Oireachtas Joint and Select Committees

Thursday, 2 June 2016

Committee on Housing and Homelessness

Department of the Environment, Community and Local Government and the County and City Management Association

10:30 am

Mr. Eugene Cummins:

I thank the Chairman and members of the Committee on Housing and Homelessness for inviting us to appear. We are pleased to be before the committee again this afternoon to further assist it in its examination of the issues and challenges facing us all with regard to housing and homelessness. As the Chairman noted, my name is Eugene Cummins and I am the chairman of the CCMA housing committee. I am accompanied by my colleagues, Mr. Owen Keegan and Mr. Dick Brady, chief executive and assistant chief executive, respectively, of Dublin City Council, Mr. Billy Coman, director of services of South Dublin County Council, Ms Catherine Keenan, director of services of Dún Laoghaire-Rathdown County Council and Ms Margaret Geraghty, director of services of Fingal County Council.

As previously stated on 26 April, local authorities are fully committed to social housing provision, social housing accommodation and addressing homelessness. The points we made at that time still stand. The local authorities will continue to work with a range of stakeholders, including the Housing Agency, approved housing bodies, the private sector, Departments and all communities to deliver sustainable housing. In addition to the points made on 26 April, I will take this opportunity to highlight some key issues that must be addressed. First, on private sector engagement, the immediate concern for local authorities is the absence of the private sector in significant numbers from housing construction. As we all are aware, the key issue with regard to housing in Ireland is supply of housing stock and, quite simply, supply does not equal demand. This is leading to difficulties for families and individuals who wish to either buy or rent their homes. If more people could access housing that is affordable, which is the preference of the majority of people, then the pressure on social housing would ease. As previously stated, unless the private sector returns to building properties in significant numbers, the problem, including homelessness, will get worse.

In respect of sustainable communities, it is acknowledged that local authorities and the State own a sizeable landbank but social housing can only be built, for the most part, on a small percentage of these sites. We have learned from past mistakes that building large social housing estates is not the way forward. Building sustainable communities is the way forward with mixed tenures and properly planned communities in which all supports, services and facilities are available, such as schools, parks, amenities, community facilities and transport services, as well as commercial facilities such as retail, leisure facilities and cultural services. This is wholly consistent with the statement on housing policy, Delivering Homes, Sustaining Communities. Local authorities work with our partners in Departments and State agencies to deliver these objectives. Importantly, and as already highlighted, we work in partnership with the private sector to deliver a suitable mix of housing tenure and a range of services in mixed use schemes. Our focus on sustainable development will not delay the delivery of our targets but reiterates the need for a partnership with the private sector to achieve sustainable developments for future generations.

As for delivering targets, local authorities met their targets as per Government policy set out for 2015 in the Social Housing 2020 strategy and we certainly are up to meeting the challenge in coming years but this will require the active participation and engagement of the private sector. I also wish to highlight that the rates of vacant units are now as low as 1% to 2% in many cases. In addition to the voids, the housing strategy being advanced includes a mix of construction and housing support though the housing assistance payment scheme, HAP. While working within current planning and budgetary frameworks, we are committed to doing everything we can to achieve the targets set out for us by the Government.

In respect of the statutory framework, local authorities, like our partners in the various Departments, are obliged to adhere strictly to procurement rules and the legislative provisions of planning law. In general, there is no magic formula for significant time savings. However, we will continue to work with Departments to explore any area or process that may have the potential to save time in contract delivery. As for risk appetite and as previously stated, we must and will deliver our social housing objectives in partnership with a range of Departments, State agencies and the private sector.

No projects, including housing initiatives, are without their risks. Anyone involved in a capital project, from a small extension to a home to a major urban renewal scheme, knows that despite all efforts to manage or mitigate risks, cost certainty can only be achieved at final account stage. Consequently, financial risk - overruns - must be shared by all stakeholders.

We have worked and will continue to work with the various Departments, approved housing bodies and the Housing Agency to deliver homes for those on our housing lists in sustainable communities and within the legislative framework of planning and procurement policies. Delivery of a mixture of private and public mixed tenure will undoubtedly need an increase in private sector construction. Housing is a priority for local government. We are committed to achieving our housing targets. The local government sector will continue to be available to this committee to assist with its deliberations.

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