Tánaiste Leo Varadkar has raised the possibility of Government intervention in the housing market to address the slowdown in commencements caused by rising construction costs.
Mr Varadkar said that the situation that will face him when he replaces Micheál Martin as Taoiseach on December 17th would be “challenging” but he would focus on improving the housing situation.
He said that there had been a major recovery in residential constructions and that between 25,000 to 28,000 new homes would be built this year, the highest figure, he claimed, “in decades”.
“What we have seen last few months is a fallback, and that is a matter of concern. It’s not driven by anything the Government as decided or by Government policy.
We’re heading for the second biggest fiscal disaster in the history of the State
Housing in Ireland is among the most expensive and most affordable in the EU. How does that happen?
Ceann comhairle election key task as 34th Dáil convenes for first time
Your EV questions answered: Am I better to drive my 13-year-old diesel until it dies than buy a new EV?
“It is driven by the high cost and non-availability of building materials, such as concrete, steel, timber,” he said.
Speaking to the media as the Fine Gael Ardfheis commenced in Athlone, Mr Varadkar said: “As we stand here today, tonight, there is planning applications granted for 70,000 new homes and apartments and I want them built in the next two years.
“That’s what we are going to have to figure out. There is a viability issue, and we acknowledge that, particularly when it comes to apartments, but sometimes for housing developments.
“The current circumstances with the cost of materials and the unpredictability around interest rates, we need to assess that and work out how Government interventions might make the viability equation change the balance back in favour of construction again.”
He gave a sober assessment of the economy. He said the country faced a period of great uncertainty at the moment with war in Europe, and also with inflation, and some of Ireland’s closest economic partners going into recession.
“I think next year or two is going to be challenging. But politics is always challenging. Obviously, we want to focus on things that are most important to people.
He cited the cost of living and improving the housing situation saying he particularly wanted “to make home ownership a reality for people”.
Turning to Fine Gael he said that it was “a tried and tested party in Government” and had dealt with the many crises the State has faced over the past 12 years.
Asked about differences that might emerge with the Green Party over the Supreme Court ruling on the Canadian trade deal (Ceta) or on a Liquid Naturalised Gas (LNG) terminal he said there was unanimous agreement between the Government parties on Ceta.
He accepted that both parties had different views on LNG but said the energy crisis and the war on Ukraine might have shifted option on that matter.
“I think a lot of people, including some people in the Green Party, are coming around to the idea that we do need some form of gas storage.
“At the moment we have 90 days worth of petrol and diesel and oil. If for some reason our supplies get cut off when it comes to gas, we’re highly dependent on a pipeline between the UK and Ireland ... to keep the lights on.
“I think a lot of people are coming around to the idea that having gas storage and LNG makes a lot of sense.”
He said the form it took was a different matter, saying there was a big difference between a commercial LNG terminal and one that was backed by the State for security of supply.
Asked about the possible demise of the ‘big two’ parties, and former Taoiseach Bertie Ahern’s comments about a possible Fine Gael and Fianna Fáil merger in the future, he said he believed there was an independent future for his party.
“In the late 1940s, in one election, we only had 19 per cent of the vote. I remember in my own lifetime and 2002, when people thought that Fianna Fáil was in the ascendancy and there would never be another Fine Gael Government.
“We are in a much better place than we were then. We are a party and a Government party about to resume leadership of the Government. I think while there will be ups and downs, this is a party that’s been around for almost 100 years. And will be around for another 100.”
