ESRI housing report and building land costs
The Minister said the ESRI report’s broad recommendations were under examination. Deputies challenged him over rising house prices and land costs, attributing increases to speculation; the Chair ruled that the discussion must remain within the question’s scope.
asked the Minister for the Environment if he will make a statement on the recommendations contained in the ESRI report on housing, particularly those relating to the cost of building land.
Comment on this
I take it that the Deputy is referring to the report entitled "The Irish Housing System—a critical overview" which was published last month by the Economic and Social Research Institute.
Many of the recommendations contained in the report are couched in broad general terms which will require detailed consideration. The recommendations are being examined by my Department, in conjunction with requirements made in recent years following housing research work done by An Foras Forbartha and the National Economic and Social Council.
Regarding the cost of building land, I indicated in my reply today to Question No. 7 from Deputy Quinn that this general issue is under active consideration in the Department. I referred to the complex constitutional, legal, administrative and financial factors involved and said that careful consideration has to be given to the effect possible solutions may have on the building industry and on employment in that sector of the economy.
The ESRI study re-emphasises what I have been saying regarding the danger in acting without full and adequate information and that decisions based on inadequate consideration of all the relevant facts and issues could have a serious effect on the building industry in the short- and medium-term and on the Government's programme of job creation.
Comment on this
In view of the fact that the cost of housing since the Minister took office has increased by approximately 40 per cent and that the combined increase in the cost of building materials and labour has been less than 10 per cent, how does the Minister account for the increase of the additional 30 per cent over that period?
Comment on this
On the question of houses there has not been a 40 per cent increase. It worked out last year—it was very high, I admit—at 24 per cent, not 30 per cent.
Comment on this
I am talking about 1978. It was 24 per cent. Towards the end of last year there was a steadying effect on the market, particularly in the last two quarters of the year, when it came down to something like a little over 3 per cent in the third quarter and .3 of 1 per cent in the last quarter. It has not continued to rise as it did in the first and second quarter of last year.
Comment on this
The Deputy is referring to the price of houses and I am putting the record straight.
Comment on this
If the approximate increase has been 40 per cent and that of building materials and labour combined has been less than 10 per cent, how does the Minister account for the increase?
Comment on this
The fact that the Minister finds it politically embarrassing does not make it irrelevant.
Comment on this
We should be grateful that he is there at all. He has someone else standing in for him a lot of the time.
Comment on this
Would the Minister not say that the excessive increase is due to speculation and allowing people to speculate in building land and that this has been encouraged actively by the Government?
Comment on this
I am calling Deputy Keating. The question on the Order Paper is to ask the Minister for the Environment if he will make a statement on the recommendations contained in the ESRI report on housing, particularly those relating to the cost of building land. I cannot allow a broad discussion on housing on that, whether the Minister is embarrassed or not.