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4 April 2002 Edition

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Houses just to live in

BY ROBBIE MacGABHANN



How many times have you seen a billboard announce 'If you see only one film this year'. Well, "If you only read one straight financial article this year, this week's Economist is a must for you".

"The houses that saved the world" is the cover story introducing the Economist's new global house-price index. The index has lots of striking features, particularly in how it relates to housing issues in Ireland.

The 26 Counties has, at over 80%, the highest percentage of households owning their own home. The state also registers the second highest real increase in house prices between 1980 and 2001. Only Spain is higher.

In terms of cities, Dublin has the highest real change in house prices, pushing past Madrid, New York and London. Also worth noting is that over the last five years, Dublin has registered average annual increases in house prices of 19%, meaning that in the lifetime of the present Fianna Fáil/Progressive Democrat government, house prices have doubled.

Dublin though, is not the most expensive city to live in and the average flat is only half the price for the same square footage in New York.

However, the most important feature of the index is easily overlooked. When it comes to taxing houses and speculators, Belgium imposes taxes and fees that can amount to 20% of the purchase price, creating an intolerable situation where property is viewed as "simply somewhere to live rather than as a speculative investment". This might be the reason, according to the Economist, why "property is much cheaper in Belgium".

Don't worry, we are dispatching special agent McCreevy to sort out these sick people and restore property to its rightful place on the right hand side of capital. And to think we let these people into the EU.

Smurfit's €10.1 million

Commiserations to Michael Smurfit; he took a 30% pay cut last year. Smurfit's basic wage, at €4.7 million, is still one of the highest salaries paid to an Irish worker. His €5.4 million in dividends propels him into the premier league of Irish earners.

Other Smurfit workers also got a good living wage. Chief operating officer Gary McGann received a 60% wage rise to €1.6 million, even though other Smurfit relatives suffered wage cuts. These included Alan, who will have to make do with €1 million and Dermot, who earned €922,000.


Shell's €3.5 billion Enterprise


"If anyone had doubts as to the value of Enterprise Oil and their Irish exploration interests they should be dispelled now," said Sinn Féin's Vincent Wood yesterday.

Wood was reacting to the announcement that Royal Dutch Shell was spending $5.7 billion to buy Enterprise Oil, including its 45% share in the Corrib field and other Irish resources.

Other competitors anxious to acquire Enterprise even though it has £800 million sterling in debts could up Shell's bid. "None of this really matters in Ireland as we won't benefit, having given away some of Enterprise's most prized assets for nothing," said Wood.

 

Ó Snodaigh - Right to housing must be enshrined in law



Speaking at a pre-election Forum on Homelessness organised by the Simon Communities of Ireland on Wednesday, 3 April, Sinn Féin candidate for Dublin South Central, Aengus Ó Snodaigh said:

"On behalf of Sinn Féin, I commend Simon for organising this Forum and for providing a very important focus on homelessness in the run up to the forthcoming general election. This is an important opportunity for us to outline our policies but also for you to assist us to develop those policies. As the people at the coalface of the homelessness issue yours is the most important input that policy-makers can have.

"I want to express my support and that of Sinn Féin for Simon's list of priorities. We agree strongly that the right to housing should be enshrined in legislation and in the Constitution. Housing is a social right but the current government does not regard it as such. This government's housing policy is not based on the rights of citizens but on the dictates of the market where the driving force is the profit motive of speculators, developers, builders and landlords.

"The ideology that has driven this government is expressed in a section of a government amendment on housing in that debate where it stated that "first time buyers have been afforded greater participation in the housing market".

"Our people are first and foremost citizens with rights not consumers with buying power. They have a right to an equal place in society and decent homes not a niche in a cut-throat housing market designed by this government for the profit of its friends.

"We in Sinn Féin fully support Simon's demand for the full implementation of an integrated strategy on homelessness. We see the primary measure needed as a real social housing programme led and funded by central government, the local authorities and voluntary housing agencies.

"The Report on Social Housing by the National Economic and Social Forum states:

'The ever-widening increase in income inequalities and resources is nowhere more evident today than in the case of housing. One of the results is that home ownership is now beyond the reach of most people on average incomes. This in turn is adding to the pressures of an already over-stretched social housing sector.'

"The NESF represents a broad cross-section of society from trade unions to employers, from farmers to local government members, community and voluntary groups. Even such a diverse group was able to agree that at the root of the

current housing crisis is the Government's failure to provide social housing - that is houses built by the local authorities and housing co-ops.

"Incredibly, given the massive need we see all around us, only around 8 per cent of all houses are being built by the local authorities or voluntary sector. This is by far the lowest share for any period in the past century. Since 1996 the number on local authority waiting lists has risen by 43 per cent.

"Spiralling house prices have driven more people onto local authority waiting lists and into private rented accommodation.

"People in private rented accommodation face poor living conditions, high rents and no proper security of tenure. Unscrupulous landlords can let sub-standard property for high rents and evict tenants with little difficulty. These landlords are being subsidised by taxpayers to the tune of over £100 million annually in rent supplements under the Supplementary Welfare Allowance Scheme.

"The Commission on the Private Rented Sector presented its report in July 2000 but the government has failed to take action even on the limited proposals of the Commission. Tenants are being left to suffer. We know that evictions are now at levels not seen since the Land War under British rule.

"New house starts were down by some 20% in 2001. We believe that the slowdown in the private housing sector provides an opportunity for the government to use the available capacity of the construction industry to attack the housing crisis by increasing resources for public sector housing.

"Sinn Féin's key housing demand is for major renewed State investment in a comprehensive Social Housing Programme, with front-loading of funding under the National Development Plan to allow the local authorities to house our citizens.

"We also call for:

A target for elimination of waiting lists by local authorities, with an immediate target of 70 per cent of applicant units to be provided with suitable accommodation within two years of their being on the list. We support Simon's call for specific targets also for the reduction of the absolute numbers of homeless people based on 2002 figures.
The control of land prices with a statutory ceiling on the price of land zoned for housing to stop speculation and reduce house prices. A Constitutional amendment to allow for this if necessary.
Statutory control of rents in the private rented sector, strengthened laws to set standards for accommodation and more resources to implement those regulations."


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