Oireachtas Joint and Select Committees
Thursday, 26 September 2019
Joint Oireachtas Committee on Housing, Planning and Local Government
Reclassification and Future Outputs of Approved Housing Bodies: Discussion (Resumed)
Mr. Paul Lemass:
I will take what I can and there may be questions Ms Scott and her team can take. I will take together the Deputy's first and last questions, for which I thank him.
We are conscious that the AHB market in the United Kingdom is very different. That explains in part why their reclassification process was somewhat smoother. There are some fundamental differences in the role local authorities play in AHBs in England than in Ireland. I believe Scotland and Northern Ireland have separate arrangements. We are committed to exploring them further as part of a resolution of the reclassification issue. We are happy to learn any lesson from what has happened in the United Kingdom and beyond. It has happened elsewhere in Europe also.
The broader context is provided by social housing policy. The major challenge EUROSTAT's decision presents for us relates to broader housing policy in areas such as the setting of differential rents, the allocation of housing, the configuration of housing and the types of housing we require. These are matters which are the cornerstones of social housing policy. While I appreciate the desire of the AHB sector to be reclassified as being off-balance sheet, we have to be mindful that in so doing we do not tear down the entire edifice of social housing policy, as it stands. That is why these are hard decisions to make and why it has taken a long time to get to a position on them. The Minister is on record as talking about an approach to social housing policy reform and looking at areas such as a national approach to differential rents, income assessment and so on. That is at an advanced stage of development. We are working on it and it must take precedence. Ultimately, it will inform any consideration given to classification.
We recognise that the CSO and EUROSTAT have made a decision.
If we can bring new information to the table on foot of policy changes, we will do that but obviously a policy change that affects the entire allocations process for all social housing applicants would be one to which we would have to give a lot of consideration. Also, to come to Deputy Ó Broin's point about whether things go well, as it stands, the projection is that we would build, through build, acquisition and lease, 12,000 units per year between 2021 and 2027. That is factored into the national development plan so, as matters stand, the figures provide for those 12,000 units. That is the highest level of funding we have ever had for social housing. It is important to remember that this is in the current national development plan figures. If things turn badly, the first step will be prioritisation. The Government has stated that housing is an absolute priority. There are other calls on funding. At the moment, the children's hospital is going through, but that will complete at some point, and then the draws on funding in that area will no longer exist. Part of this, then, is a matter of Government priority at the time. Clearly, however, the national development plan provides for 2,000 units per year between 2021 and 2027 and that is the basis on which we are operating.
I have already touched on the UK. As regards expenditure, funding to AHBs between 2009 and 2018 amounted to €1.745 billion. In 2018, expenditure was €337.69 million. That includes capital and current expenditure. For 2019, the capital allocation is circa €260 million and the current allocation is circa €210 million. That is funding from the Department.
I think I have dealt with the matter of the fiscal space, the €100 million issue in the context of what is hardwired into the baseline and the funding already available.
As regards the number of meetings, we have met the Housing Alliance and the ICSH a number of times and there has been substantial engagement with the Department of Finance as well.
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