the planning system can contribute to this and the forthcoming major Bill to reform and consolidate the planning system will contain a number of measures designed to streamline procedures and speed up the approval process.

While on the subject of the planning Bill, over the past two years we have been subjecting the planning system to a very rigorous review following extensive public consultation. I am confident the Bill which I intend to publish next month will represent a thorough revision of the existing code which will give us a planning system better suited to modern requirements, while embodying the concept of sustainable development. It will also help address some of the concerns mentioned in the Fine Gael motion, including the issue of social and affordable housing. I look forward to the support of Members on the other side of the House for those provisions.

While the planning system has coped well with the huge influx of applications and appeals, there is no denying that delays have arisen in processing planning applications and appeals at national and local levels. On two occasions last year local authorities were asked to review their operations and, where necessary, to employ additional planners. At various times a number of Members have raised the question of planning offices being inundated and unable to cope with the number of planning applications. As I indicated previously, we asked each of the local authorities to indicate their needs. A survey carried out by my Department in mid-May last showed that staff numbers in the larger local authority planning departments, that is, county councils and county borough corporations, had increased by some 14 per cent, to more than 750, in the preceding year. Several local authorities indicated at the time that they were on the point of recruiting additional staff to their planning departments. I am certain, therefore, that the situation has improved even further since then and that number has been exceeded.

The measures which have been taken to enhance the performance of An Bord Pleanála were outlined in this House last week. Deputies will be aware that I have appointed an additional member to An Bord Pleanála and that substantial additional staffing is being put in place. I expect the cumulative effect of the various measures which I and the board have taken will begin to show results quickly in terms of the time taken to dispose of appeals and to reduce the backlog of appeals which has developed.

I now turn to the housing issue because all of the matters I have been talking about come together in one way or another to impact on housing. The motion recognises this. The Government realised quickly on coming into office that undue inflation in house prices had the potential to damage continued economic progress as well as giving rise to serious social problems. As I said at the outset, the rainbow Government scarcely lifted a finger despite the ominous trends that were already well established during its tenure. By contrast, urgent action has been the hallmark of the Government's approach to this problem. Recognising immediately that the supply of serviced land for residential development was a major factor, I made the case for what has become known as the serviced land initiative and the first tranche was included in the Government's first budget in 1997.

Similarly, we lost no time in initiating a detailed study by experienced economic and planning consultants, working with officials of the Department, to provide a detailed assessment of the factors underlying house price inflation and a set of recommendations for action. It is generally accepted that few reports have been implemented with the alacrity and determination with which we implemented the first and second Bacon reports. While it is well recognised that house price inflation can be difficult to rein in once it takes hold, there are already encouraging signs that the Government's actions are bearing fruit.

House price data for the first quarter of 1999 support the view that the rate of house price increase has peaked and should moderate significantly this year. The rate of increase in house prices nationally, both new and second-hand, was lower in the first quarter of 1999 than in the preceding quarter. A significant feature of these latest figures is that, for the second quarter in succession, there has been little change in the average price of second-hand houses in Dublin, which has tended to be a leading market indicator in recent years. Over the past six months, second-hand house prices in Dublin rose by only 2 per cent, compared with an increase of almost 25 per cent in the preceding six months. There is a good prospect that the trend in new house prices will moderate appreciably in coming periods with the continued increase in new housing output.

Speaking of housing output, last year's output of more than 42,000 set another new record and the indications are that we will surpass that this year. There has been a very substantial increase of 21 per cent in housing output in the first four months of 1999. Furthermore, despite the difficulties in planning departments or An Bord Pleanála, there has been a 14 per cent increase in planning permissions in the first quarter of 1999. That points to a continuing strong trend in future output.

Meeting increased housing demands in a balanced and efficient fashion requires not only increased private housing supply but also providing for tenure choice. It is for this reason we recently announced the establishment of a Commission on the Private Rented Residential Sector, with the aim of producing recommendations which will make an important contribution to achieving a thriving, more diverse and well managed sector.

