Borrowing limit up to provide more for social housing

Borrowing limits for the provision of social housing will increase from £1.5 billion to ¤6 billion under new legislation introduced by the Minister of State for Environment, Mr Bobby Molloy.

The Housing (Miscellaneous Provisions) Bill will mean that the State's Housing Finance Agency will be able to borrow more to provide finance to local authorities to increase the housing stock. The legislation also gives housing authorities and voluntary bodies clearly defined powers to build houses for sale at an affordable price to eligible customers.

The Minister said the Bill was aimed at increasing social and affordable housing provision and pointed out that some 216,000 new houses had been built in the past five years, which represented 18 per cent of our total housing stock.

However, Fine Gael's housing spokeswoman, Ms Olivia Mitchell said that while the Government "may boast about increased housing output in 2001 but that output is the result of planning and investment decisions made at least five years ago".

She said that "sustaining the level of supply, which is required to meet demand for the next five to 10 years depends on decisions being made now. Yet both buyers and builders have been bewildered by ever shifting Government policies."

The Dublin South TD said "the fact that the Government has reversed almost every single housing policy decision it has made since it was elected does not inspire confidence or address the tragedy facing more and more people who have no possibility of providing for their own accommodation needs.

"Placing yourself and your family on a council list cannot and should not be the housing solution for the majority. The fact that increasingly it is the only option for so many young people is causing huge human misery and family stress."