Government criticised for '€450m giveaway' to developers

Sinn Féin's housing spokesperson Eoin Ó Broin described the plan as "brazen" and "the most quintessential Fianna Fáil policy we have seen since the halcyon days of the so-called Celtic Tiger".

The Opposition has rounded on Housing Minister Darragh O'Brien, lashing out at his Croí Cónaithe scheme, which will provide up to €144,000 per apartment to developers. Picture: Gareth Chaney/Collins Photos

The Government has been strongly criticised for providing a "€450m giveaway" to developers at a time when families are struggling to heat their homes and put food on the table.

The Opposition has rounded on Housing Minister Darragh O'Brien, lashing out at his Croí Cónaithe scheme, which will provide up to €144,000 per apartment to developers.

The support aims to deliver up to 5,000 apartments in Dublin, Cork, Limerick, Galway, and Waterford that have planning permission but have been deemed not economically viable to build.

Social Democrats housing spokesperson Cian O'Callaghan said the "off-the-wall" scheme would simply guarantee profits for developers.

Social Democrats housing spokesperson Cian O’Callaghan. Picture: Leah Farrell / RollingNews.ie

"Not only does the State bail out developers when property prices collapse, it now bails out developers when apartment prices have reached all-time highs," he told the Dáil.

People across the country are struggling to heat their homes, put food on the table, and pay rent and bills. What planet is the Government on that it thinks it is OK to use public money to fund a €450m giveaway to developers?"

Instead of providing funds to developers, he suggested the State should buy out the sites and planning permissions which would provide the additional supply needed and would create downward pressure on rents and house prices.

Responding, Mr O'Brien said there is a dearth of apartments to buy in core urban areas, but there is a high number of planning permissions already granted that could meet much of this supply if activated.

He said the planned scheme is a short- to medium-term measure aimed at increasing the supply and stressed that those looking to buy a home would benefit from the measures.

He said that where an apartment costs €350,000 to develop but the market rate is €250,000, then the person buying it will pay €250,000, with the State providing the remainder.

Sinn Féin housing spokesman Eoin Ó Broin. Picture: Gareth Chaney/Collins

Sinn Féin's housing spokesperson Eoin Ó Broin described the proposal as the "craziest housing scheme" he has seen in his six years as a TD.

It is almost as if the Government has decided that is it actually just going to do something so big, grand, and brazen, in terms of transferring taxpayers' money directly to developers, and that because it is so fantastical, the media, the Opposition, and the public will not latch on to it," he said.

"This is the most quintessential Fianna Fáil policy we have seen since the halcyon days of the so-called Celtic Tiger government."

Richard Boyd Barrett accused the Government of returning to the "utterly disastrous developer-led policies" that led to the economic crash in 2008.

Independent TD Sean Canney argued that housing should be development-led and not developer-led.

"If the €450m in funding was made available in my constituency in Co Galway, it would build the infrastructure for the wastewater treatment plants that we need in our towns and villages in order to build houses."

Referring to the number of short-term holiday lets available in comparison to long-term rental properties, Aontú leader Peadar Tóibín said: "We have an incredibly ludicrous situation in which families are staying in hotels and tourists are staying in homes."