A dramatic change is needed in the Government’s housing strategy so that money for social housing goes towards social housing and not into developers’ pockets.
This is the call Labour councillor Derek Nolan will be making at his party conference in NUI, Galway on Saturday, when he will urge delegates to support his motion for a change in the strategy.
“My motion to conference will call for funds to be diverted towards the purchase of assets that the State will enjoy for years to come,” he said, “not wasting money propping up builders and developers.”
Cllr Nolan is concerned that money is being diverted away from schemes that provide for the purchase of residential properties in favour of leasing empty housing stock from developers and builders under the Social Housing Leasing Initiative.
The Labour Party has referred the scheme to the Comptroller and Auditor General who has indicated that an in-depth investigation is warranted.
Cllr Nolan accused the Government of not giving “any real consideration” to the “merits of leasing over purchase”.
Nationally, some €20 million was set aside in 2009 to lease properties on a 10/20 year basis, with substantial sums to be allocated in future years also. However with house prices having dropped considerably, Cllr Nolan feels it would “make more sense to buy the houses as a long term asset”.
He also pointed out that the only fund which received an increased allocation is the Rental Accommodation Scheme, which provides support for people renting in the private sector from landlords, developers, and builders.
“There is an acute need for supports like this, but the scheme should never be more than a stop-gap measure,” said Cllr Nolan. “It has no place in any long-term strategy to tackle housing needs.”
