Sir, – In “Where will FF/FG find common ground with Labour and Social Democrats? Housing” (Analysis, December 3rd), Jack Horgan-Jones quotes UCD academic Michael Byrne as saying that there are clear similarities between the centre-left and Fianna Fáil and Fine Gael. These are “non-market” or “State-driven housing” which are the main plank of more centre-left approaches in other countries, and these have now “been embraced by Fianna Fail and Fine Gael to a significant extent”. This is correct. The outgoing Government was spending around €9 billion to €10 billion a year in subsidies in the housing marketplace.
While the outgoing Government’s policies were deeply State interventionist, they are totally the opposite to what the left would do, and what should be done, in housing policy. The housing crisis is driven by lack of supply. The effect of Fianna Fáil/Fine Gael policy is to use State money to boost demand, not supply. Thus it is having unintended outcomes, some nasty and unwelcome. It is pushing up prices. That helps existing homeowners, speculators and builders, but not those seeking homes.
The left, on the other hand, want more State intervention in direct house building. This was done by Fianna Fáil and Fine Gael for decades in the past – successfully. They boosted housing supply.
So while there is major State intervention in housing, the policies of the centre right are distorting the market. A free market – no housing subsidies – might even be more successful than the current, costly myriad of market-distorting state subsidies. The best policy that will work for all is to use taxpayers’ money to build directly and to cease privatising the houses. – Yours, etc,
PAUL SWEENEY,
Dublin 6.