Noel Ahern (Dublin North West, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"acknowledges the achievements of the Government in:

—increasing housing supply as the key response to the broad range of housing needs;

—ensuring that over 500,000 houses, equivalent to one third of Ireland's total housing stock, have been completed in the past 10 years;

—facilitating the 11th successive year of record house completions through the addition of 80,954 in 2005;

—providing SWA rent supplement payments to 60,000 people and introducing the rental accommodation scheme, RAS, to provide improved and more secure arrangements for SWA rent supplement recipients with long-term housing needs, thereby reducing dependency on the supplementary welfare allowance scheme;

—putting in place a range of initiatives to expand the supply of affordable housing including the establishment of the affordable homes partnership to address requirements in the greater Dublin area;

—modernising and improving the operation of the private rented sector through the introduction of new legislation and the establishment of the Private Residential Tenancies Board;

—developing and implementing an integrated strategy on homelessness, effective programmes for Traveller accommodation and an expanded role for the voluntary and co-operative housing sector; and supports the Government vision for housing as set out in the new housing policy framework

—Building Sustainable Communities, including plans to substantially expand investment over the coming years and develop a range of initiatives so that the maximum number of people can access high quality and affordable accommodation; and endorses the action set out in the framework to provide appropriate accommodation responses for those on rent supplement who can benefit from the rental accommodation scheme, including contributing to addressing issues relating to the elimination of poverty and employment traps."

I propose to share time with the Minister for Social and Family Affairs, Deputy Brennan. I welcome the opportunity to outline the very considerable successes this Government has achieved since 1997 in increasing investment in housing, expanding the range of housing supports and generally facilitating a vibrant housing market. It has been perhaps the most remarkable era for house building since the foundation of the State, a circumstance helped in no small measure by the priority given to housing by this Government. I apologise if I sound like I am congratulating myself but I am only being factual.

Over the past ten years housing demand has been both a cause and effect of our prospering economy. The economic factors giving rise to increased demand are real and, for the most part, welcome. The story is one of unprecedented and sustained economic growth, high employment creation with record numbers of people at work, including an increase of 90,000 in 2005 alone, growth in disposable income that has been stronger than in any other industrial country, low inflation and low interest rates.

Along with economic prosperity has come significant demographic change. Ireland's population has increased by around 15% in the last decade, with growth in the number of households much higher at 41%. The result has been to drive the demand for housing beyond a level at which it could be met at traditional levels of supply.

These economic and demographic trends are part of our continuing economic success. We must view increased demand for housing as the inevitable consequence of a dynamic economy and a changing society. Embracing these positives, this Government has focused on gearing supply to meet rising demand. We have delivered and will continue to deliver.

In 1996 less than 34,000 new homes were built. In 2005, the 11th year of record house completions, there were over 80,000. To put the scale of activity into perspective, over one third of the country's houses will have been built in the past ten years. Crucially, we are delivering where demand is most acute and have increased supply to 18,000 units in the greater Dublin area, by some 7%.

All indications suggest that high levels of housing output will be required into the future. Recent projections from the CSO suggest that, in the period to 2020, Ireland's population will increase by approximately 1 million people. A population increase of this magnitude requires that we maintain a high level of housing output with an annual supply of 58,000 units between now and 2020.

What has been achieved has been remarkable and the Government will continue to provide investment in public infrastructure to underpin a strong housing market. We also understand that the housing market on its own cannot solve all our housing issues. There is a role for direct State intervention in support of those who cannot afford to purchase or rent suitable accommodation from their own resources. The provision of this support remains a key objective of Government.

In the last budget €54 million additional capital funding was provided for housing in 2006, which means an additional €100 million available this year for social housing, and the capital envelope has been increased which amounts to €300 million extra over the next three years. That will take total Exchequer funding for social housing over the next three years to €4 billion, which is almost 20% higher than spending in the last three years. Deputy Gilmore mentioned the national development plan, but spending is up by 8% over what was projected, notwithstanding the output statistics.

See this speech in context