On the social housing side, we are not content with the fact that we have this year brought the social housing programme to its highest level for 13 years. We are looking to the future and have indicated that a new four year multi-annual local authority housing programme of 22,000 additional local authority houses will commence next year. This represents the equivalent of an increase of more than one fifth on the existing local authority housing stock. In addition, we believe the voluntary housing sector has the capacity to complement the local authority programme in a major way, with enhanced support from the Department and local authorities. Our target is to expand social housing output through the range of local authority and voluntary housing programmes to cover the needs of more than 16,000 households per annum over the next few years, thus delivering social housing to almost 60,000 households over the next four years.

As I said at the outset, I am glad to have been able to speak about the many advances made in the areas of housing, infrastructure and planning over the past two years. I regret that time constraints have allowed me to touch only all too lightly on very important subjects. A tremendous amount of work has already been done to ensure policies in these areas are advanced in a coherent and strategic manner. The forthcoming national development plan will give us a policy and resource framework to take forward these policies over the coming years.

The importance the Government attaches to effective implementation of infrastructure programmes is underlined by the recent Government decision to set up a Cabinet subcommittee, chaired by the Taoiseach, on infrastructural development, including public private partnerships. The membership consists of the Tánaiste, the Ministers for Finance and Public Enterprise, the Attorney General and myself. The subcommittee has a focused job. Its immediate task is to prepare, by mid-September, a framework for action in this area. Among the issues it will address will be those relating to the infrastructural approval process and the development and implementation of PPPs. The subcommittee will be serviced by a cross-departmental team of senior officials from the Departments concerned.

I readily agree that mechanisms need to be put in place to monitor the implementation of programmes in the various sectors so that shortfalls are identified in good time and remedial action taken where necessary. The proper management of any programme requires as much. I am currently examining organisational structures and resources within my Department to ensure policies across the areas in question are delivered in the focused and co-ordinated way that is required. However, I find it difficult to take seriously the proposal in the Fine Gael motion that the Taoiseach would be cast in the role of invigilator, like an exam supervisor patrolling Departments, usurping the role of the Ministers responsible. I thought all along the Taoiseach was an enthusiast for the strategic management initiative.

The House may be assured the Government takes seriously its role in ensuring the Ireland of the 21st century has the physical infrastructure and housing stock befitting a modern, vibrant and inclusive society. Any objective judgment on our record to date in this area would not provide anything but confidence in our ability to deliver on this. That is more than can be said for the record of certain other parties in the House.

I wish to share time with Deputy Seán Ryan.

Is that agreed? Agreed.

Any objective judgment of the Government's performance in this area would not make us confident it is capable of delivering anything worthwhile.

The Labour Party supports the motion tabled by Fine Gael which goes to the heart of the next phase in this country's economic development and social progress. It is a theme which has been raised on many occasions by the leader of the Labour Party and a central one in his address to the party conference two months ago. The motion relates to housing, transport and infrastructural deficiencies and highlights the problems the Government has failed to address.

The Government appears to be surfing on the crest of the country's economic success, oblivious to the hazards which lie ahead for our prosperity and to the storm gathering around it. Ireland is a very changed country from the time 40 years ago when these Houses might have been considering the need to industrialise or from 30 years ago when they were preoccupied with the first attempts to modernise Ireland's social legislation. Ten or 15 years ago, the Houses were preoccupied with the seemingly insoluble problem of unemployment.

The modern, prosperous European country we have today, which enjoys levels of wealth and prosperity unheard of a couple of decades ago, came about as a result of changes which had to be worked for and by conscious political decision making. By the same token, political decisions must now be made about the future development of the country. Unfortunately, the Government seems unwilling or incapable of making such decisions.

Notwithstanding the country's economic prosperity, Ireland faces many problems. Our transport infrastructure – road and rail – is closer to the Second than the First World. We have a housing crisis, the magnitude of which the Government has failed to grasp. There are also many warning signs that the prosperity and economic success we now seem to take for granted may be under threat unless remedial action is taken. We are aware of the existence of considerable social inequality in spite of increased prosperity. There are also problems in the education area. However, the biggest problem is on the infrastructural side and housing is the biggest of the infrastructural problems.

