Housing problems a serious impediment to job creation

THERE have been various indicators on this one for some time. But it is getting harder and harder to ignore the threat that the housing crisis poses to job creation and economic development.

None of this is to understate the misery of people on low incomes or trying to survive on welfare, who struggle to find a home. The misery of homeless children, depending on emergency accommodation, is especially distressing.

But everybody hopes that economic recovery can continue apace. On RTÉ radio yesterday, the IDA chief executive, Martin Shanahan, conceded that the housing shortage is raised by some potential investors they are trying to attract to Ireland. But he was understandably diplomatic in referring to Government efforts to tackle the housing problems.

After all, it is not his job to talk up problems.

Mr Shanahan did say something of note, however, as he rightly talked of IDA successes in attracting jobs. He said there were more than 100 IDA-type agencies competing for big investment projects from the greater San Francisco area at any given time.

It is a competitive business and the bar is never dropped. Issues like availability of housing at a fair price have to be a major issue.

The American Chamber of Commerce, which represents big US businesses operating in Ireland, laid things on the line over the weekend.

It warned that the housing crisis risked making the country less attractive for overseas investors.

The ‘AmCham’ members are the spine of Ireland’s foreign direct investment, accounting for more than 150,000 jobs here. So we would be foolish to ignore what they have to say.

One of the country’s biggest employers of new graduates says it has had to provide interest-free loans to help new recruits secure rental accommodation in Dublin, in the clearest signal yet that the housing crisis is threatening to choke economic development.

Today we report that the Irish head of the financial services giant, EY, is for the first time providing interestfree loans on flexible terms to graduate trainees. This is to ensure that they are able to take up placements with the firm in Dublin.

Like ‘AmCham’, EY commands attention, as it took on 248 graduates last year and is highly rated as a good employer.

The scale of the issue is becoming increasingly clear.