Noel Ahern (Dublin North West, Fianna Fail)

Certain problems arose over the years and this is our opportunity to sort them out. The new system will enhance the capacity of local authorities to respond to demands for a graduated and flexible system of housing supports to meet long-term needs. RAS is a supply based social housing support designed to cater for the long-term housing needs of rent supplement recipients. It is estimated that approximately 60,000 households are in receipt of rent supplement, just over half of whom have been on rent supplement for more than 18 months.

The success of RAS will depend on a strong rental market. Local authorities have a range of options for tapping into this market, including entering into direct contractual arrangements with existing accommodation providers in the private rental sector, bringing forward existing and new accommodation from the voluntary and co-operative housing sector and securing additional accommodation through new build PPP projects, which would be financed, developed and operated on a long-term basis by the private sector but made available exclusively for households nominated by local authorities.

The rental accommodation scheme should be seen as part of a graduated range of housing supports and an additional supply option for authorities. Households can indicate their preference to be accommodated by local authorities under RAS, apply for local authority housing or be considered for both. It is important that tenants are afforded choice as only 25% of rent supplement recipients have expressed an interest in being accommodated through local authority housing. The new approach provides an active, supply based approach to meet long-term housing need instead of depending on short-term rent allowance payments.

Roll-out has commenced in 15 authorities representing over 70% of the transferable households on rent supplement and all remaining local authorities are due to implement the new arrangements by mid-2006. The Government has allowed four years, to the end of 2008, to complete implementation of the scheme. I see this approach to meeting long-term social housing need as facilitating a more flexible response by housing authorities that will at the same time help improve accommodation standards in the private rented market and will give more choice and greater long-term security to tenants. The scheme marks a fundamental change in housing policy and will improve co-ordination of housing activities by strengthening the role of local authorities in housing provision and support services. In future years, RAS will be viewed as one of the most significant Government interventions in housing.

Beyond the provision of housing, a requirement will remain for the provision of short-term income support to households unable to meet their immediate accommodation needs from their own resources. My colleague, the Minister for Social and Family Affairs, Deputy Brennan, will speak to that matter.

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