Mr. Graham Doyle:

I am pleased to be here this morning as the Accounting Officer to assist the committee in its examination of the 2020 appropriation account for Vote 34 and the related chapters. I am joined by my colleagues from the Department, whom the Chairman has already introduced. We look forward to discussing the expenditure and activity of the Department in 2020 with the members. As time is limited, I will not go through every area of expenditure but I will touch on the key areas briefly. I provided some advance briefing information before the meeting and a copy of my opening statement. We have also provided advance written briefing material on areas specifically sought by the committee, namely Derrybrien, refuges for those experiencing domestic violence and cost-rental expenditure.

I welcome the work of the Comptroller and Auditor General on the appropriation account for Vote 34 and the related chapters. I recognise and appreciate the value of this work in the context of enhancing the outward demonstration, not only to this committee, but to the public, of the important work done by the Department and the value we put on transparency and accountability. In particular, the period under examination covered the first phase of remote working, and I acknowledge the level of professionalism demonstrated during that new context. As with previous recommendations, we will continue to evolve and mature our systems and reporting to align with best practice wherever possible.

The Department’s gross expenditure in 2020, as set out in the appropriation account before the committee, totalled some €5.3 billion, or a 33% increase on the expenditure in the previous year. As the committee will be aware, 2020 was a unique year concerning activity and finance in the context of the onset of the pandemic and the range of responses put in place across Government. The Estimates process for 2020 did not take place until autumn, and this meant that certain provisions for the July stimulus and the rates waivers formed part of the final Estimate for the Department.

There were subsequent Supplementary Estimates in the areas of housing and water to facilitate further stimulus activity and additional funding for local government to support the final three months of the rates waiver. In recognition of the impact of construction closures on expenditure, some €214 million of unspent capital allocations was carried forward for spending in 2021. Throughout 2020, the Department kept a close eye on activity and expenditure in the context of the pandemic. At the first indication of potential remote working, we established critical payment teams to ensure that there would be no interruption to payments in the various significant areas. When a full lock-down became inevitable, we had a process in place which saw the designation of essential sites for social housing, meaning that there would be a flow of near-complete homes for tenanting. We worked with local authorities and delivery partners in respect of vulnerable households, including those in congregated emergency accommodation, as well as Traveller accommodation, to ensure they could be kept as safe as possible. Working across Government, we harnessed the July stimulus package to channel investment back into businesses. We worked with colleagues in the Department of Enterprise Trade and Employment on the rates waiver to alleviate challenges for businesses.

On housing, the focus of the Department’s 2020 activity was initially driven by the actions set out in the Rebuilding Ireland policy, which was then succeeded by the programme for Government, and, in turn, subsequently became the basis for the Housing for All policy. The Department’s gross voted expenditure on housing programmes, as set out in the appropriation account, was €2.6 billion in 2020. A further €92 million was available from the local property tax, LPT, receipts to fund the housing programmes of certain local authorities. Funding for the overall social housing provision represents the bulk of expenditure under the housing programme. Delivery is achieved through build, acquisition, leasing, HAP and the rental accommodation scheme, RAS. Within these headings are multiple sub-delivery vehicles, to achieve the optimum outcome for Exchequer investment.

Each year, the Department channels capital and current investment strands to maximise new delivery of housing solutions and to ensure that the many tens of thousands of households already in receipt of a social support continue to be provided for. In 2020, over €2.6 billion was spent across 29 subheads under the housing programme. Of this, €1.5 billion was invested in the delivery of long-term homes under build, acquisition and leasing programmes and €600 million was allocated to supporting new and existing social tenancies under RAS and HAP, with the remainder used to deliver on services for homeless households, private housing grants, Traveller accommodation, energy efficiency etc. In 2020, over 24,000 households had their housing needs met through the allocation of the supports provided by HAP and RAS. A total of 7,824 new social homes were delivered in 2020, including 5,000 new-build homes, 1,300 targeted acquisitions by local authorities and approved housing bodies, AHBs, and 1,400 homes delivered through leasing programmes.

Despite the incredibly challenging impact of Covid-19 on construction activity, the second half of 2020 saw a rebound with local authorities, approved housing bodies and other delivery partners anxious to make up lost ground. I acknowledge that determination and co-operation, and the committee will be aware of the pressures on local authorities during the height of the pandemic. Recognising the significant challenges for new housing delivery following the disruption caused by lockdown, the Department secured moneys in the July stimulus, which we used to refurbish vacant social housing stock to make it available for allocation to families and individuals on waiting lists.