Housing viability in Mayo
Deputy Lawless says high construction costs are suppressing housing development in Mayo and excluding ordinary families and self-builders from support schemes. The Tánaiste says housing must be addressed nationally and county by county, and will seek engagement with Mayo County Council.
The Tánaiste has acknowledged that there is a viability issue in terms of apartment construction. However, the Government has ignored the fact that this issue is having an impact right across the construction sector. That is why we have the paradox whereby we have a housing crisis but so little development, particularly in rural counties like Mayo. Housing commencements for the first six months of this year are among the lowest in a decade. I know small and medium-sized builders in County Mayo who would be willing to build but who simply cannot afford to do so because of construction costs. I know families who have jobs, mortgages and planning permission that simply cannot afford to build at the moment. That is the viability gap that exists right across the construction sector. Meanwhile, the Government took in over €3 billion from VAT on construction materials and services last year. Development contribution levies, connections to services, etc., are driving the cost of construction and choking housing delivery.
I ask the Tánaiste not to refer to housing schemes, because these do not exist in Mayo for middle Ireland. The affordable housing scheme delivered five units. There were no cost-rental units in Mayo over the past number of years.
Comment on this
Why has the Government ignored middle Ireland and ordinary families across Mayo? Why is it ignoring couples who choose to self-build as well? These people are totally locked out of housing schemes and so on.
Comment on this
I will try not to do what the Deputy asked me not to do. We obviously need to look at the housing situation nationally but we also need to work locally, county by county, in relation to housing. That is what we are trying to do. It is what the Minister of State, Deputy Cummins, and the Minister, Deputy Browne, are trying to do. The Taoiseach and I will be interacting with a number of local authority chief executives. I will see if we can engage with the chief executive of Mayo County Council as well. Even in a country as geographically small as Ireland, there can be certain ways that local authorities and national government can work together to try to advance a response to the housing challenges. I would point out, though, that we are seeing in Mayo, for example, one of the largest drawdowns in the country of the vacant property refurbishment grant. The latter is a practical measure that is helping.
On the viability issue, we have to try to get the balance right. We felt it was a prudent use of taxpayers' money for apartments. We thought the need in that regard was more acute in terms of the viability issue and a better use of money as opposed to a wider tax measure on housing. Such wider measures have not always worked in the past.
I will mention schemes, but they will be the only ones. The first home and help to buy schemes have a lot of relevance in County Mayo, and perhaps even greater relevance there or in some counties that are even farther away from Dublin. I will be happy to have a proper conversation with the Deputy on the matter.
Comment on this
They are available for self-builds too.