Mr. John Hannigan:

I thank the Chairman and members of the committee for the invitation to be here today. Circle Voluntary Housing Association is one of Ireland's largest approved housing bodies. We manage homes across 21 different local authorities, owning and managing nearly 2,900 homes. Our pipeline for delivery for the next three years is 1,900 homes and our pipeline in discussion, which we have not yet confirmed, is nearly 1,700 homes. We predominantly deliver family housing, with approximately 10% for older persons and people with disabilities. The 60 dedicated and committed staff we employ gained a 90% satisfaction rating among our tenants for the services we provide in the last number of years. Our focus is on our tenants, both current and future. We do not always get things right but we always work to make things better. Through our values, our tenants are empowered to have a significant say in how our services are delivered and improved. Our willingness, empowerment, honesty, excellence, accountability and respect, WE HEAR, values, are lived by all in Circle. Circle is grateful for the opportunity to be here today to discuss the implementation of the Housing for All plan. The key areas we wish to address include the certainty and security of tenancies over a lifetime. This is something AHBs are in a position to offer, with potential for succession for family members. There are too many AHBs, but too few delivering new homes for those in need. Of the 400 registered AHBs, 250 are active but only 17 are delivering new homes. Of this, six are delivering more than 90% of all AHB homes and over 50% of all social housing at this time. There is a need to reduce the number of AHBs to a more reasonable number to ensure good governance and regulation. This could be done through regulation, but promotion of delivery through AHBs needs to be extended. In terms of delivery, Ireland is the only European country that insists that all social and affordable homes be provided by 100% debt; this is not sustainable. There needs to be a move away from debt into equity provided by the State, which would allow the State to derive other benefits. Circle suggests the State continue the work it started on the revision of the process of funding homes under the capital assistance scheme, CAS, the capital advance leasing facility, CALF, and the cost rental equity loan, CREL. With recent increases in cost and the difficulties of 100% debt finance, the latter two schemes are no longer delivering the previous level of output. The commenced reviews should include a reduction in the debt element, equalisation of interest rate elements and recognition that the private finance elements need sufficient resources to ensure success; otherwise housing delivery is likely to be limited in the coming years.

Circle suggests that the State drive co-ordination of housing delivery in a different way, perhaps similar to Sláintecare. AHBs have been accused of driving up prices due to the nature of the competition we are required to participate in; this competition is limited. Local authorities, as a rule, act as strategic enablers, determining where Part V provision will be agreed. As an AHB, we do not compete for this Part V provision. The AHB sector is well regulated, with clear statutory regulation from not one but three regulators. However, regulation is not undertaken of all social and affordable housing providers. Our sector welcomes regulation and suggests that it be introduced across all providers of housing - social, affordable and private - to ensure that the State is getting the best deal for the money it invests. There are a number of significant barriers to the delivery of homes for those in housing need. We hope these barriers will be discussed today.

These issues include current funding provision that does not allow for the development of community spaces. The cost of providing homes is another issue. Factors such as VAT on social and affordable homes, planning levies, development levies and utility costs could be reduced. Doing so would reduce the cost of homes by more than 15% with immediate effect. A cap on the level of profits earned by builders and developers who are delivering the homes would also ensure a reduction in costs. These measures would provide a degree of certainty in pricing for developers, builders, local authorities, the Land Development Agency, LDA, and AHBs. They would also help to moderate the prices generally in the market as greater transparencies could be derived.

The planning system in itself is a barrier to delivery. It requires reform and simplification to facilitate our growing and future population needs. The cost of finance is now a major barrier to the delivery of low-cost, affordable homes, especially under the CREL process. The requirement for 100% debt finance for each and every social and affordable home provided by AHBs means cost is a limiting factor, regardless of where the debt comes from.

There has been some recent criticism of the professionalisation and corporate nature of the AHB sector. The whole of Circle Voluntary Housing Association, as members of the Chartered Institute of Housing, are proud to call themselves housing professionals. We care about our values and our mission, which is to deliver homes for those in housing need. Professionalism is expected and required. We manage a company that turns over more than €10 million in revenue and has a balance sheet of more than €155 million in assets. We manage those assets on behalf of the State and our tenants and we have a responsibility to maintain them in the right way for the future.

The delivery of housing is about more than bricks and mortar. It is about the balance of State assets and the provision of homes for people. We have a ready-made delivery system in the AHBs, which are made up of people who understand what is needed and who have delivered for decades, are delivering today and have the capacity to deliver into the future. We urge that greater use be made of AHBs. I thank the committee for the opportunity to present to it today. We look forward to answering any questions members may have.