Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Amendment No. 21 would mean the agency acting as NewERA would be able to develop proposals for investment in social housing in addition to the sectors of energy, water, communications and forestry already set out. The sectors I have listed are those in which the large commercial semi-State bodies on which NewERA advises operate and in which NewERA will have expertise. I note that the section provides that the Minister for Finance may specify other sectors by order.

With regard to social housing, the Government is exploring all avenues to ensure the supply of housing is maximised. According to the recently published construction strategy, it is a key goal of the Government that every citizen has access to suitable housing. The Government continues to prioritise the delivery of good quality social housing, including the return to mainstream local authority housing construction this year, enhancing the role of the not-for-profit sector in the provision of social homes and continuing to work with NAMA, local authorities and approved housing bodies to maximise delivery of units owned by NAMA or its debtors for social housing. We will identify the best ways to deliver social housing for the years ahead through the development of a comprehensive strategy for social housing. It is estimated that up to 5,000 new social housing units will be provided in 2014 through leasing and existing capital programmes. This includes completion of mortgage-to-rent arrangements, the continued transfer of units owned by NAMA or its debtors, completion of existing building and acquisition programmes and transfers under the rental accommodation scheme.

Budget 2014 contained innovative housing measures and announced an additional €30 million investment in local authority housing which is expected to provide a substantial number of new and refurbished homes. Almost half of the investment would enable the construction of new infill developments in areas with the highest demand. In March, the Minister of State with responsibility for housing, Deputy Jan O’Sullivan, launched a two-year €68 million local authority home building initiative which would build 449 new social homes. This investment represents the first return to new mainstream local authority housing since the beginning of the crisis.

Details of the €15 million fund to bring vacant local authority houses back into use were announced in April. This will bring 952 vacant local authority units back into use providing high-quality homes for people in need of housing while also providing employment through labour-intensive activity. This year will also see the completion of a three-year €100 million investment that will provide 800 units for older people, people with disability or people without a home. We are in the process of rolling out a new housing assistance payment which, in addition to helping remove barriers to employment for recipients, will contribute to the creation of a higher quality private rental sector. The contribution of the not-for-profit sector will be facilitated by introducing legislation to regulate the sector. Regulation will enhance the ability of approved housing bodies to attract private finance.

The construction strategy states that later this year we will publish a social housing strategy setting out our vision and will introduce legislation to regulate the approved housing body sector. I have already noted that the investment sectors in which NewERA will operate are those in which it already has expertise. Social housing is not one of those areas. A role in social housing may be more suitable to other areas of the NTMA family, for example, NAMA has co-operated actively with the Department of the Environment, Community and Local Government and with the Housing Agency in seeking to match the residential stock controlled by its debtors and receivers with the requirements for social housing. It remains open to the Minister to prescribe social housing as an area in which NewERA can develop investment proposals if he forms the view that doing so would help achieve the Government’s target.

I do not propose to accept this amendment but in regard to amendment No. 22, I have indicated in my response to amendment No. 20 that the Minister is considering an amendment on Report Stage on how the Ireland Strategic Investment Fund reports on its investments and we will consider amendment No. 22 in that context.