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Dáil
‹ Leaders’ Questions.

Kenny report and land value capture

Summary

Sargent urges the Taoiseach to implement the Kenny report so the public can capture more of the value created by rezoning, and asks when legislation will be published. The Taoiseach supports the legislative approach, says it is being drafted and may require a referendum, and points to affordable housing projects while urging Members not to obstruct local authority building plans.

The Taoiseach will be relieved to hear I will not be calling for a recount in Dublin North this close to a general election but many people will want to know where the 1,294 missing votes have gone.

As this is the last Leaders' Questions this session in which the Green Party will have the opportunity of posing a question, I ask the Taoiseach to reflect on what his Government is elected to do. The Constitution, in its preamble, requires him "to promote the common good, with due observance of Prudence, Justice and Charity, so that the dignity and freedom of the individual may be assured". Dignity and freedom, for many, means the wherewithal to afford a house and the 2005 reality was a housing waiting list of 43,864 applicants, that is, over 100,000 people, and others mortgaged up to their eyes and in ever increasing debt. Under his Government, debt has increased from 40% of disposable income to over 130%. The total personal debt in the country is just shy of €130 billion, that is, €32,000 for every man, woman and child. Essentially, an industrial wage is owed before a person starts earning a euro.

The OECD states the housing market is overvalued by 15%. Given the average house price is €300,000 and one third of that price comprises the site price, I ask the Taoiseach to acknowledge that if that house was built on a site priced as agricultural land, that is, approximately €10,000, rather than the inflated price currently allowed, the price of the house would be approximately €210,000. Does the Taoiseach accept that by not acting on the report on building land by Mr. Justice Kenny of 1973, his Government is standing over——

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

Deputy Sargent's time has concluded.

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This is the important point. Does the Taoiseach accept he is standing over a kick-back for the builder for every house built of about €90,000? I ask the Taoiseach, over the summer, to try to square that kick-back for land speculators and developers with his conscience and his responsibilities and tell us whether he will consider at long last implementing the Kenny report on building land from 1973, as recommended by the All-Party Committee on the Constitution of 2004. A number of Deputies from the Taoiseach's party were members of that committee and I ask if he will listen to them for a change as well.

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I will answer Deputy Sargent directly on this issue. I was in favour of the Kenny report many years ago. I am still in favour of it.

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He is the Taoiseach.

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Can I answer, please? I am in favour of the conclusions of the report of the all-party committee. The report of the all-party committee states that we should be able to deal with the fundamental issues by legislative means.

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Where is the legislation?

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It is being drafted. I am pressing to get on with it and I do not disagree with what Deputy Sargent stated in that regard.

A significant number of people state that such legislation, on which I hope we will come to a conclusion over the summer, could well be challenged. If that is the case, we would need a constitutional referendum——

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Let us do it.

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——of which I also would be in favour of trying. It was put forward by the committee — we debated the matter many times in the House — that we should try the legislative route and we are trying it. The Attorney General has not given me a final version of the report, but I hope we can do it by legislation and we will try to do it by legislation.

I will try to address it over the summer. Deputy Sargent has asked me a serious question for once and I am trying to give him a serious answer.

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For once, he is trying to give a serious answer.

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I am aware he asked a serious question.

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The answer would be to tell me when the legislation is to be published and I ask him that. If the Taoiseach wants to give me a serious answer, I want to hear it. Fianna Fáil has been in Government for 20 years, apart from a short respite, and life continues to be unbearable for many of the people the Taoiseach claims to represent.

When it comes to building land, following rezoning in Shankill the value of land rose from €2 million to €200 million. If that had been done in accordance with the Kenny report, the land could have been acquired for €2.5 million. The local authorities must go cap in hand to the Minister for the Environment, Heritage and Local Government, Deputy Roche, for funds to acquire lands for housing at open market prices.

Why has the Taoiseach continued to allow the obscene profiteering, rack-renting, management company extortion and the cruel indebtedness by which people, even those with third level qualifications and good jobs who he states are doing quite well, are affected? Why has he continued to favour many people who, perhaps by coincidence, are his key supporters in the tent at the Galway Races? If, today, 4 July, I may paraphrase Lyndon Johnson, the Taoiseach's interpretation of the common good so far has depended on whether he is inside or outside that tent. As an act of good faith, perhaps when he gives me his answer he might add that he will donate the proceeds of his party's tent at the Galway Races to the Society of St. Vincent de Paul or the carers of whom Deputy Rabbitte spoke, to compensate not just for the wasting of €60 million on e-voting but also his lack of action in this area.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

Deputy Sargent, you have moved on to another question. You are entitled to a single question on one topical issue.

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That is very much a topical issue.

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Obviously what prompts this question is that Deputy Sargent has seen yesterday that 200 affordable houses were handed over for between €145,000 and €195,000.

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A drop in the ocean.

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But it is a significant development. Deputy Sargent should not see everything as a Z grade.

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Less than 1%.

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This was a considerable achievement, that——

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Not when compared to the developer's cut.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

Deputy Gogarty, your leader is entitled to hear the answer to his question.

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When the Taoiseach gives a decent answer.

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——yesterday almost 200 people got houses for €145,000 under the affordable housing initiative. We want to see far more of that.

I ask Deputy Sargent and his colleagues and every other party to help local authorities, which in so many areas of the city want to build social and affordable housing——

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They cannot afford to.

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——and are being blocked by Members of this House.

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The Taoiseach is joking.

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Members are publicly used to block it. It is sad that Deputies come in here asking for affordable housing and then use their efforts outside to block them in many parts, including the parts of the city that Deputy Sargent mentioned.

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It is shameful.

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The Government will press on with the legislation. We hope to have it ready shortly. I hope we will be able to move to deal with this issue.

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Before or after the corporate donations.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

Deputy Gogarty, your leader is quite competent to ask his own questions and he does not need any help from you. The Taoiseach without interruption.

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It is almost impossible, a Cheann Comhairle. They all ask questions every time one answers them.

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