Dick Roche (Wicklow, Fianna Fail)

I welcome the opportunity for this debate on housing issues. Housing is as important to the modern dynamic Ireland at the beginning of the 21st century as it was to our newly established State with its burden of urban slums and rural deprivation in the early years of the last century. It has always been a central plank in Fianna Fáil policy and is also central to my Department's mission.

Good quality housing comes from good housing policy and good quality housing supports social stability, promotes social inclusion, is fundamental for family life, is critically important in providing shelter and security for older people and is a key element of social capital. Good housing is the bedrock of good communities. A home is more than four walls; it is a place of shelter and comfort where people can grow and develop and make the most of life's opportunities, a haven where we overcome life's traumas and savour its triumphs.

Given our high rate of home ownership, it is clear that the people view having a home as an important stake in the community and in determining civic values. Apart from the social dimension, good quality housing is also fundamental to our economic progress. Housing as an important element of our national infrastructure has a key role to play in maintaining our competitiveness. It is even a factor, for example, in inward investment decisions as a quality of life indicator. For all these reasons and many more, we must provide housing in Ireland that is of a quality and value fully comparable with the best in the developed world.

In progressing Ireland's development since taking office in 1997, the Government has paid particular attention to housing. Taking 1996 as the point of reference, the country's population has grown by an unprecedented 8%. The response in housing supply has been even more dramatic. Over the past ten years 500,000 houses, almost one third of Ireland's housing stock, have been built. Any objective commentator would regard this as a remarkable level of achievement.

I wish to give the House a brief outline of the other achievements. The supply of housing has been transformed since 1997. Last year almost 77,000 units were completed, double the level achieved in 1997. Our rate of house building at 19 units per 1,000 of the population is almost four times the western European average. Housing supply in the greater Dublin area which averaged about 9,000 or 10,000 units per annum in the late 1990s has increased to almost 17,000 last year.

The Government has introduced adjustments to the tax regime to assist the first-time buyer and has introduced a broad range of targeted schemes to assist those seeking affordable housing. It has increased investment in social and affordable housing. Since 1997 the needs of 86,000 households have been met through various social and affordable housing measures.

The Government has concentrated on improving quality as well as quantity. Major funding has been devoted to regenerating run-down estates. For example, Ballymun is among the largest regeneration projects under way in Europe. The central heating programme introduced last year is making huge improvements to people's lives, particularly for pensioners. This scheme has been well funded and I am particularly anxious, as Deputies on all sides of the House would be, that good value for money is obtained from that scheme.

In overall terms, the quality of Ireland's housing stock is very high. The majority, 92%, of households surveyed during the national survey of housing quality for 2001 to 2002 expressed satisfaction with the general condition of their accommodation, their area and their neighbourhood.

These achievements did not just happen by accident. Government actions over years have supported the strong increase in overall housing supply and increased construction employment. Current policies have built on good foundations.

Housing policy has been always a central plank of Fianna Fáil policy. In recent years, our policies have done the business. When the National Economic and Social Council undertook its analysis and review of the Irish housing sector in 2004, it concluded that the general thrust of housing policies is correct.

In terms of housing output, Ireland has had rates of house building not seen anywhere else in Europe in recent years. To put the scale of activity into perspective, three out of every ten homes in Ireland have been built within the last ten years, nearly 500,000 units in all. Output in 2005 is likely to be broadly in line with 2004. This exceptional rate of house building in Ireland has been facilitated by improvements made by this Government in the planning system and substantial investment in infrastructure in recent years. Increased output has brought greater stability to the housing market. The general consensus among commentators is that current prospects for stability in the housing market, with balanced sustainable growth, are good.

A strong housing market has a positive effect on the economy as a whole, not just through its contribution to gross domestic product but also through its influence on construction employment and its knock-on effect in other economic sectors. I remind the House that 77,000 new home units were brought on stream last year. This has been a major boost to a series of industries besides building and construction. It has certainly given a boost to the furniture industry and the furnishing business.

Between April 1994 and December to February 2005, construction employment grew from 92,000 to 233,000, representing a cumulative growth of 155%. More recent figures suggest even further growth in this area. The house building industry has made a considerable contribution to this growth. The residential construction component of total construction output grew from 51% in 1994 to 65% in 2004. These are not just blank statistics. There are 240,000 people working in the construction industry and this means 240,000 wage packets and secure work at home for people who previously would have been forced to go abroad. It is a remarkable turnaround in an industry which Deputies on all sides of the House will wish well.

