The Government is disappointed that local authorities seem to be doing deals on their own with developers over social and affordable housing.
Taoiseach Bertie Ahern said in the Dáil that under existing legislation local authorities had "discretions and flexibilities".
He told Caoimhghín Ó Caoláin, Sinn Féin's Dáil leader, that they should be getting local authorities "to actually use the principles of Part V" of the Planning and Development Act, rather than make arrangements with developers. But that was an issue for the local authorities, he said.
The Taoiseach was defending the Government's approach to social and affordable housing and pointed out that some €2 billion would be invested this year in the sector and that the needs of 14,000 families had been met.
But Mr Ó Caoláin condemned the Government's approach and said that by amending Part V of the Act, the Government "let off the hook those who had a responsibility to provide 20 per cent of all private developments for social and affordable housing". They now had the option to provide funding instead.
This "get-out clause is making an absolute ass of the entire intent of the legislation", he said.
Of the 81,000 houses built last year, just 830 were allocated to social and affordable housing, marginally more than 1 per cent of housing, and "a far cry" from the 20 per cent requirement of the legislation.
"It is an absolute indictment of the failure of you and your Government to recognise your primary responsibility to the ordinary citizens of this land and not to the interests of the developer class," he said.
Mr Ó Caoláin called on the Government to go back to the original intent of the legislation and to reinstate the 20 per cent requirement.
When the legislation was first introduced the Government pledged it would produce 35,000 extra local authority houses. That was a "sick joke for any of the 43,000 families who are currently waiting to be properly housed".
Mr Ahern dismissed this as totally incorrect and said that record levels of funding have been provided for social housing this year. It is €2 billion, which the Taoiseach said was more than double the provision when the Act was brought in six years ago.
He insisted that just over 10,000 houses were subject to Part V of the planning legislation.
Mr Ó Caoláin said: "Since 2002 more than 240,000 homes have been completed. About one-third of these were bought up as second homes or by investors. At best 1,600 houses have been provided under Part V."
But the Taoiseach said the needs of 14,000 households would be met. Further households would benefit from the accommodation schemes. "That compares with 8,500 houses just before the Act was passed."