This Government has made housing a luxury. A young professional couple at the start of their careers cannot now afford to buy a home of their own. People are forced into renting poor quality accommodation at exorbitant costs, often without security of tenure. Local authority waiting lists are twice the length they were when the Government took office and homelessness is no longer something confined to cardboard city. It is a condition which has been visited upon many people of different ages, people who are being evicted from private rented accommodation and simply do not have anywhere to live.

If any one thing illustrates the shortcomings of this Government as it now marks two years in office, it is surely its utter failure to make any impact whatsoever on the housing crisis. This Government has more resources at its disposal than any previous Administration in the history of the State. Yet, with each passing month, the local authority housing queues grow longer and the price of even the most modest dwellings pass further and further out of the reach of young couples. Tens of thousands of people in the private rented sector face continuing rent increases and insecurity of tenure.

The newspaper photographs we saw last month of prospective buyers queuing for days for the opportunity to buy apartments with prices starting at £150,000 vividly illustrated the extent of the housing crisis and clearly revealed that Government policies are not working. The Government, in general, and the Minister for the Environment and Local Government, in particular, seem intent on ignoring the plight of those suffering as a direct result of the Government's failure to deal with the housing crisis.

If the Minister wanted further independent evidence of the seriousness of the crisis, it can be seen in the Dresdner Kleinworth Benson report published last month which revealed that housing in Ireland is now the second most expensive of the countries surveyed. I was not surprised by the contents of the report which confirmed the findings of the Labour Party housing commission. The Labour Party's research revealed that the average price of a house, relative to earnings, doubled between 1994 and 1998. For thousands of people, this means they are priced out of the housing market and do not have any prospect of owning a home of their own.

It is evident that the Government's total reliance on the Bacon report was misplaced and that property prices are continuing to rise at a rate which is creating huge difficulties for first time buyers. Four day queues of people wishing to buy expensive apartments in Dublin and similar queues for semi-detached homes in Dundalk are among the more dramatic illustrations of the expensive and demoralising battle facing young couples as they attempt to put a roof over their heads.

Housing is a social need. Since it represents one of the fundamental requirements of human beings, it should not be treated in the same way as non-essential traded commodities for speculation or investment. Steps must be taken to control the price of housing. The Government should establish a fair price certificate system for all new houses, as recommended by the Labour Party housing commission. The system should be based on agreed criteria such as the quality of the property and should be closely linked to building costs, land costs and levies and provide a reasonable profit for the builder.

The social and economic results of the housing crisis affect every family and town in this country. The Government's policy has failed and a new direction is needed. The recommendations of the Labour Party housing commission represent a radical new approach to the housing crisis. Instead of seeking to ignore the problem, the Government should have the good grace to acknowledge its abysmal failure in this area and should implement the recommendations of the housing commission's report. As a result, house prices would at long last be brought under control and people would be able to afford to put roofs over their heads and have some hope for the future.

The right to good quality, affordable housing should be enshrined either in the Constitution or in legislation, as is the case in most other European countries. A national strategy for affordable housing, backed up by comprehensive inspection and monitoring and overseen by an independent audit committee should be introduced. A minimum of 20 per cent social housing should be provided for in all residential developments. Is this what the Minister was referring to when he mentioned the measures he intends to take in the proposed planning Bill for which we have been waiting for two years? We were informed that it would be published mid year. The Dáil will go into recess later this week and there is still no sign of it. It was my hope that the Minister would at least have named the day. This is yet another example of a continuous string of promises but lack of delivery.

There is a need for 10,000 units of social housing per annum to tackle current waiting lists and other unmet housing needs. The Minister said that 22,000 new houses will be provided over a four year period. In the Estimates which were presented at the Select Committee on the Environment and Local Government two weeks ago, not a single penny has been provided for additional social housing this year. We were informed that a start would be made next year. There is a lead-in time of 18 months to two years in the provision of housing. This continuing delay and long-fingering is prolonging the agony of those in need of housing.

