Sir, – “Any politician aiming to make the purchase of houses more feasible must accept that to do so requires accepting repercussions that will be profoundly detrimental to some or all of us” (Brian O’Brien, Letters, January 1st). The points put forward as potential approaches to tackling the housing problem appear to misrepresent the real situation.
The Central Bank relaxed lending standards one year ago for first-time buyers with no ill-effect on our financial soundness. Equating that approach with the first step to an economic collapse and bailout is excessive.
Suggesting that higher wages would lead to a reduction in investment from foreign multinationals and a rise in unemployment is inaccurate. Major foreign multinationals are not located in Ireland for cheap labour but are attracted to access to the EU, our effective corporation tax rate, political stability, and a skilled and English-speaking workforce. Further, the letter fails to mention the widely accepted solution of promoting supply to tackle the housing issue. In fact, not solving the supply issue may have a larger impact on disincentivising foreign investment. While there are numerous ways the Government can address the supply of housing, and is doing so, it is a highly complex problem exacerbated by worldwide forces beyond its control, such as global inflationary pressures on building materials.
What the Government can readily do is address the issue of affordability through taxation. This can directly increase take-home pay and one’s ability to save initially and service debt thereafter.
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To frame affordability as an unsolvable problem without dire consequences is wide of the mark. Material decisions affecting society, economic or otherwise, will always have trade-offs. That much is definite. What is far from definite is that there are no policies we can take to increase housing affordability without unduly hurting those that already own a home. Searching for effective ways to find that course of action should always be at the forefront of our thinking. – Yours, etc,
KEVIN McLOUGHLIN,
Ballina,
Co Mayo.