Mr. John McCarthy:

We do not have enough data at this stage to give a reliable estimate, but it is fair to say that, by virtue of the way in which the scheme has been tailored, the cost would be considerably higher than the potential €40,000 maximum for the repair and leasing scheme.

Senator Victor Boyhan referred to local authority housing stock. In the past three years we have invested a significant amount of funds in dealing with voids across the country. This will probably be the last year of a significant voids programme, given that we have broken the back of the issue. I spoke to a local authority director of housing recently who indicated that the authority had between 40 and 50 vacant units out of a stock of more than 6,000. In many cases, the vacancy rate is below 1%. As part of the normal reletting process, when old tenancies end and new ones start, this would not be out of line with international experience. In the past three years we have invested approximately €84 million in a voids programme. This relates to Deputy Pat Casey's point on early wins, in that capital constrained local authorities were not in a position to bring units back into use early. The figure €84 million has delivered approximately 7,000 units. It was a critical early target and area of activity for us.

Deputy Pat Casey raised two issues about building regulations. If it helps him, we will be happy to brief him on the Building Control (Amendment) Regulations, BCAR, and the new building control management system, BCMS, under which there is a well developed online system for the registering and lodging of documents the whole way through the process. Instead of delaying the meeting, we could have a separate chat about that issue.

The Deputy's second point is one on which we are working, namely, older buildings and the extent to which we can match their deeper retrofit requirements with the modern regulatory system of fire and building controls. For the next few months we will be working with Dublin City Council as part of the living city initiative in an attempt to use some Georgian properties as a test bed to determine the challenges that arise and whether we can marry the regulatory requirements with the specific requirements of older buildings. This work will cover the regulatory system, not just building controls but also planning, and allow us to determine the factors involved. If a product emerges from this process that suggests changes to the regulatory system are required, the Minister has stated he is opening to considering them.

On the question of who owns vacant properties, the repair and leasing pilot scheme has shown us that making information on the availability of the schemes public can be useful. It attracts people to the scheme, as well as the buy and renew scheme. Obviously, one could tap into the property register or other mechanisms to identify ownership, but, as we accelerate the roll-out of the repair and leasing scheme, we are looking for local authorities to invite expressions of interest. Some have already done this ahead of the national roll-out. For example, a number of Dublin local authorities have been putting out feelers out. The ownership question will not present a problem in reaching the figure of 800 units this year, but we will consider the matter in the light of the feedback under the vacant housing reuse strategy.

Deputy Kate O'Connell mentioned the overall housing supply problem. We try to look as far back into the pipeline as we can by examining a number of indicators. Furthest back in the pipeline is the number of planning permissions. We publish a number of statistics in a monthly report. We will publish the statistics for February in the coming days, but the statistics for January show that the number of units for which planning permission was granted in the 12 months to the end of September last year was an increase of approximately 45% on the figure for the previous 12 months. That is a strong signal. Through the BCMS, we monitor commencement notices which need to be filed on the electronic system as developments commence. Up to the end of December, the number of units covered by commencement notices had increased by 51% year on year. That is a significant increase in activity commencing. We use ESB connections as a proxy for completions. The figure for the calendar year 2016 was just below 15,000, a significant increase on the figure for the previous year of 12,666.

In overall terms, our objective under Rebuilding Ireland is to reach the point where we will have a housing supply of approximately 25,000 units per annum. We started in 2015, when the number of completions was 12,666. As such, Rebuilding Ireland will require us to double housing output. The completions figure for 2016 was a significant first step along that road. Given the extent to which there are commencements and planning permission is applied for and granted, there is a pipeline. How the housing market will evolve in the coming period is subject to many factors, but there are positive signs in the level of activity as measured by these indices.

What I have to say is more of an observation rather than a question. Unless something changes dramatically in the plan that is to be announced in April, what we are looking at is 6,000 units being delivered over six years under the three programmes. That is 3% of the total vacant stock that exists, according to the census, 198,000 properties. It is a really small target. We hear of bigger targets such as 25,000 overall builds and 47,000 social builds of various kinds but this is the low-hanging fruit. Notwithstanding the difficulties in identifying properties and dealing with issues concerning owners, probate and other issues, even if it is 10% or 15% of the 198,000 properties there is a significant number of units to be got, but it is also significantly cheaper. The upfront payment for repair and lease properties, on average, is €40,000 and that is recouped from rent. It costs up to €100,000 for the buy and renew scheme. While we do not have the figures for purchases, one would presume, in particular if one was block buying, that one would get some discount. Hopefully, one would be purchasing properties at below €200,000 if they are in that kind of ballpark. Therefore, I question the target of 6,600, or 3%. A 10% or 15% target out of 198,000 is modest. Is that it? Will there be any attempt in the strategy to go beyond the target?

We support rapid builds. We understand the logic of them. We have done a lot of work on the ground in the constituencies to make sure people understand what they are for but, again, according to the press release from the Minister, they are €245,000 a unit. On the basis of the ones in Clondalkin the total amount of money and the total number of units, the unit price breaks down at €245,000. Is the Department going to revise the plan? Do the witnesses know if the Minister intends to revise the plan because they are good schemes? I am a strong supporter of the three schemes but if they are underfunded to the current extent we will not get the return we could get, and a much more quick and cost-effective return than through other aspects of the plan.