Oireachtas Joint and Select Committees

Tuesday, 24 November 2015

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Review of Estimates for Public Services 2015
Vote 34 - Department of the Environment, Community and Local Government

2:15 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I will be as brief as I can because I understand the time constraints. I have no doubt many questions will emanate from the figures in the presentation that has been made. We can do that in writing to the Minister and expect him to respond accordingly.

It is the first anniversary of the Minister's announcement of €4 billion for social housing. Within that plan, was it envisaged that only 200 units would be built in the year since then? Will the €30,000 cap on repairing voiding units be lifted? Will local authorities have local discretion to carry out the required work to turn around those houses more quickly than heretofore? At present, irrespective of whether the fault lies at the door of the local authority or the Department, it is taking in some cases €4,000 to €5,000 worth of work to be done to a house. People are left waiting while only 64% of the budget has been spent at this stage of the year which is not appropriate.

I welcome last week's announcement of the proposed tenant purchase scheme. I have been calling for a new version of the scheme since it was abandoned in 2013. It has many worthwhile aspects, on which I commend the Minister. Will the funds raised locally be retained locally as an incentive for local authorities to reinvest in their housing stock or to enter into agreements to provide more housing units for those on the housing waiting lists?

On the provision of new units, the Minister of State, Deputy Coffey, was in Banagher, County Offaly, a few weeks ago - we were glad to see eight houses built after four years. Notwithstanding that, the cost associated with it was €2.2 million for eight units. I am more than delighted that people have been accommodated in a county where the list extends to 2,000. Having said that, it works out at €275,000 per unit. How does that wash with the public when we consider that Project Arrow is being sold to private investors for supposedly €1 billion, 50% of them residential? This would indicate €500 million worth of residential units throughout the country can be purchased for approximately €100,000 per unit. Those units are finished and ready for people to be housed in.

Is the Minister not disappointed that the Government has not given serious consideration to a better return on our investment in respect of the social dividend that one expected from NAMA?

Local authorities throughout the country are finalising and preparing budgets for the forthcoming year but they were informed in recent weeks of a global evaluation in respect of utilities, which results in a reduction in income in the forthcoming year for many. In my county yesterday the Department gave a rebate to meet that extra cost. The loss is €440,000 and the Department reimbursed €227,000 and said it was a one-off payment which would not be repeated next year and the council should make provision as re-evaluation continues, although I think only 25% of the total re-evaluation has taken place. The reimbursement to local authorities was somewhat selective. In Offaly, for example, it amounted to little less than 50% while in Kilkenny I believe it was 100%. Why is there discretion between counties? My county of Offaly is very dependent on the utilities such as Bord na Móna and the ESB. If the decision taken recently by the courts in Edenderry were to be replicated we would be at a loss of €1.7 million in rates income. How could we compensate for that? The Minister says that only 64% of the budget has been spent. There are areas that have yet to be allocated towards the end of the year. Will there be further allocations to those counties that have been short-changed?

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