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)

5:10 pm

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

I wish to respond to the housing issues raised by Deputy Catherine Murphy. I absolutely share her concern about the number of people waiting on housing waiting lists. This is the reason that for the first time, the Government has introduced a mainstream construction programme through local authorities. The Government was unable to do it heretofore. It was not because it did not wish to do it but in recent years, it simply did not have the money because of the cut-back in the general amount of money available to the Government under the troika, following on from the debacle of what happened to the economy. However, the Government now has a housing construction programme, of which €65 million will go directly through the local authorities and €35 million through the voluntary sector. The programmes will be announced as soon as possible this year.

I listened to Deputy Murphy specifically on the fact that a small number of local authorities have the largest number of people waiting. I have specifically instructed in respect of this funding that there be a focus on those local authorities that have demonstrated the greatest need and the longest waiting lists. I do not wish to spend the money where there are no problems but wish to spend it where the predominant problem exists in respect of housing supply. This will be part of the policy pertaining to the expenditure of this money. I am highly conscious that a number of local authorities have particularly long waiting lists. As for the European money, Ireland has applied under the social investment programme of the European Union. The European Investment Fund is under the European Investment Bank and we have applied for funding under the scheme. If the Government gets this money, it expects it will provide approximately 1,500 units. While a response has not yet been received, it was brought to the Government's attention that there were very few applications under that fund from Ireland over a number of years since the fund was set up. In fact, the Secretary General of the Department of Finance is a member of the governing board of the European Investment Bank. The Government has been made aware that there were fewer applications from Ireland than should have been the case and an application now has been made that is specifically related to the housing sector. I hope we will be successful in getting funding.

The issue of homelessness is a top priority for me and I have stated that clearly. I set up an oversight group, which has reported, and I will bring a memorandum to the Cabinet shortly regarding its recommendations for addressing long-term homelessness in particular, as well as having a housing-led approach to it. In respect of the involvement of the not-for-profit sector, there certainly is scope for it to become involved in this area and I am working with that sector in this regard. The Government has now introduced voluntary regulation of the sector, which believes that if it is regulated, it will be better able to attract funding. This now is under way and eventually will lead to statutory regulation but for the present, voluntary regulation applies and the sector is very supportive of this.

Overall, the Government is addressing the housing supply issue in a number of areas, the main one being the return to mainstream construction, which obviously also is important for job creation, as well as applying for European funding. There is another programme called the social impact investment programme, which is starting this year and which is geared specifically at families. Again, it involves working with the voluntary sector and is geared towards addressing families in the Dublin area who have presented as being homeless. The Department also wishes to expand this programme. The Government is involved in a number of other areas and obviously, it continues to lease and to seek units from NAMA. In addition, approximately 50% of those who are on housing waiting lists are in receipt of rent supplement through the Department of Social Protection and thereby are in receipt of some housing support. There will be a gradual movement onto the housing assistance payment, HAP, scheme, which I acknowledge the sub-committee does not have time to go into today. I accept it is a question of addressing the growing waiting lists and that there are real problems with such waiting lists. However, the Government is addressing this in a variety of ways and the construction of housing is the new element this year. There had been construction for people with special needs, for older people and those who are homeless but the construction programme will now revert to being a mainstream local authority programme.

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