Oireachtas Joint and Select Committees

Friday, 9 November 2012

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion with Civic Society Representatives

11:55 am

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

I thank the representatives of the three organisations - Respond, Threshold and Focus Ireland - for their presentations. One can see that, unfortunately, this matter is not getting the attention it should. Let us hope that the media which trumpets much that is not that relevant will trumpet a matter like this. When one walks out through the gates of Leinster House at night, within half a mile one can see an amount of people lying in doorways. It is outrageous and a national scandal that one person should have to spend the night outdoors while we have banks of empty houses across housing estates. I am sure the three organisations represented here would agree with that.

Over many years, I have had contact with an organisation called Respond. There is a concern that while the role of local authorities in providing social housing is reducing, the role of the three organisations is increasing in that respect. Are the witnesses concerned about that? Are they also concerned about the costs of social leasing, the rental accommodation scheme and rent allowances? There is a huge issue building up over such costs. There is a further cost in that when many social leases run out after ten years these houses will have to be returned to the owner in pristine condition. That represents a major potential cost for the State that will come out of housing budgets.

I agree with the witnesses about rent supplement caps making people homeless. As a Deputy I have dealt with people who have become homeless because of that cap. It is a work of fiction that rents are falling in some counties. It is not happening. What is happening is that people are topping up and landlords are still charging. I had a case the other day where a landlord was charging €175 for renting a house in Portlaoise. The cap on what the tenant is supposed to be paying is €120. The woman concerned, who is a separated single parent, is making up the gap of €55 plus the minimum contribution of €35, which comes to a total of €90 out of a tiny income. She is not even on an income of €300 per week. What is happening is appalling.

In addition, there are high energy costs because the house is heated by totally inefficient electric heating. Rent and electricity would eat up her income without ever buying a loaf of bread. Those are the facts. I have gone through her income and can see exactly where she is getting caught. That case is being replicated across the State. Ministers and officials will say that rents are falling but that is nonsense. Rents are not falling, they are increasing. I can see that happening outside Dublin, including in Laois-Offaly, and I am sure other public representatives are seeing the same in their constituencies. I would like the witnesses to comment on that matter. I am very concerned about it and the fact that people are being made homeless due to the changes in rent allowance.

The contribution by Focus Ireland was very good. Social housing needs to be built outside Dublin also. Some people may say that the solution is to wave a magic wand but I would not agree. There are a number of solutions, however, one of which is to use some of the NAMA properties. We should try to get houses that are 80% or 90% finished into use as social housing as they waiting list for social housing has become longer.

At the same time, it is difficult to get on to the waiting list because the forms are 17 or 18 pages long. A bank of supplementary documentation must also be submitted with those forms, with up to 20 items that must be included, depending on a person's social and ethnic background. It is very difficult to get on to and to stay on waiting lists. There are constant reviews and some of those applying have poor literacy skills. I have problems trying to help people to keep up with this. As elected representatives, we have been around this system for years and we know how difficult it is to get on to a housing waiting list and to stay on it. There are disagreements between the Departments over the interpretation of regulations on those matters.

What sort of need is there for social housing outside Dublin? This is a good time to do this because it is cheaper to build houses. They can be built for 30% of their cost during the boom and bought for 25% of their boom time sale price.

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