Dr. Donal McManus:

The Deputy mentioned the fiscal rules. We had done some work at European level. What is called social and affordable housing comes under the service of general economic interest rules. Those are the rules that determine what member states can spend on social housing. How is social housing defined? In Ireland it is quite narrowly defined for people incomes below a particular level and certain vulnerable groups. In other countries social housing is defined much more widely. For example, in the Netherlands and Sweden it includes much higher income groups.

A number of years ago a few private companies in those countries took cases against the governments' social housing sector suggesting they were being blocked out from providing social housing. There are many affordability problems throughout Europe not just on the social side but on the affordable rental side with people who do not qualify for social housing side but do not want to get a mortgage. There has been discussion between all our federations in Europe on this issue. The SGEI rules are very narrowly defined. They are becoming more narrowly defined into targeting groups under certain income and vulnerable groups. With the whole push on cost rental and affordable rental, there is a chance to widen those rules for not just social but for cost rental and affordable rental.

We have done some work on that with some of our colleagues in Europe. We are a small country and other countries believe we are unusual in providing a very targeted social housing sector; other countries provide a much wider sector. With the problems with affordable rental for middle-income groups, there is momentum at European level. We made submissions at European level that the SGEI rules on social housing should be re-examined. They will be reviewed. There is a consultation up to mid-July on the service of general economic interest rules.

They determine the rules by which member states can allocate or notify the Government on social housing. That is the area that can be examined. We are interested because we are now charged with cost rental and affordable rental. On service of general interest, SGI, rules, Ireland and other parts of Europe are moving into that space where we are talking about not only lower-income groups but other groups whom the market has failed. The market has failed more people just outside social housing, which is why we are talking about cost and affordable rental. There is momentum for that. We have been pushing at European level for the SGI rules to be widened on that. It is on our radar, where it would not have been so much in the past. It would also be in local authorities' interest if the SGI rules were more flexible. However, it has to be determined at more of a European and Commission level to allow Government to determine what they can do at national level.