Dublin City Councillor Éilis Ryan (Workers’ Party, North Inner City) has this morning (Friday, 3rd November) called for City Council CEO Owen Keegan to resign, in the wake of last night’s Prime Time Investigates documentary on standards in the private rental sector.

Commenting on the situation, the Workers’ Party councillor said:

“There is absolute clarity that each local authority is responsible for regulation of the private rented sector – meaning that ultimate accountability lies with the CEO, in this instance Owen Keegan.

“There have been numerous instances of serious breaches of rental standards in recent months, and no resulting commitment to increase inspections and sanctions by Dublin City Council. In fact, in advertising the Housing Assistance Payment, one of the ‘selling points’ used by the council to attract landlords was that there would be ‘no immediate checks on private rental standards,’ before payments to landlords could commence.”

More significant again, according to Ryan, is the way in which the worsening housing crisis is enabling exploitation of tenants:

“Fundamentally, what is perpetuating the ability of landlords to exploit tenants is the scandalous shortage of public housing in Dublin and nationwide.

“In Dublin, this shortage has been driven by an anti-public housing ideology amongst the city’s senior executives, including Mr. Keegan.”

Cllr. Ryan called for a fund to be established to ensure landlord’s paid for an expanded scheme of inspections, and to fund accommodation for tenants who are evicted due to fire safety issues in their current homes. She concluded:

“It is essential that regulation and inspection drives up standards in this sector. And equally, it is essential that any tenant who is forced out of their home because of a fire safety notice, has immediate access to alternative suitable accommodation.

“But it must be landlords – not the state or council – who picks up the tab.”

Cllr. Éilis Ryan (Workers’ Party, North Inner City) is proposing the motion, and said:

The council owns around 120 hectares of land – enough to build 12,000 homes at a reasonably high density. But at the moment, there are 20,000 households on the council’s housing waiting list.

Without even including the many households not on waiting lists who are in need of housing, we already have a massive shortfall. And that’s if all council land is used exclusively for public housing.

In that context, it is ludicrous to allow private developers build housing on public land, which they will then sell at outrageous prices.

Cllr. Ryan continued:

The thing about land is that once it’s gone, it’s gone. If public land is used for housing which nobody except elites can afford – and let there be no mistake, that’s what private developers want – we may as well say goodbye to the prospect of ordinary people being able to afford to live inside the M50.

The city council is currently pursuing a strategy known as the Housing Land Initiative, which would see 70% of city council owned land used for private development, with at least 50% of housing to be sold at full, market value.

Cllr. Ryan concluded:

The ‘Campaign for Public Housing’ was launched last Saturday in front of a packed room of over 150 people. It is clear where the public stands – for mixed income public housing, and an end to subsidies – whether in the form of money, infrastructure or land – for private developers.

MOTION

Dublin City Council (DCC) recognises the urgency of the housing crisis, with just under 20,000 households now on the city council’s waiting list, and an estimated c. 650 newly-formed households (net) becoming eligible for social housing each year.

The City Council furthermore recognises that land is by definition in fixed supply. The Development Plan estimates approximately 440 hectares of land is zoned and available for residential development within the DCC boundaries.

The City Council notes the following in relation to land availability in this area:

• DCC estimates (Council Questions, October 2017) that it owns approximately 120 hectares of land. Assuming a density of 100 units per hectare (DCC generally uses a range from 60-120 units / hectare), DCC-owned land could provide 12,000 units if used exclusively for public housing.
• This leaves around 320 hectares of land zoned for residential development not owned by DCC. At a density of 100 units per hectare this would yield 32,000 units, delivering around 3,200 units of public housing through Part V requirements.
• Accordingly, if all DCC-owned land were used exclusively for public housing, and all non-DCC-owned land were developed and delivered 10% of units as Part V, the public housing output would still approximately 15,200 units.

Given this shortfall, the city council adopts the following policy in relation to the land within its boundaries:

• That Dublin City Council institute an immediate ban on the use of council-owned land for private, for-profit, housing development – whether this is for rent or purchase.
• That Dublin City Council enter into immediate negotiations with all state bodies, semi-state bodies, and NAMA-appointed receivers, who own or control residential land in the Dublin City Council area, in order to increase the required Part V social housing delivery on those sites, with an initial aim of securing the full use of the land for mixed income public housing.
• That Dublin City Council commits itself to ensuring a mix of incomes on all sites, but that this should be done through the use of innovative not-for-profit housing methods – such as public cost rental.

Reacting to the figures released by the SCSI, Cllr. Éilis Ryan (Workers’ Party), said:

“It is astounding that, in the midst of a housing crisis, we continue to rely on what is clearly the single most expensive method of delivering housing.

“If, as the SCSI claim, it is not profitable to build housing, then those who are interested in making profits should just move on. It’s not our job to prop up a failing business model with public money. We have done that plenty times in the past, and it has never solved anything.”

