Noel Ahern (Dublin North West, Fianna Fail)

In my constituency in Finglas, we have had different schemes where houses were €175,000 and €195,000. There have been different affordable schemes under the 1999 scheme in all these areas, even in Dublin, and it is important to say that. Each year over 2,000 of these houses are being provided and they are being bought. It would be great to have more but they are being provided and they are meeting the needs of people in a particular income bracket.

Sustaining Progress adds to the range of measures designed to extend and promote affordable housing. Approximately 70 sites have been identified and the planning and projects are now getting under way. These projects and activity under Part V are capable of achieving over 10,000 housing units, which is the target agreed with the social partners.

As well as assembling the lands, the Government sponsored legislation last year, which went through the House just before Christmas, to facilitate lending institutions in providing mortgages for affordable housing clients.

I was pleased to hear that the first product had been announced by Bank of Ireland and will be extended through its branch network shortly. We expect other financial institutions to provide mortgages to people buying affordable housing. Under the arrangements put in place, such mortgages will equate to 97% of the purchase price of an affordable house under the relevant scheme. This important provision will avoid the problem of deposits to which Deputy O'Dowd referred. Availability of finance and new housing legislation will allow for the direct sale of Part V affordable housing units by builders and developers to eligible persons nominated by planning authorities. This process will ensure a more efficient and effective process for builders, local authorities and customers. We expect to deliver approximately 12,000 units of affordable housing over the next three years from the various affordable housing schemes.

Increased housing output provides greater opportunities for first-time purchasers by delivering more affordable homes through the market. In addition, the stamp duty changes announced in the budget have helped to open the second-hand market to first-time buyers by providing savings of up to €12,000 in some cases. Deputy O'Dowd referred constantly to the first-time buyer's grant which was €3,800, but other measures we have introduced, including the stamp duty changes, have saved many people money. The mortgage allowance was improved and extended to seven years while many of the people in affordable homes are receiving site subsidies of up to €38,000. As significant provisions have been made in recent years for first-time buyers, we should not concentrate constantly on what was a relatively minor measure. Information available to the Department suggests that first-time purchasers took out approximately 40% of all mortgages issued last year, which indicates that they are key players in the first and second hand housing markets. We should not fool ourselves. The active interventions of the Government ensure that more and more of our younger people are realising a wish to own their own homes. While I accept that some people in their 30s are still at home, one meets many people in their mid-20s who are buying their own homes.

The Government's commitment to housing is demonstrated by the resources we have committed. This year alone, we are spending €2 billion on housing measures, which is double the sum spent a mere five years ago. We are providing €840 million for the local authority construction programme, which is an increase of approximately €100 million since last year. The funding will facilitate approximately 5,500 housing starts by local authorities in 2005. We are also spending approximately €190 million on remedial works and regeneration schemes, the largest of which is taking place in Ballymun.

A great deal of work is being done to improve the quality of people's accommodation. Last summer, I was pleased to announce the new central heating programme for local authority houses, for the first year of which we provided €12 million. Just under 3,000 households were provided with central heating under the programme, 80% of which is funded by the Department and 20% by local authorities. We increased our allocation this year from €12 million to €30 million. The scheme is very popular among local authorities and while they have to provide 20% of the funding, the bids are in and great progress will be made in this and the next couple of years. Approximately 45,000 local authority houses do not have central heating, which is why the measure will greatly improve the quality of life and accommodation of many people.

Deputy McGinley mentioned the disabled persons and essential repair grants scheme. We are providing approximately €70 million under the scheme this year. Approximately €45 million has been provided for Traveller programmes, which is an increase of approximately €10 million since last year. We expect an expanded output in the voluntary and co-operative sector this year also.

Since the Government took office in 1997, the housing needs of approximately 86,000 households have been met through the provision of local authority housing, vacancies arising in existing houses and output under the social and affordable housing schemes. The needs of approximately 13,000 people on the waiting lists will be met under various measures this year. It is also expected that a significant number of the households currently in private rented accommodation will transfer to the new rented accommodation scheme. When we announced the scheme last July it did not attract a great deal of interest, but people at public representative level are taking more interest in it as it is being rolled out. Under the scheme, local authorities will assume responsibility for accommodating supplementary welfare allowance recipients of 18 months or more continuous duration. We set this period as we felt that when someone has been in receipt of rent allowance for 18 months, he or she has a long-term need. People with short-term needs will continue to be the responsibility of the Department of Social and Family Affairs.

