Oireachtas Joint and Select Committees

Tuesday, 21 January 2014

Committee on Environment, Culture and the Gaeltacht: Select Sub-Committee on the Environment, Community and Local Government

Estimates for Public Services 2014
Vote 25 - Department of the Environment, Community and Local Government (Revised)

3:50 pm

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

I, too, thank the committee for providing this opportunity to discuss the Estimates, in my case for the 2014 housing programme.

I am pleased that 2014 will see a significant level of new investment in housing across a range of measures which will increase the supply of homes to be made available and enhance quality of life for families. In 2014, almost 70% of the budget for the Department will go directly to supporting housing - this will result in an investment of over €0.5 billion across a range of programmes.

A €50 million stimulus package was announced for the housing sector on budget day. Some €30 million of this funding is being made available for investment in local authority housing. This will allow for a new social housing construction programme to be developed over the period to end 2015 and for a retrofitting programme to return vacant houses to productive use as soon as possible. I expect that this investment will deliver up to 500 new homes for households. The detailed arrangements for the implementation of these measures are being compiled by my Department and I expect to be in a position to announce details shortly.

Considerable work has been undertaken in tackling the issues around unfinished estates. The next step now involves resolving the residual cohort of estates which remain in a problematic condition. Therefore, in 2014, €10 million is being provided for a site resolution fund to resolve public infrastructure issues on the most problematic unfinished estates which cannot be resolved by other means. My Department has recently invited local authorities to submit proposals for funding under the site resolution fund which will enable collaborative solutions to be found for unresolved developments.

In continuing to support the objective of the Government's housing policy statement of meeting the needs of people who are unable to provide for accommodation from their own resources, I expect that approximately 5,000 new social housing units will be provided in 2014. These units will be delivered through a range of mechanisms, including through continued investment in leasing and RAS, the completion of existing capital programmes and mortgage-to-rent arrangements, and the continued transfer of NAMA units.

Reflecting the ongoing importance of leasing as a primary delivery mechanism for social housing, increased funding of €40 million is being made available and some 1,200 new leasing units will be delivered in 2014. This provision also provides for increased output under the mortgage-to-rent scheme which is a crucial element in tackling the mortgage arrears crisis and 350 new transactions will be delivered in 2014.

To support the most vulnerable in society, funding is being provided for the development of 175 new housing units for those with special housing needs. Furthermore, up to 150 persons with disabilities will be provided with new homes in the community under the Government's de-institutionalisation programme.

To support Government strategies on the needs of older persons and persons with disabilities, some 7,800 adaptation grants will be available to assist people to remain at home for longer and prevent premature entry to residential care. As the committee will be aware, adjustments to the administrative structures for the grant schemes for new applicants became effective from the start of this month following a review of the schemes. The aim of the review was to give priority to finding ways to spread the benefits as widely as possible, to target those most in need, and to ensure that the grants supported the maximum numbers of households. With the level of funding now available and the revised administrative arrangements, the most vulnerable will be better placed to benefit from the grant schemes.

This year will also see a continuing focus on a programme of regeneration and remedial works projects, with a provision of €79 million being made available. These projects target the country's most disadvantaged communities through a programme of physical, social and economic regeneration. Priorities for 2014 include a new focus on construction and refurbishment in Limerick regeneration, the final phase of construction and refurbishment in Tralee and Ballymun, and refurbishment, demolition and construction works in Dolphin House and St. Teresa's Gardens.

In order to ensure continued progress towards the achievement of the 2016 target of ending long-term homelessness, the homeless budget is being maintained at €45 million in 2014. As the committee will be aware, the first report of the homelessness oversight group was published last December. That group was established to examine the approaches being pursued in the homelessness policy statement and to review progress, identify obstacles and propose solutions. I am currently considering the group's report and its recommendations and will consult with colleagues in Government on the implementation of these recommendations, as appropriate.

Additional innovative measures in 2014 will see €25 million being made available for the energy efficiency stimulus measure which will improve the energy efficiency of some 12,500 local authority houses, resulting in warmer homes and lower energy bills for thousands of families. This initiative will also create approximately 1,000 jobs in the construction sector over the period 2013–2015.

The social housing reform programme will also continue during 2014 with the commencing of the testing phase of the new housing assistance payment.

This will begin in Limerick, the lead local authority for the project, and quickly extend to the six other local authority areas forming the first wave and thereafter to all areas. I also hope to see the necessary supporting legislation, which is now being drafted, enacted before the summer. I hope to bring the heads of that Bill to the committee as soon as possible.

The most recent data on the number of households qualifying for housing support underpin the need for flexible and diverse approaches to be taken to increase the level of social housing supply. There is no single solution to this and my priority is to use all avenues available to me to respond to this housing need. In 2014, I am determined that the social housing programme will continue to optimise the delivery of good-quality social housing and the return for the resources invested. I would welcome the views of the members of the committee on the issues and challenges outlined.

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