It’s the theme of themes. The most structural problem, the one that most worries young people and less young people, the one that can most influence social peace, economic growth, the fight against prejudice and even voting for undemocratic projects. It is also a Regime issue, an enshrined constitutional right and, I believe, a concern of the current government. This is my contribution so that the topic can be discussed on slightly different bases, more practical and less ideological or, if you prefer, theoretical.
The housing crisis has already helped to bring down regimes, here and abroad. I’m not absolutely sure that the Monarchy would have fallen like a pack of cards if there hadn’t been a very serious problem of overcrowding and lack of conditions in the homes of the majority of Portuguese people. I’m also not sure, despite the political instability of the 1st Republic, that the Estado Novo could have had an open path to conquering the streets if the housing problem had been effectively resolved. Interestingly, Salazar made the matter a priority. The birth of LNEC, which would later give rise to LNETI, and the search for solutions through the biggest figures of the Instituto Superior Técnico, founded at the beginning of the Republic, were accompanied by investments that the regime sought that would not burden the State Budget – through investments from mutual corporations such as Crédito Predial Português, Montepio, Mútua dos Pescadores and the Lawyers’ Pension Fund. Salazar paid them interest and no one was harmed.
Let’s see and without further context or repetition of tired arguments that we know by heart. The housing crisis will only begin to be resolved if there is courage for true reform. Not the word that is always applauded in speeches, but an effective and transversal change.
The housing crisis cannot be resolved without changing the PDM and the draconian limitations imposed by the National Network of Protected Areas (RNAP) through its planning plans. We cannot jeopardize the ecosystem and we cannot stop defending the environment, but any reform is impossible without opening up the possibility of having more places to build. There are protected sites that would not remind the devil.
The housing crisis cannot be resolved without strengthening the responsibility of local authorities. OE funds must be increased in exchange for each municipality’s commitment to build a minimum number of houses. The roads are built, the houses are not. Local authorities can and should sell land to construction companies by defining the rules and, naturally, having control over the final price – limiting speculation and corruption. This is a fundamental theme for the new National Association of Municipalities.
The housing crisis will not be resolved if the State does not change VAT. The payment of VAT must provide for differences between those who build to sell or those who buy for their own use. It seems to me that houses are a first need, the first of needs, reducing it to six percent would not seem excessive to me. Where does the money come from, some will ask.
Of a new distribution, but of financial partnerships that can be virtuous – where cooperatives, always close to the populations, will certainly be at the forefront. Or allocating part of the money generated by investments in the Financial Stabilization Fund for investment in housing. It would be less speculative than any application, however conservative it may be. Real estate has profitability rates between 35 and 50 percent and is more valued than ever. I would say it was a way of increasing the revenue available in Social Security and, at the same time, being part of the solution to a regime problem.
The housing crisis cannot be resolved without changing the price of materials. The materials we use are too expensive, much more expensive than in Spain. We have a craze for stone and there are less expensive and high quality materials. We urgently need to desacralize our tendency to be exaggerated and pharaonic. And, finally, the housing crisis cannot be resolved without a policy to support the interior. We have to create the conditions for the interior to grow, for the country to grow uniformly. With those who were born here and with those who want to be Portuguese. Decisive conversation that I will save for next week.
As president of a large agricultural fund, I have responsibilities and the desire to be part of the solution. Next year will be a priority for Caixa de Torres Vedras, we will do everything in our power to contaminate the disease with a future and hope. The Earth is moving, the Foucault Pendulum is there to confirm it, but we have to do our part.
President of the Torres Vedras Mutual Agricultural Credit Bank
manuel.guerreiro@ccamtv.pt