There is a need to introduce a licensing system to govern the private rented sector. All the Government has offered is a commission which will not report until this time next year. This means that further time will elapse before the measures and legislation that are needed now to provide protection for tenants are introduced.

Housing has to be seen in a wider context. There is road and rail gridlock. It now takes five hours to complete a journey that once took three hours. It is unreliable and unsafe to travel by car and there is no public transport alternative. The Luas project agreed by the previous Government was long-fingered, changed and dithered with for so long that even the most optimistic now believe that it will be many years before it is put in place.

There is an urgent need to change and modernise the planning system. The Planning Act, 1963, is out of date. There is a need for a new planning regime which will not confine itself to physical planning but will be based on social needs and will take into account the need to develop communities. It should not be driven by the profit requirements of developers, as has been the practice in our major cities in the past three and a half decades.

Change is not coming from the Government. We are reaching the point where the people will get the change that is required to provide homes, efficient transport services and good planning of the environment and physical and social infrastructure only if there is a change of Government.

The housing crisis is the biggest social problem facing us as a country. Young couples cannot afford new homes. Local authority waiting lists are longer than ever while tenants in the private rental sector face spiralling rent increases. Since the Government came to power two years ago house prices have increased by over 60 per cent and rents by over 50 per cent while there are over 20,000 extra families on local authority housing lists. All this has occurred in a period of unparalleled buoyancy in the economy. This year the Minister for Finance will have a projected surplus of £5.5 billion.

I compliment my colleague, Deputy Gilmore, on his initiative in proposing the establishment of an independent national housing commission to assess the nature and causes of the housing crisis and offer solutions. The Minister and Minister of State have refused to establish such a commission or acknowledge that there is a crisis. The Government's only response has been to publish the Bacon reports which to date have failed to increase the availability of accommodation or slow down dramatically the annual increase in the cost of housing.

In 1998 the cost of housing in Dublin increased by 31.7 per cent. Couples with two average incomes are unable to bridge the gap between the normal maximum loan and the price of a house. Based on 1998 costs, the difference is in the region of £54,000. This is a matter of grave concern and cannot be left solely to market forces.

There is a strong case for intervention. The cost of a house is made up of the price of the land, labour, materials, services and profit. The average price of a site in the Dublin area has risen by 200 per cent since 1995 and now accounts for nearly 40 per cent of the average house price. This is a scandal. If we classify ourselves as a caring society, something has to be done to ensure landowners are not allowed to accrue massive profits as a result of land rezonings or planning permissions.

Action to tackle building land speculation is essential if the problem of spiralling house prices is to be dealt with. The nettle has to be grasped. The Kenny report published in 1973 has to be revisited. The Labour Party will lead the way. I hope the Government will see the merits of addressing the issue.

Notwithstanding the Celtic tiger, there are at least 45,000 families on local authority housing lists. This is some achievement as we approach the new millennium. There has been a huge increase in the number of applicants for local authority housing throughout the country. In Fingal County Council there are well in excess of 3,000 on the housing list. The allocation from the Department has been sufficient to construct 80 and 95 new houses in the past two years at a time when there is much talk about equality, justice and fair play for everybody.

That is 20 more than the number provided by the previous Government.

When the Minister does not like what he hears, he intervenes. That is when we know the Minister is on the rack.

It is 20 houses more than the last Government provided.

The Minister is on the rack with regard to the housing crisis and people know it. The sooner there is a change of Government, the better. That would ensure equality in the housing market and in housing policy.

The number of houses in the Fingal County Council area is unacceptable and must be increased to at least 400 per annum. That is not too much to expect. There is a massive increase in the cost of private rented accommodation. In my constituency, rented accommodation costs of up to £750 per month have resulted in a huge increase in housing applications and families being forced to live in grossly overcrowded conditions. I hope the Minister responds to the positive recommendations put forward by Fine Gael and the Labour Party this evening.

Debate adjourned.
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