Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I join the Minister in congratulating the Chairman and thank the committee for the opportunity to engage with it. I will concentrate particularly on the housing programme.

The significant challenges faced in the housing area within the current budgetary climate are clear to all. Therefore, in allocating the resources likely to be available to me in 2013, I intend to continue to focus the necessary adjustments on areas where there is scope to maintain output through more flexible approaches and to continue to direct the available capital resources substantially towards the most vulnerable and disadvantaged sectors.

In terms of the delivery of social housing,the Government's housing policy statement clearly identifies that the main focus in terms of supports provided by the Government will be on meeting the most acute needs - the housing support needs of those unable to provide for their accommodation from their own resources. Meeting social housing need in the coming years will, therefore, have to involve a continuation of the transition from traditional construction and acquisition towards more flexible options such as the rental accommodation scheme and the leasing initiative. We must tailor these supports according to the market conditions and the financial parameters in which we are working.

The local authority capital allocation programme has been reduced to €112 million in 2012. This funding provides for the continuation of existing housing construction and acquisitions programmes, a small number of payments under the land aggregation scheme, and funding of the public safety initiative for unfinished housing developments.

It must be recognised that, while there are existing public financial constraints, there also remains a need for local authority housing. To this end, I announced a programme of local authority house purchases and new construction starts last July. Construction will start this year on a number of well-advanced projects, with the balance being advanced next year for completion by 2014. I need to caution that the programme had to take account of the current financial circumstances of the country and was, therefore, a limited one. However, we will work to ensure that the best value possible will be obtained from the funding which will be available in terms of unit cost and the number of units to be delivered.

I am acutely aware that the issue of mortgage arrearsis one of the most pressing economic and social challenges facing the Government and the nation. A mortgage-to-rent scheme was launched on a pilot basis and extended nationally earlier this year, targeting those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. It is just one element of the range of solutions on which the Government has been working.

The capital assistance scheme is the main source of new housing provision for the most vulnerable, disadvantaged households and those with specific needs. The 2012 allocation for the capital assistance scheme should support the provision, by approved housing bodies, of accommodation for households with special categories of need.

The social housing improvement works programme spans a range of crucial Exchequer and local authority funded programmes and initiatives designed to maintain and improve the local authority housing stock of approximately 125,000 units. My Department supports an ambitious programme of regeneration projects which seek to address the causes of disadvantage in some of the country's most disadvantaged communities through a programme of physical, social and economic regeneration. In addition, funding is also provided to estate-wide remedial-type worksand necessary adaptations and extensions to properties to meet the needs of tenants with a disability. The ongoing importance of these programmes cannot be underestimated, not just from a social policy perspective but also in terms of the job creation and economic renewal that are delivered as part of any regeneration programme.

The energy efficiency programme of retrofitting and improvement works across the local authority housing stock is a further example of how social interventions can also help meet economic and employment objectives. This is a highly labour intensive programme and the funding provided will facilitate the upgrading of units as well as supporting and maintaining jobs. The improvement works programme is specifically targeting vacant dwellings and, in particular, stock that has remained vacant for a significant length of time. Returning vacant stock to productive use is essential in order that high quality, energy efficient homes can be provided, especially in light of the current pressures on local authority housing waiting lists. Similarly, the suite of housing adaptation grants very effectively delivers across a number of priority areas, with households benefiting from investment from the Exchequer and from local authorities' own resources.

A commitment was given in the programme for Government to review and update the current homelessstrategy and to introduce a so-called housing-led approach to accommodating homeless people so as to offer them suitable, long-term housing in the first instance and radically reduce the use of hostel accommodation and the associated costs for the Exchequer. Work on the review is almost complete and I intend to launch a homelessness policy statement in the coming weeks. The statement will indicate the steps the Government intends to take and also what housing authorities and other stakeholders need to do to accelerate progress towards realising the ambition of eliminating involuntary long-term homelessness. The statement will advocate a housing-led approach. This is about the rapid provision of secure housing, with support as needed, to ensure sustainable tenancies.

I have set out the broad parameters within which the 2013 Estimate in respect of housing will be framed. I welcome the members' views on the key issues and challenges outlined.