Beggar My Neighbour

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From top Taoiseach Leo Varadkar in the Dáil yesterday: Aengus Ó Maoláin

So Leo Varadkar got money from his parents for the deposit to buy his apartment (although…). Fair play to him. And fair play to you if you did the same. Let me be clear at the outset that I have no problem with that, aside from a little jealousy that that option isn’t on the table for me.

What I do have a problem with is that Taoiseach Varadkar seems to think that everyone can just go and get a loan from the bank of Mum and Dad. That or go away for a few years to save enough for a deposit, or just move back in with their parents for a few years to save on the cost of rent.

I’m personally quite angry about this, because on the first take, I am in this situation. We pay about 500 euro per month in rent more than we would be paying if we owned the place we live in.

By the way, we live 500 metres from the Taoiseach.

A deeper reflection on the Taoiseach’s comments makes me even angrier though, because it makes something really clear. The reason Fine Gael and Fianna Fáil aren’t fixing the housing crisis is that they don’t see the problem.

They find it impossible to understand that most people’s parents (if they have both or either) don’t have thirty or forty grand lying around.

They cannot imagine a circumstance where simply moving in with your parents (again if they have them) for a couple of years wouldn’t be appropriate or possible.

They simply cannot fathom that going abroad for a few years to earn money for a deposit could be disastrous for any number of reasons.

The whole Irish economy is built by and for people like Leo Varadkar. Everything is fine, because they have done and are doing very well for themselves, thanks. This failure to empathise with people who are struggling, or find themselves for whatever reason in less ideal circumstances is a serious political failing.

Ireland’s economy is built on luck – and if you are very lucky, it’s a great place to live. But if you’re not on the very top of heap, it’s bad, and it’s getting worse, as Rory Hearne wrote on Monday:

One million people in Ireland are experiencing deprivation.

Compared to before the crash in 2008, we have doubled our consistent poverty rate.

A full quarter of lone parent families and their children are living in consistent poverty.

Three quarters of a million Irish people are living on less than €14,000 per year.

All of those figures are increasing, all while official policy is to bend over backwards to allow foreign multi-billion euro companies to get even wealthier, and step daintily out of the way of the already wealthy to make more and more money off the backs of our own people.

And all of those figures are reflected in Dublin West.

Teachta Dála – TD – means a delegate from the constituency to the Dáil. It should be that every TD should represent their constituency. That means in the case of Leo Varadkar – me and everyone living in Dublin West, one of the most diverse parts of the country.

His lack of empathy, and casual dismissal of the real daily struggles of most people in Ireland and in his constituency should be shocking, and it should be remembered.

If Leo Varadkar’s comments yesterday annoyed you, then you must stop voting for Fine Gael or their facilitators and twins in Fianna Fáil.

Aengus Ó Maoláin is chairperson of the Social Democrats in Dublin West and the party’s representative for Castleknock and Blancharstown.

 

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58 thoughts on “Beggar My Neighbour

  1. b

    In case anyone actually cares what he said in the Dail

    The Taoiseach: It has been always the case that a person needs to raise a deposit to buy a house. People do it in many different ways. Sometimes people go abroad for a period and earn money. Others get money from their parents. Lots of us did. Others get money through other loans. Sometimes people stay at home for a period and raise a deposit in that way. It has always been the case that a person had to be able to raise a deposit to buy his or her own home, with the exception of one period during the boom when we had 100% loans. I would not like us to get back to 100% loans because we know where that led us.

    1. ahjayzis

      No one wants 100% loans. But house prices haven’t always been 8-10 times salary – and climbing.

      We need house prices to fall – markedly. We can’t still be harking back to the olden days of 20 grand houses when property prices are 20 times the average salary in another decade. Housing does not work on the basis of supply and demand – it never has. Through price controls, land taxation, disincentivising speculation, public housing expansion and planning changes we need to bring the price of houses DOWN.

      That’s heresy, though.

      I work in an architectural practice in London – we’re getting into the Dublin market pre-Brexit, I sat with one f the partners yesterday looking over a few sites a client has his eye on, about 15 in total, all between the canals, all brownfield, all vacant or underutilised for decades – their owners should be paying THROUGH THE NOSE for the privilege of keeping empty land in the centre of the capital city. They pay nothing, while the sale price goes up and up. When they’re eventually built on, odds are we’ll be restricted to 5 storeys – which is INSANE.

      1. Rob_G

        Some of these things the government can control (property taxes, building regulations), and some of them they cannot.

        For example, DCC is loath to zone land for high rise development. And even when it does, An Board Pleanala can overturn it or force it to reduce the number of stories, which it has done a number of times. With both of these issues, there is little that the government can do to intervene.

        1. ahjayzis

          Not true – the planning and development acts aren’t carved in stone and the minister has broad powers to override development plans.

      2. Cian

        I agree with (most of) this. We need to kick out the councillors of all the county councils that didn’t manage to get their “vacant property lists” finished in 2017 to allow them charge tax in 2019.

