Mr. Terry Dunne:

The Government recognises that the financing of housing is a major issue. The Construction 2020 action plan sets out a number of actions in terms of developing sustainable financial models for the construction sector. We need to ensure we have a sustainable sector that is not driving the economy but plays its role within it.

There are various mechanisms being considered, such as special purpose vehicles in terms of providing money for social housing. It is recognised that finance is an issue.

The Deputy asked how we define exceptional circumstances. We are in the process of drafting the Bill and engaging with the Parliamentary Counsel. Guidelines will be issued when the Bill is enacted and the scenarios that are envisaged will be set out. I accept Deputy Keane's point that we had issues with the interpretation and enforcement of Part V of the previous Act which meant that the level of social housing we wanted was not provided. We have learned from that.

Senator Keane also raised the issue of a developer breaking up a site into sections so as not to have more than nine houses in each tranche of development. That point was well made but it is covered by the existing planning legislation, whereby if a developer owns adjoining lands, that the developments can be combined. The local authority could tell the developer when he applies for permission to develop the adjoining lands, that as there will now be a second tranche of nine houses, he will build 18 houses and therefore will have a social housing liability.