Oireachtas Joint and Select Committees

Wednesday, 16 July 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion (Resumed)

4:30 pm

Mr. Mike Allen:

I represent Focus Ireland. I thank the committee for the opportunity to put forward our views on the forthcoming budget. The Government's national policy on homeless, and that of the previous Government, is probably the best policy that has ever been developed and is outstanding at European level. Unfortunately, the reality on the ground is completely different. We have the best policy and some of the worst outcomes we have ever faced. The reason for that paradox is the failure by successive Governments for several decades to address the question of supplying housing at an affordable rate for people on low incomes, as is the decline of social housing.

As Ms Randall eloquently pointed out, homelessness is more than an absence of housing. Nothing that homelessness organisations do to help people re-enter housing can achieve anything unless there is a supply of homes for people to move into.

In a crisis, there are a number of steps to be taken immediately that would not normally be taken. They have disadvantages one would not wish for but they are required in emergencies. I will mention one in a moment. First, we need to say something about the long-term solutions. While they are long-term solutions, they need to be implemented now. The primary long-term solution that needs to be put in place is a major investment in social housing. The reason for the problems we are facing, most dramatically in respect of families becoming homeless, is that we have ceased to provide affordable accommodation for families or to subsidise their accommodation in the way we used to. We have always failed in this regard with single people, particularly single men but also single women. As a nation, we always had a very good track record of ensuring families were protected but we no longer do. While there are some reports that family homelessness is declining, our experience on the ground indicates 39 families were recognised or registered as homeless in Dublin last month, June, representing an increase on previous months. There is a continuing acceleration.

The investment in social housing needs to be very substantial. At this stage, everybody recognises it needs to be through an SPV and should not affect Government debt. There is a sense that we have sorted out the economics and mathematics and that it is now time for the Government to move on and actually deliver. It is worth saying that the shift in the Cabinet is in some ways welcome. What we were told initially, which was that there was to be Minister with responsibility for housing, was very welcome. However, it is deeply confusing that, a few days after that statement, a Minister of State responsible for housing was appointed who is not a member of the Cabinet. Now there are two individuals responsible for housing, one of whom is a member of the Cabinet and the other of whom is not. The division of responsibilities seems to be such that one is responsible for social housing. What is the other responsible for? Is it other people's housing, real housing or the construction industry? We do not need confusion at this point; we need the Government to do what it said it was going to do, namely, treat this matter as a high priority, move on energetically and provide clarity. We are saying €0.5 billion needs to be invested in social housing this year to deliver 3,000 homes. This needs to rise to €1 billion per year in subsequent years. We are saying €0.5 billion at present because that is all the system is capable of absorbing in the first year.

My final point is on the immediate actions that need to be implemented. Threshold will deal with some of them. The main one to which I want to refer concerns tax reform in the private rental sector. There are many things that need to be done in that sector, and they need to be done urgently. At present, we are addressing the need to get people into homes in the private rental sector through rent subsidy. There is reluctance among some landlords to accept that, and there is a shortage of housing. We propose that there be a number of tax reliefs for landlords who accept people who are currently on the homeless list. This would create an incentive for them to take people from this category. It would save the State money in that people would no longer have to be kept in emergency accommodation, and it would be socially beneficial. This should be achieved in a tax-neutral way through the adjustment of other tax reliefs.