        The bit I don’t fully agree with is that as interest rates fall, the amount you can borrow (for a given repayment) raises. So the “2.5 times your income” of the 80s was based on 10+% interest. I’d prefer if it were based on a “mortgage repayments of 50% of your after-tax income”

        1. johnny

          “The bit I don’t fully agree with is that as interest rates fall, the amount you can borrow (for a given repayment) raises” you don’t agree with math?

          ‘So the “2.5 times your income” of the 80s was based on 10+% interest.”-wrong no correlation.

          “I’d prefer if it were based on a “mortgage repayments of 50% of your after-tax income”-what outcome do you expect ?

          1. Cian

            Sorry, I wrote that badly.

            In 1975 the average house prince in Ireland was 5.3 times the average income. This gradually rose to 6.4 times in 1980, before dropping to 3.4 times in 1989. It peaked at 10.8 in 2007 before dropping to 7.3 in 2012.

            Basing your mortgage affordability solely on income is nuts – as it varies too much.

            However, if you look at “what percentage of average wages would a 20 year mortgage cost me at the current interest rates” you can see that this percentage didn’t fluctuate as much (it went from 56% in 1975, to 77% in 1980, to 50% in 1989, to 89% 2007)

          2. johnny

            tks for trip down memory lane,but is there a point to the history lesson on avg houe price and avg incomes ?

            what do you suggest if not income based,your ability to run for a bus,your height!

            why-its pointless-do you think 20 year mtg’s making a comeback ?

        1. ahjayzis

          Adding an extra floor or two dramatically reduces the cost per unit – and thus price of a flat.

          Denser areas make things like good public transport a lot cheaper, better facilities in general, more GP practices, better maintenance of public areas, etc.

          Basically more bang for your buck. If you want a front and back garden and a gable wall move beyond the M50.

  2. Iwerzon

    Well said and exactly what a lot of people were thinking.
    There is also a generation of parents who are still paying off large mortgages and simply cannot help out their grown up children as they themselves are broke.
    I’m actually glad the Taoiseach came out with this entitled, upper-middle class nonsense (he seemed to stumble on his words when he realised he actually said what was in his head!!).

  3. Andrew

    “One million people in Ireland are experiencing deprivation”

    No there aren’t. Please don’t write this kind of nonsense as it undermines your credibility and anything valid might have to say.
    I agree that FG/FF don’t see a problem, they don’t see that the real problem is the cost and supply of housing and that ultimately that is bad.
    The two main parties and indeed most of those who vote for them; see high property prices as a good thing.
    It’s very short sighted but then, they are politicians and they know the electorate are very short sighted too with very short memories.

    1. Rob_G

      “One million people in Ireland are experiencing deprivation”

      – this also struck me as a bit high; I looked at Rory Hearne’s article and he didn’t supply any rationale as how he arrived at this figure(?)

        1. Rob_G

          Thank you.

          If neither of the authors listed their source, what else have I to go on besides a hunch(?)

          1. Rob_G

            If one of Dr Hearne’s students turned in an essay, and for the list of sources, they wrote: “they are pretty well-known texts, look them up yourself, sure”, what grade do you think they would receive?

          1. Cian

            Its funny that Dr Hearne didn’t tell us that between 2015 and 2016 over 210,000 people were taken out of deprivation.

    2. ahjayzis

      I don’t share your definition of ‘person who comments’ – so what you wrote doesn’t exist and I will ignore it.

  4. Taunton

    …but he didn’t get any money from his parents, he merely suggested it as a potential solution, along with other suggestions.

    …but carry on.

    1. Andrew

      A potential solution? You say that like he doesn’t have any control over what happens or indeed have any responsibility to provide OTHER solutions. Such as taxing vacant property to the hilt.
      The price of property needs to come down for the long term benefit of this country.
      However even our socialists don’t like taxing property in this country,.

  5. LennyZero

    “What I do have a problem with is that Taoiseach Varadkar seems to think that everyone can just go and get a loan from the bank of Mum and Dad. That or go away for a few years to save enough for a deposit, or just move back in with their parents for a few years to save on the cost of rent.”

    How can you possibly know what the Taoiseach thinks? Because that’s not what he said, the whole argument of your piece is built on a strawman.

  6. rotide

    Somehow we’ve ended up living in a post-trump world here in Ireland where stuff that Leo didn’t say is taken as gospel fact.

    1. Andrew

      I’d say they don’t mind one way or another.
      The real issue (namely high cost of housing) is not being talked about. Instead the story is about what he did or didn’t say or do and whether people borrow money off their parents.

  7. some old queen

    I don’t think that either FG or FF care about poor people because in the main, they don’t vote for them.

    But, what might change their tune is when the housing crisis hits investment. At this stage there are bound to be companies who are thinking twice about opening shop here because the wages must factor in accomodation costs.

    Otherwise they won’t get the staff, especially from abroad because disposable income is so much higher.

