Barry Cowen (Offaly, Fianna Fail) | Oireachtas source

I thank the Minister and his staff for attending. I thank them in anticipation of the new space we are in with the ongoing consultative process of recent weeks. I hope and expect that when the Minister's strategy and policy is produced towards the end of July, it will be cognisant of the recommendations of this committee.

As we all know, for the past number of years there has undoubtedly been a housing crisis. In the past 12 to 18 months, this has been an extraordinary emergency. I would contend that conventional methods and processes that may have worked in the past have, unfortunately, not worked in recent years, are not working now and will not work in the near future. These methods and processes, while initially put in place with the best of intentions and in the best interests of all concerned, are not cognisant of the situation we face. I am conscious that when I refer to the conventional planning process, this is guided by county development plans that are sporadic in nature. Some authorities are in the midst such plans, while others are in review. The plans are completely disjointed across the State on a county-by-county basis.

We have had regional development plans and spatial strategies, none of which was designed to meet the emergency that now exists and none of which should form the bedrock or the foundation for resolving this issue that we face. This is the case both in the public sector, in the provision of public and social housing, and in the case of private development.

Many would contend that, during the course of our deliberations, the Part VIII process has also been shown to be flawed. I would contend that it appears An Bord Pleanála is at present not adequately resourced with funds or manpower to deal with the sort of level of applications that is, should be and will be necessary to address this issue. In my constituency, Bord na Móna, in a most important project, had sought permission in respect of co-fuelling. This had been contested previously by An Taisce and was judicially reviewed. I am conscious of the importance of that application to the region in which I reside and the 600 jobs that emanate from it. Yesterday, for a second time, an extension of time was sought in respect of the making of a decision on that issue. I am conscious of the effect that has on a region or the forward planning of the company involved. However, this is only one instance of the obvious flaws and delays that are evident and need to be addressed quickly.

The delivery of residential units, from conception to design, planning, procurement and construction, is way too long and costly. It is way too long in the public and private sectors. The Minister stated that the process within the Department and local authorities from conception to handover of keys has been reduced from eight stages to four. I believe that was done over a year ago, but it is today still every bit as slow and cumbersome as it was some years ago. In the area of costs, the cost of funds, VAT, development charges, site costs and the costs associated with certification, compliance and regulations are all combining to make it difficult. We have yet to get an absolute handle on the cost of construction when one considers everything involved.

Conventional methods of funding are also outdated and, in the real world, banks are not lending to developers at the rate at which they need to. In the real world, the fiscal rules such as they are at present bar this State and the Government from providing the extraordinary amount of funding necessary to provide the extraordinary number of units required. We have to think outside the box and find new means and methods. We heard from representatives of NAMA recently. One of its success stories has been the National Asset Residential Properties Service, NARPS, initiative. This is a special purpose vehicle that can purchase and lease units for periods of time. This Government must seriously consider, in this emergency, putting in place a special purpose vehicle or housing authority that can learn from NARPS. That authority can seek funding from the likes of the NTMA, as we heard during the week. It can also, as it should do, receive funding from the credit unions, which are anxious to get into this game. They are anxious to play their part and role and to achieve a better return than that being achieved at present for having it in the pillar banks, which are not lending it on to others when it is required.

The authority then can lend, fund, build and enter joint ventures to provide units for local authorities, approved housing bodies and colleges. Colleges are also sucking up a lot of the residential properties in the centres in which they are located. During the course of recent weeks, Maynooth in particular stood out. Almost the whole of Kildare is taken up with students seeking accommodation to get to and from NUI Maynooth. Whether they receive funding from this authority or become an approved housing body, they have a role to play. On-campus sites are available to them and must be forthcoming.

That authority can also bring forward emergency alterations to legislation. We had emergency sittings to deal with banking crises. We can have emergency sittings to deal with this crisis.

That authority must look at the methods of planning and funding models relating to local authorities. Its terms of reference could relate to some Part VIII-type planning for a window, whether a two-year or three-year period, to allow this matter to be dealt with and to allow such an authority to do what we want it to do, namely, get on with the job of driving the development, construction and provision of residential units to deal with this crisis. It could also seek to provide incentives for local authorities or the private sector in respect of the compulsory purchase order powers. This offers an opportunity to revitalise towns and villages. The person from the NTMA referred to the funding that has already been provided under the capital development programme and funds to local authorities in respect of larger towns. As many members have said in recent weeks, this crisis or emergency extends beyond the large urban centres, as crucial and pivotal as they no doubt are and despite the focus here. However, in the town I come from and the villages with which I am familiar there is an equivalent crisis. Up to 50% of the representations in our clinics throughout the country in recent years have been taken up with people seeking housing.

This should be seen as an opportunity to revitalise, re-energise and give life back to those towns and villages. There are many buildings which are tied up, whether for reasons of conveyancing, title, family disputes or lack of funding. There must be improvements to the CPO powers to initiate development to address this. It should also be seen as an opportunity not only to rebuild and re-energise our communities but to build new communities and learn from the mistakes of the past and during the boom years, when we had sprawl in towns and villages in the greater Dublin area and beyond. We are chasing our tails when it comes to the provision of services in education, recreation, transport and infrastructure. The Minister referred to the infrastructure deficit in certain areas. This is an opportunity to create new sustainable communities in the greater Dublin area and other places. Pilot schemes could be initiated to reward options that address infrastructural deficit and bring new means and methods of transport and accessibility in the context of known population trends and parameters. We could then provide the services that are needed in that context.

We have talked about energy and sustainability and the responsibilities of those in the construction sector in light of our obligations in respect of climate change and so forth. Real opportunities can come out of a crisis and they should be explored. All of this should be driven by an authority that has the potential to raise extraordinary amounts of funding. The conventional methods - as good as they were - employed in the 1930s and 1970s will not work in this crisis. I hope and expect that we will continue to explore the possibilities that exist in the context of what I have said in the hope that the Minister would bring such proposals forward. I have in mind a special purpose vehicle to drive the provision of residential units to address the crisis and the emergency. We should bear in mind everything we have seen in recent years, despite the best of intentions of those who sought to deliver them. For example, the 2020 strategy relates to the provision of housing and the figure of 25,000 units by 2020 was mentioned. However, we are aware of the number of houses constructed by local authorities in recent years despite the commitments made. With all due respect, the Minister is going to have to think outside the box and come up with new initiatives and concepts and a new process. As good as they were, the methods used in the past are not suitable for the present. I hope the Minister will address the matters to which I refer by the end of July.