It is estimated that approximately 58,000 people are in receipt of rent allowance, up to 30,000 of whom will form the target group for the new scheme. Over a couple of years, they will move from the current system to the local authority scheme which will allow them to have their long-term housing needs addressed. People in receipt of rent allowance have always been worried about the expiration of leases but the new scheme will provide them with long-term security. We have set a target of September 2008 for completion of the implementation of the new arrangements, which will begin on a phased basis. All local authorities are due to begin to implement the arrangements at different stages this year.

We introduced legislation on the private rented sector last year, which was very important. The Act provided for a modern, efficient, user-friendly and, we hope, largely litigation free legal framework for the private rented sector. Key provisions relate to improved security of tenure, the restriction of rents to market rates, the statutory dispute resolution service through the private residential tenancies board, the creation of a registration system and clarification of the obligations of tenants and landlords. The Act has been of great help to people in private rented accommodation who will benefit further from security of tenure when they become local authority tenants. In time, they will have the freedom to work as increased incomes will not, as currently, affect entitlements to rent allowance. Such provisions will make them more secure in terms of their long-term housing needs.

We have done extraordinary work in recent years since the integrated and preventative homeless strategies were put in place. Those strategies were launched in 2000 and considerable progress has been made in regard to them. As part of the local homeless action plans, accommodation ranging from emergency hostel-type accommodation to transitional accommodation to more long-term accommodation facilities have been provided in various locations across the country.

A total of €51 million has been made available for accommodation and related services for homeless persons, bringing to €236 million the amount provided for such services since the introduction of the strategies in 2000. In addition, the Department of Health and Children provided between €20 million and €25 million per year for the same period for the care of homeless people.

Five-year action plans have been introduced in conjunction with local authorities and voluntary agencies. Multi-annual capital funding provides certainty to local authorities and allows them to plan their strategies over a five-year period. That is the way forward. Funding has been guaranteed for a five-year period. Now that most of the action plans have been agreed, local authorities have been encouraged to move ahead and begin work on the basis that the funding is in place and is secure.

The achievements I have outlined demonstrate the Government's commitment to responding to the various housing needs that exist, particularly those faced by first-time buyers and those on lower income and vulnerable groups. The Government is committed to reviewing polices as necessary. At present we are carefully examining the major NESC analysis and other reports which have a bearing on housing issues. The Government will consider shortly what new responses may be appropriate in the short and medium term in light of this examination. However, it is important to note that the NESC recognised that the general thrust of policy is well directed.

It is important that we maintain an urgent focus on delivery. This is what the Government is now doing. Through our engagement with the social partners and through local authority action plans for social and affordable housing, we are ensuring that an effective response is made to the broad spectrum of housing need. The evidence exists in terms of increased output of housing and increased social and affordable housing provision. We will continue to accord the highest priority to housing issues.

The motion before the House is rather hollow. Perhaps it was unfortunate from the Opposition's point of view that the statistics which were published today showed there was a 1% increase in house prices in three months. As I stated earlier, we expect the figure to be approximately 7.5% for the year, which is an improvement on recent years.

The Government has delivered real and coherent housing responses in the face of the unprecedented housing demand which existed due to the booming economy in recent years. As I stated, significant numbers of people in the 25 to 34 years age group are setting up home. We have not simply been addressing the specific needs of one group or one sector, we have been addressing the needs of all, vulnerable groups, Travellers, the homeless, those in social and affordable housing and people in the private market.

We are aware of the challenge that lies ahead of us. We are doing our best and have made great progress, particularly when one considers that housing output, which was not much more than 20,000 units per year, is now 77,000 units. That is an extraordinary housing output. We have reached a level where supply equals demand. I am pleased that the forecast for house price increases this year is under 10%.

I look forward to ensuring the demand for housing is met and that we continue to get good value for the €2 billion of taxpayers' money which we are spending this year in providing for those people who need help from the State through social and affordable housing, Traveller housing, voluntary sector housing and so on. We have made a great deal of progress in recent years and I look forward to continuing that work.

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