  8. nellyb

    A million people voted FF and FG. What’s the point of eating Varadkar – eat your ma or da, the real enablers of homelessness and other corruption-induced depravities. Tell your ma about it on the mother’s day card.

    1. Sheik Yahbouti

      Are all the commenters here below the age of 18 then, nelly? What have your parents’ vote got to do with you, or anyone else?

  9. Diddy

    There is no appetite for a fair and equitable housing sector from FG/FF..

    Its a greedy and self serving little island we occupy

  10. b

    can this be made a regular column? I miss my weekly reminder not to vote socdems since Anne Marie left this parish

  11. DaithiG

    Why bother getting a mortgage at all when you have have your uncle Ignatious give you some of his farmland in Kildare through his will. You sell that, and pay in cash.

    *cleans monocle*

  12. samantha

    Dear Leo, Just picture this, Me hey mam and Dad I need a loan to buy my own house, OH As we live on the streets in a tent in the park or a cardboard box, or in a door way or even in emergency accommodation, after all the years they both worked raised a family with nothing to show as Dad lost his job the Bank took the House and left them with Nothing. The council has no homes for us to live in, and I don’t think The Bank thinks much of our Tent to use as equity, Realistically Your policy’s are Not fit for purpose, Maybe I can come live with you, and you can lend me back some of the tax money my parents paid, so I can have a home for them to live with me, or just Think before you speak. Not everyone has or had a privileged upbringing, People are struggling to pay there own bills, STRUGGLING TO KEEP THE WOLVES FROM THE DOOR! Just saying.

  13. Mensonge

    Irish Times lead this morning: “Varadkar’s approval jumps to 60% as voters show their satisfaction” with the chilling subhead “Irish Times/Ipsos MRBI poll shows Taoiseach’s approval rating is highest since Bertie Ahern in 2007”
    https://www.irishtimes.com/news/politics/varadkar-s-approval-jumps-to-60-as-voters-show-their-satisfaction-1.3367548
    Apparently “The poll was conducted on Monday and Tuesday of this week among a representative sample of 1,200 voters aged 18 and over in face-to-face interviews at 120 sampling points in all constituencies. The margin of error is plus or minus 2.8 per cent.”
    Also “The surge in the Taoiseach’s approval rating is the most eye-catching element of the poll, but Ministers will also be heartened by the three-point increase in satisfaction with the Government.”
    It seems that what Irish people want from their government is a chaotic, cruel housing situation where the councils sold off their houses and apartments and ceased to build, the only new building is by the property developers whose record is… not great, and rents are so high that they are dissuading skilled tech workers, desperately needed by the economy, from immigrating.
    It seems they want a defunded health system where old people are stored for 70 hours on trolleys, while carers of disabled people no longer have respite provided, and those not paying insurers (the politicians’ friend) have to wait years for eye surgery or joint replacement.
    It seems they want schools that can’t keep teachers and universities that used to be listed near the top of world rankings but have sunk away now that there is no money to give lecturers tenure.
    They must want a police service where corruption at the top is being revealed by a national tribunal, where rural policing has ceased to exist, leading to a surge in robberies and violence against vulnerable older people living alone, and where gardaí have been jailed for drugs.
    By the same token, they want a drugs policy where a huge proportion of police time is taken up with policing what is in essence a health problem.
    They want such a car-addicted society that Ireland is soon to face huge fines for its contempt for any attempt to lessen pollution, and such a plastics-addicted society that the country is about to be swamped with plastic detritus now that China has stopped taking our rubbish.
    I’m baffled. What do people think the government is doing so right that they should approve it warmly?

    1. Andrew

      As has been pointed out many times before. Home owners, investors, speculators; welcome rising house prices and that has been delivered.
      Civil servants are getting their wages restored to unsustainable bubble levels again and welfare payments have risen every year.
      It doesn’t seem to matter how sustainable that is or how detrimental it may be to those that don’t own property, work in the public service, or are in receipt of welfare.
      In fact on one hand you will find a people lamenting the fact that their children have to emigrate and on the other hand delight in the rising value of their property. In fact many of these same people actively compete in the market with first time buyers when buying investment properties.

  14. Increasing_Displacement

    Repulsion, so entitled he can’t see anything outside his own comfort level.
    Billy no mates

  15. Mr. P.

    I’m confused….
    Leo stated a fact, he did not tell anybody to ask their parents for anything…

    If I tell you that some people spend money on the national lottery, am I telling you that you should also spend money on the national lottery?

    FFS.. Not everything is about you!

    1. ahjayzis

      I keep hearing this.

      If he was “stating facts” in the same way about the health service, it’d go like this.

      “We’ve always had a shiddy health service. Lots of people pay thousands for private cover to avoid our crap hospitals. Others go abroad to private clinics in the US and Switzerland. Some of us elect to die on trolleys.”

      The most important point is the full stop – no but, no if – stating the status quo is crap and not following on with your plan to fix it suggests passivity at best from a leader.

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