The gross value of housing output was slightly in excess of €18 billion last year, the equivalent to 14% of gross national product. In 1994 housing output represented just 7% of GNP, but GNP has grown rapidly during the period 1994 to 2004 and doubling the housing output in GNP terms is therefore all the more significant. With our population forecast to grow to 5 million by 2020, the importance of the sector is set to remain robust.

On the issue of housing affordability, in analysing the housing boom, the National Economic and Social Council commented that given the remarkable strength of demand, a significant increase in house prices was inevitable. Supply is the key to responding to this unprecedented demand. Supply and demand is not rocket science. This Government has placed a strong focus on policies to boost supply. It is not often acknowledged that house price increases have moderated greatly since annual house price inflation peaked at a phenomenal 48% in 1998. By comparison, house prices rose in 2004 by about 11% over 2003. This is not an issue which should be treated with complacency and it should continue to concern us, but it is a significant change. It is incumbent on Deputies on all sides of the House to work to reduce house price inflation, especially at the point where people enter the market for the first time. Most commentators predict further price moderation this year.

The overall trend in affordability of rents in recent years has been generally positive, particularly having regard to improvements in net income. Recent reform of landlord-tenant legislation should help promote investment and professionalism in the sector and enhance its attractiveness as a housing option. This option is underdeveloped in Ireland compared with other European countries.

The Government has been particularly concerned to improve access to affordable housing. We have promoted a range of schemes for low-income households in recent years such as the shared ownership scheme and the 1999 affordable housing scheme. Over 20,000 households have availed of these schemes since their inception. The various affordable housing schemes, including Part V and the Sustaining Progress affordable housing initiative, will deliver substantial output over the coming years. Over 12,000 units in total will be delivered from all the affordable schemes between 2005 and 2007.

The Affordable Homes Partnership, established by the Government, will also add impetus to the delivery of affordable housing, particularly in the greater Dublin area. Although the partnership was only established last August, it has made significant progress in the short intervening period under the stewardship of its chairperson, Mr. Des Geraghty, and a dynamic board. I have considerable expectations for the Affordable Homes Partnership. By bringing a particular focus to a specific part of the market, really significant advances can be made.

Earlier this month, the partnership placed advertisements inviting expressions of interest from parties capable of providing and developing land, mainly for affordable housing. Once the six-week period for submissions has passed, the partnership will give early and careful consideration to the proposals received, with a view to identifying those lands that are suitable to be advanced quickly.

The Affordable Homes Partnership is also giving early attention to the potential for land swaps. The aim is to build on the highly successful Harcourt Terrace pilot project undertaken earlier this year. The result of that exercise is that 193 families in the South Dublin County Council area are to get access to homes at affordable prices, within a significantly shorter timeframe than traditional delivery mechanisms could have achieved.

If Members, and particularly spokespersons, have not already had the opportunity to do so, I highly recommend that they call to South Dublin County Council headquarters to see the quite remarkable work it is doing in marketing affordable housing and in providing a one to one advice consultancy for people in the system. It really is worth seeing. If other councils were to follow the initiative of South Dublin County Council it would have positive effects.

In effect, under the Harcourt Terrace deal a building which was little more than a shed on less than half an acre of land was traded for 193 affordable homes, which is a very good deal by any objective reckoning.

Today the partnership published advertisements commencing the next land swap project. That project will involve a property at Broc House in Nutley Lane. It is being offered in return for turn-key affordable housing. A series of further swap projects on similar lines will be brought forward in the months ahead.

NESC suggested that Part V was "the single most important policy development in recent decades". This innovative legislation will make a substantial contribution to the delivery of social and affordable housing output over the coming years. It also has provided a basis for better social integration and that is a side of Part V which has not received sufficient attention. The social integrational impact of Part V, properly operated by local authorities, will be an aspect on which we will look back in the years ahead as good.

The number of units delivered through Part V arrangements is dependent on the level and commencement of private sector residential development and, crucially, on the nature of the agreements entered into. As members of this House will know, Part V requirements do not apply to all residential developments.

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