Oireachtas Joint and Select Committees

Thursday, 2 June 2016

Committee on Housing and Homelessness

Department of the Environment, Community and Local Government and the County and City Management Association

10:30 am

Mr. Eugene Cummins:

There is no doubt that the fact that local authorities have not been building social housing for quite some time is adding to the problem. So is the fact that the economy has improved and people are coming back from abroad, finding jobs and displacing those who were able to afford to rent in the private sector heretofore. There are now more people competing for private rented properties, the population has increased and then there is the absence of the private sector in terms of building houses. I must emphasise, while in no way trying to downplay the duties of local authorities, that we must partner with the private sector and others to provide the level of housing that is required. As Ms Nic Aongusa pointed out, it is not just about building. It is also about leasing and private rental, as set out in the social housing strategy.

While I have the floor, I would like to speak about the 10% issue. The State has in its ownership large tracts of land but we are not saying that on every piece of land, only 10% of units can be used for social housing. It totally depends on where that land is located. For example, a fairly sizeable site in the middle of Dublin city could be fully built out with social units because, in the overall context of the city or the particular area, there is mixed tenure there already. However, in a smaller town building out a complete site for social housing would lead to the problems with which we are all familiar. I want to emphasise that it is not 10%, full stop.

Approved housing bodies and local authorities are in the business of providing social housing but are not in the business of providing shops, hotels, restaurants, churches and so on. We need the involvement of the private sector, which worked in the past. There are lessons to be learned with regard to credit but it did work in the past and proved to be a very effective solution in terms of meeting the needs of society.