Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I welcome the opportunity to discuss with the select committee this afternoon my Department's proposed Supplementary Estimate for 2017. Today, I am accompanied by departmental officials Ms Mary Hurley, Mr. Maurice Coughlan, Ms Nina Murray, Ms Theresa Donohue and Ms Janet Jacobs. The committee will recall that during November, we discussed a Revised Estimate for my Department that did two things. First, it took account of the transfer of community functions from my Department to the newly established Department of Rural and Community Development; and second, it reflected the Government decision on the future funding model for Irish Water and made provision for the refund of water charge payments made by domestic customers. With these changes, the revised budget for my Department in 2017 was set at €1.995 billion. I am today bringing forward for consideration by the committee a proposal for a Supplementary Estimate that will provide an additional €92 million to fund the local authority housing capital programme and €8 million for the National Regeneration Programme. This additional €100 million will see the housing budget for my Department increase to €1.4 billion for 2017.

As members will be aware, when attending the committee on 15 November last, I set out the position regarding spending on the Vote in 2017 and indicated how the spend was being kept under close review in my Department as we move towards year-end. I also indicated that my Department was continuing to engage with the Department of Public Expenditure and Reform, as required, in finalising the position on the Vote for 2017. It is clear that very significant momentum is now building up on the local authority housing capital programme. Local authorities are responding to the housing challenges in their areas by accelerating delivery and progress in terms of advancing social housing projects on site is strong. In line with the targets set out in Rebuilding Ireland, local authorities are now engaged in large-scale construction activity throughout the country, with well over 700 developments advancing through various stages across the country at the end of the second quarter this year. This increased momentum will follow through into 2018, when there will be a further quantum leap in housing funding and delivery, with the Government making over €1.9 billion available for housing programmes next year.

Today we must deal with the impact of this momentum in 2017. Additional capital funding is now required to meet commitments arising from increased activity, including the costs associated with the accelerated delivery of social housing units; the provision of family hubs and other emergency accommodation for homeless families and those who are sleeping rough; and acquisition opportunities, which are being taken up as they arise and where they represent good value for money and do not adversely impact on local housing markets. Originally, €264 million in Exchequer funding was provided for local authority construction and acquisition activity in my Department’s Vote for 2017. Taking into account also €35 million that has been re-allocated from the Local Infrastructure Housing Activation Fund, LIHAF, €50 million in surplus local property tax receipts and the €92 million now sought in additional Exchequer funding, the total available for the main local authority construction and acquisition programme in 2017 will amount to approximately €440 million.

The target for 2017 is to deliver over 21,000 new social housing supports and I am confident we will significantly exceed this target under the various housing delivery programmes. As we move towards end of year, my Department is working closely with local authorities and approved housing bodies in all aspects of housing delivery and housing outputs for 2017. Once these have been finalised, I will revert to the committee on activity and final 2017 outputs early in the new year.

Supplementary funding of €8 million is also required to ensure continued activity under the National Regeneration Programme this year. This will support the increased construction activity currently under way in Dublin and Limerick, along with ensuring that the programme of social and economic initiatives central to the regeneration programme also continues to be supported. Approximately 150 new social houses at least will be delivered this year under the regeneration programme. With the additional funding now proposed, the total Vote for my Department will amount to €2.095 billion in 2017. I am, of course, happy to discuss the details of the Supplementary Estimate with the committee.