Cllr. Ryan said that, even using the SCSI’s own figures, its clear that it would be a full 100% cheaper for the state to build housing directly, saying:

“The state can immediately knock almost half the costs off the SCSI’s estimates, if it builds housing itself. We immediately make savings on developer contributions, profit margins, risk and contingency funds, selling costs and, crucially, the cost of land – since local authorities own their own land already. Given the state receives back the VAT it pays, VAT costs associated with building are also effectively neutralised.

“Already, removing these costs halves the build costs. So why, at any time let alone during a housing emergency, are we not simply building housing ourselves? The answer is that this government, like every government before it, is committed to propping up developers and builders at all costs.”

Cllr. Ryan concluded by calling for Dublin City Council to retain public land for use exclusively for public housing, saying:
“What this teaches above all else is that the single most useful thing Dublin City Council can do to tackle the housing crisis, is simply for the state to build public housing on public land.”

Speaking following the Minister’s comments today (Friday) at the annual conference of the National Association of Principals and Deputy Principals, Cllr. Éilis Ryan (Workers’ Party) said:

“In a country which claims to provide ‘free’ third level education, it costs an astronomical €12,000 in postgraduate fees alone to qualify as a secondary school teacher.

“When you add to this a minimum of €12,000 a year in living expenses, a student wishing to become a secondary school teacher would need close to €40,000 in cash just to qualify. This is exacerbated by the fact that postgraduate fees do not qualify for maintenance grants, and the work experience element of teacher training in this country is unpaid.”

Cllr. Ryan said that teaching was effectively becoming yet another profession which only the most privileged could afford to enter, saying:
“Most students leave their undergraduate studies with significant debt or, at best, having used up whatever financing their parents could afford to give them.

“Almost none would be able to afford the €50,000 required to then go on to train in secondary teaching.”

Cllr. Ryan said that enabling young people to enter the teaching profession would be a far better use of the state’s resources than Minister Bruton’s proposed retraining scheme, saying:

“The combination of prohibitive fees, and a two-tier pay system which discriminates against young teachers who do qualify, means the majority of people who might like to become teachers simply cannot afford to.

“Perhaps the Minister should look at the obvious causes first, before introducing mad-hat schemes.”

Speaking on the matter, Cllr. Éilis Ryan (Workers’ Party, North Inner City Dublin) said:
“The utter discrimination imposed on women both by 2012 pension changes, and by historic ‘anomalies’ in how women’s work was treated, are only the most current example of the brewing pensions’ crisis Ireland faces.

“Even if the government does find a solution to this particular issue, what it demonstrates is the need for proactive overhaul of pensions generally in Ireland.”

Cllr. Ryan said that a mandatory pension scheme would have the dual benefit of providing income security for older people, along with a fund which the state could invest wisely and productively:
“In 2015, some 38,000 elderly experienced deprivation, an increase from the previous year. This is bound to increase as the population ages, and as the effects of an ever-weakening pension system – both private and public – are felt by those who retire in the coming years. A mandatory state pension scheme for all workers and employers is the only solution to this problem.

“Such a scheme would also have the benefit of providing a badly-needed investment fund for public investment. For example, a contribution at 6% of salary would provide the state with €1.6 billion annually in strategic investment. If invested in industrial development, it would lead to 30,000 jobs directly, and many more indirectly by stimulating economic growth.”

Cllr. Ryan concluded:
“It is time for Irish governments to end the permanent crisis non-management. It is time for bold, long-term solutions to the country’s gravest problems. One of these must be a mandatory state pension scheme to take care of the country’s older population in decades to come.”

The Workers’ Party has said that the €750 million Home Building Finance Ireland (HBFI) initiative announced yesterday by the government, is just a cash cow for developers which will not result in any more homes being built.

Gavin Mendel-Gleason, Dublin North West representative for the Workers’ Party, said:

“The government aims for the €750 million fund to enable the construction of about 6,000 homes through private developers. This is only marginally higher than the 5,000 homes the same amount of money could build directly.

“But instead of building homes which we own, which will be affordable, and which present no risk, the government has opted to speculate its cash on property developers who haven’t exactly covered themselves in glory in the past.”

Mendel-Gleason said the government’s portrayal of the fund as a purely commercial arrangement, and not a giveaway to developers, was misleading, saying:

“If banks aren’t willing to bear the risk of lending to developers, what makes the state so sure its a good bet? Its as if we are planning for another property crash, except this time instead of having to bail out property developers from the banks, we will already be the lender – and we will be the ones who get burned.

“Lending state money to private developers means we get all of the risk – and they get all of the profit.”

Mendel-Gleason concluded by saying that no amount of lending or subsidies to private developers would make housing affordable in Ireland:

“Throughout the Celtic Tiger, supply increased and increased, but prices never came down. We are setting off on the same road again – bankrolling developers who can and will continue to charge through the nose for the homes they build.

“The only solution is for the state to begin building public housing for all.”

ENDS

For information contact Gavin Mendel-Gleason (085-1368737)

Cllr. Éilis Ryan (Workers’ Party, North Inner City) said:
“The government’s Fiscal Outlook, which it published yesterday with the budget, shows that government consumption – i.e. overall spending on public services – will rise by less than €1 billion between 2017 and 2021. At less than 3% growth, this is well below the Government’s estimation of 5% inflation at 5%.

