Record output in low-cost housing

SENATOR John Paul Phelan’s claim (Irish Examiner letters, July 19) that the Taoiseach’s plans for the creation of low-cost housing are a betrayal of Irish people is both harmful and misleading.

The truth is 2004 was the 10th year of record output, with almost 30% of the country’s total housing stock provided since Fianna Fáil came into government in 1997.

Senator Phelan (FG) makes reference to the Harcourt Terrace Lane scheme which involved the State swapping its 0.4-acre site for social and affordable houses in west Dublin.

This Harcourt Street site could only accommodate 30 housing units compared to nearly 200 houses in Clondalkin and city west, 140 of which will be delivered in 2005, and the remainder early in 2006. This pilot scheme will ensure the accelerated delivery of affordable housing.

The Affordable Homes Partnership, has been established to progress the delivery of affordable housing in the greater Dublin area, with particular reference to the Dublin metropolitan area, giving a more coordinated structure that can speed up implementation.

Making house purchase more affordable for young couples, in particular, is a real priority for the Government.

Since 1997 over 10,400 households have benefited under the shared ownership and affordable housing schemes and 42,000 new social houses have been built, either in the local authority or the voluntary cooperative sector.

We introduced stamp duty changes in the last budget, targeted at the first time buyer. We have facilitated the introduction to the market by Bank of Ireland of an affordable mortgage product with substantially lowered deposit requirements.

This opens up the possibility of a significant reduction in the direct entry costs for first-time buyers.

We have enacted new legislation to facilitate the sale of affordable units by developers and builders directly to purchasers, with clawback arrangements to prevent profiteering.

Mr Phelan accuses this Government of moving at a snail’s pace and failing to solve the housing problem. This is ironic given that when his party was last in government with Labour, local authority housing output actually fell by 11%, a fact he conveniently chose to forget.

Noel Ahern, TD

Minister for Housing and Urban Renewal

Department of Environment, Heritage and Local Government

Custom House

Dublin 1

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