Varadkar won't take builders' claims apartments are financially unviable as 'truth'

Taoiseach said the housing crisis was holding the country back and causing an intergenerational division

Taoiseach Leo Varadkar said the State’s Croí Cónaithe scheme, which aims to bridge the current viability gap between the cost of building apartments and the market sale price was 'crucial' for the Government in tackling the housing crisis.

Taoiseach Leo Varadkar has said he is not going to take it as “truth” that builders cannot proceed with apartment developments because it is not financially viable.

Mr Varadkar said these were claims ministers needed to examine and if it was the case, the Government would step in further.

The Taoiseach also admitted in a round-table interview with political reporters that the housing crisis was holding the country back. He said it was causing an intergenerational division.

The State’s Croí Cónaithe scheme, which aims to bridge the current viability gap between the cost of building apartments and the market sale price is “crucial” for the Government in tackling the housing crisis, Mr Varadkar said.

“I think that [Croí Cónaithe] is going to help. A lot of builders will say to us that they're not able to proceed with apartment developments, in particular that they have permission for, because it's not financially viable.

“I'm not just going to take that as the truth. We need to examine that and make sure that that is the truth."

He said if it was true, the Government needed to step in and Croí Cónaithe is one mechanism by which it can plug the viability gap.

"I often say that there are, I think, about 70,000 planning permissions out there for new homes, mostly apartments, but they're not activated or not being built, and I want to see them under construction,” Mr Varadkar said.

In his speech after being appointed Taoiseach on December 17, the Fine Gael leader said the Government needed to go “all out” to address the housing crisis.

When asked if a Covid-19 response was needed to tackle that crisis, he said a "can do" attitude was needed.

“I think sometimes in Government we’re too willing to say that things can’t be done, because of public finances, because of State aid rules, or because of the Constitution, or because of something else.

I'm not willing to accept that, when it comes to housing. We need to turn the corner on housing, it is an emergency, it's affecting people in so many different ways. 

“It's holding us back as a country, and it's causing intergenerational division that I don't like to see.

“So it's really going to be a case of let's do everything, unless there's a really good reason as to why we can't,” he said.

The Taoiseach also said he expected the majority of the 70,000 Ukrainians who have come to Ireland to stay here for the medium to long term.

He said there were 5,000 people still living in direct provision who have status and the Government needed to find a way to accommodate those seeking protection here.

“And then also there are a lot of Irish people, Irish citizens and EU citizens that are on housing lists for a very long time," he added.

"So we need to look at that in the round and make sure that we're fair to everyone."

He also confirmed Social Protection Minister Heather Humphreys would bring a memo to Cabinet early in the new year on a fund worth €50m from which communities would benefit from having accommodated a large proportion of refugees.