I want to challenge the populist rhetoric of Deputy Darragh O'Brien of Fianna Fáil at the weekend in the context of the housing situation. Personal attacks on the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, or the Taoiseach do not get us anywhere. If anything, what was said at the weekend about these members of the Government displays ignorance on the part of the Deputy in question. It is easy to play the blame game in respect of housing. The issue of housing is very serious. The housing crisis does not just affect people from one socioeconomic background. Regardless of whether they are working, people face a challenge in terms of finding affordable houses they can either rent or purchase. More and more, it is becoming evident that there is no divide regarding this problem. The idea that one has to be from a certain socioeconomic background in order to find solutions or to have the will to serve the people is utter nonsense. However, it seems to fit into a certain populist rhetoric.

It would be better if Deputy Darragh O'Brien sought to hold local authorities to account. For example, this year alone, the capital budget for the construction of house has risen from €307 million to €638 million. On the other hand, very little social housing is being built. The lack of construction of social housing is impacting on the entire market. As a result of it, people who should be in social housing are trying to find private rented accommodation. The latter is placing increased pressure on that sector. Until 2010, 6,000 social houses were being built each year. The question that arises in this regard relates to what local authorities are doing with the funding to which I refer. Fianna Fáil controls a significant number of local authorities. Is property being acquired for the construction of social housing? Have the appropriate personnel been hired in order that local authorities might have the relevant expertise available to them to allow them to build houses? Questions have to be asked at this stage. The Government is not going to build these houses. From a statutory point of view, as housing authorities, councils have an obligation to build houses. Why are they not doing so? Why are they not being held to account by councillors from other parties who have been very critical of the Government regarding the lack of social housing. We have gone beyond the point whereby this matter is being treated as a political football. There are solutions available but the must be implemented. The local authorities need to play their part and Deputy Darragh O'Brien needs to begin with the representatives from his party who are members of those authorities.

Before I call the next speaker, I wish to acknowledge the presence in the Gallery of representatives from the Historical and Reconciliatory Police Society, known affectionately as the HARP Society. The society comprises former and retired members of the police forces in the Republic and Northern Ireland and its representatives are our guests in the Seanad today. They are very welcome and I hope they enjoy their visit.

I was going to speak about another matter but I cannot let Senator Mulherin's comments on housing - and some of the inaccuracies they contained regarding county councils - pass. Ultimately, the Minister for Housing, Planning and Local Government calls the shots and provides funding for the councils. The previous Minister - he held the portfolio for some time - and current Tánaiste, Deputy Coveney, was before the House in respect of this matter. He is a fine individual and comes from a fine political family. At the time, however, I told him when he was here that his plans and the way in which he intended to spend his Department's money would not solve the housing crisis or improve the supply of housing. That proved to be the case. The facts and figures regarding what the then Minister provided when he held the position speak for themselves. I have not commented once on the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy. I afforded him due process and allowed him to get his feet under the table. However, he has been in office for ten months. In today's newspapers, the best he can come up with in the middle of a housing crisis is to talk about rogue landlords and refer to this matter as a priority. I have never heard such rubbish in all my life.

Absolutely. Hear, hear.

Fine Gael should face up to the problems that exist. There are simple reasons for what is happening. Those in the construction industry have spoken to us and have suggested a reduction in VAT. This was done in the case of the hotel industry, which has been revolutionised as a result. Why not examine this suggestion?

In the context of social housing, the reality is that costs have gone through the roof because houses need to be A-rated and engineers have to oversee their construction. A lot of land was dezoned under the spatial strategy. There are many things that make the delivery of housing much more expensive.

Local authorities are not spending the money.

I did not interrupt the Senator. I know she is worried about trying to win back her seat in the Dáil. Costs have increased dramatically and there is only one way to reduce them. Even if we do not want to take a chance and talk about developers, money and all the rest, we should seek to reduce the cost of social housing.

Social housing involves a set cost. Builders can provide such housing. When Westmeath County Council redeveloped the Ennell Court estate recently, it cost €200,000, less VAT, to renovate some of the houses. That is crazy when one considers that the council got the sites for nothing. The figures do not add up. That is why builders are not engaging. There is also the fact that the banks are not supporting them. We need to get our heads out of the sand. That is the reality. We are all here to work on this together. We supported Fine Gael with similar proposals on a previous occasion. There will have to be a serious rethink in respect of a reduction in VAT as the only way forward on this issue.