“What this means is that, while Minister Donohue is keen to appear to be reversing the recession’s horrendous cuts, he is in fact not even allowing our public services to break even. In real terms, as the cost of goods and services grow with the economy, the money he intends to allot to health, education and other services won’t be enough to prevent even further cutbacks.”

Cllr. Ryan said the figures prove that Fine Gael’s cutbacks are ideological – not driven by necessity:
“We keep hearing this myth that the cutbacks happened because of the recession. And now we hear the myth that they are being reversed because the economy is growing.

“But the government does not even intend to spend enough on public services to keep up with inflation. This is further proof that Fine Gael’s cutbacks are pure, conservative ideology.”

Cllr. Ryan concluded by saying that the budget’s fiver-a-week
“Most people, both working and not working, will see a rise of around five euro a week in their take-home income. When compared to rising housing costs and, now it would seem, the government’s intention to continue reducing funding for public services, a fiver a week is of little use.

“A fiver a week can’t improve the quality of life of someone living homeless in a b&b with their kids, or on a waiting list for years for a hip replacement.

“What can do that is investment in decent public services. Clearly Fine Gael still havent learned that lesson.”

ENDS
For information contact Cllr. Éilis Ryan (086) 3108553

Cllr. Éilis Ryan

Responding to the announcement, Cllr. Éilis Ryan (Workers’ Party, North Inner City) said:

“It is offensive to suggest that young people should no longer assume they have the right to a secure home. And this is what Minister Murphy is effectively doing.

“The “shared living” arrangement which he is suggesting as a route towards increasing housing for young people, would mean fully grown adults sharing kitchens and living rooms with dozens of other people. This may be an arrangement some choose, but it is not anybody’s definition of a home.”

Cllr. Ryan also pointed out how expensive the proposed ‘co-living’ arrangements are elsewhere, saying:

“Minister Murphy pointed to ‘the collective’ in London as an example to be replicated. But rents at ‘the collective’ start at over €900 a month, for less space, autonomy and rights than traditional rental accommodation.

“Even by London’s standards, this is far from affordable. So why is the Minister telling us it will be affordable here?”

Cllr. Ryan concluded that, yet again, the government is doing everything within its power to avoid building public housing, saying:
“This ‘co-living’ proposal is transparently driven by the interests of developers. Who else other than a developer benefits from squeezing more adults into the one living space?

“It is laughable that the Minister expects us to believe that such ridiculous arrangements are more likely to provide decent homes for young people than the obvious solution – building public housing.”

Responding to news that the State has been referred to European Court of Justice (ECJ) for its non-compliance with the Commission’s verdict on the Apple tax case, Éilis Ryan, Workers’ Party councillor in Dublin, criticised the government and demanded that it drop its appeal.

Ryan said:

‘The government is throwing good money after bad on legal fees in pursuit of this appeal. It should drop the appeal immediately and move to collect the outstanding tax money owed to the state. This money is badly needed for expenditure on public services for ordinary citizens and taxpayers who make more than their fair share of a contribution to the public purse while big multinationals dodge their taxes.’

Ryan continued:

‘This appeal is borne out of class interests – the interests of those who benefit from our tax haven economy and whom Fine Gael are beholden to – the multinationals, the legal firms, the accounting firms. It goes against the interests of the majority of people in Ireland who could benefit massively from the €13 billion being collected and invested in a programme of state investment in jobs, housing and childcare.’

Ryan concluded:

‘Such a state investment programme could improve the quality of life of the majority of people in Ireland and begin to move the economy away from it’s current function as a haven for tax-dodging multinationals. Unfortunately the government seems intent on pursuing an economic strategy purely based on bending the knee to large multinational firms. When the European Union and its institutions are criticising you for pursuing a strategy that is too neoliberal, it is past time to reconsider.’

Responding to reports today (Tuesday), Cllr. Éilis Ryan of the Workers’ Party said:

“European interest rates are so low, that the Housing Finance Agency is already in a position to lend to local authorities to build housing at rates of in and around 2%. In that context, the idea that NAMA’s proposed 4-5% interest rates are ‘cheap’ is absurd.”

Cllr. Ryan continued by saying that ultimately, whether housing was private or public, the costs of financing would be borne by ordinary workers and families:

“The government and NAMA will no doubt defend this lending plan by saying it is targetted at commercial for-profit builders.

“But at the end of the day it is ordinary working people who will bear the cost of these interest rates – whether when purchasing a home, or through the cost to the state of buying Part V social housing from developers.”

Cllr. Ryan said that any funding which NAMA has is effectively state money, and should be used as such.

“NAMA and any money which it accumulates is without doubt state-owned. It is the Irish people who paid for its activities through the nose, after all.

“With that in mind, a far more cost effective plan would be for NAMA to lend what money it has for the building of a drastically expanded supply of public housing, at interest rates in line with those offered by the HFA. Cost rental public housing, available to all income levels, can cover its own costs and, as such, is a viable commercial enterprise for NAMA to undertake.

But this government remains intent on NAMA giving property developers yet another leg up.”