Galway West TD and Chair of the Labour Party Manifesto Committee Derek Nolan believes that the next government must look seriously at ending land speculation by putting controls on the price of land in place.
Deputy Nolan said this Government has spent the last five years “rescuing this country from an unmitigated economic disaster.”
“This disaster came about because of a housing property bubble built on land speculation, profiteering and increasing costs of building land – all of which were fuelled by cheap borrowing.
He said that housing must not be viewed as a market commodity but as a social good.
“A young couple should not have to borrow ten times their salaries in order to buy a family home. That is what happened in the past because of land hoarding and property speculation and that is what will happen again in the future if we do not take steps to address it. Controlling the price of building land to address affordability in the housing market will do exactly that. Ultimately, moral values must trump market values. The housing bubble was the significant factor in the economic collapse that devastated our country. There was a culture of low interest rates, poor lending practices and portfolio expansion. It was also deemed acceptable to have to pay extortionate amounts of money just to own a modest family home,” he added.
Del Nolan said that back in 2003, the Labour Party introduced a bill to allow for local authorities to acquire development land and a method to determine fair compensation.
“The Bill was rejected by the then Fianna Fáil government, who were unapologetically pro-developer and wanted to inflate the property market as much as possible without a thought as to who would ultimately pay for it. If that Bill had been accepted at the time, the property bubble would not have inflated at such a rate and young families would not have been left so indebted to our banks as a result.
“The Labour Party is determined to ensure the mistakes of the past are not repeated. The economic recovery is underway and we have a lot to be proud of. However, we must now focus on ensuring a social recovery as well in this country.
“Homes that come at a fair price must form part of that recovery and I am determined to see it included in the Labour Party manifesto,” he concluded.
