Dáil debates

Tuesday, 16 December 2008

7:00 pm

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)

The commitment entered into by the Government under the social partnership agreement, Towards 2016, was to achieve 27,000 social housing starts in the period 2007-09. In terms of delivery, we set out to reach the first one third of this target in 2007. By the end of 2007, we had exceeded this target with a total of 9,061 starts across the local authority, voluntary and co-operative housing programmes and the rental accommodation scheme.

An ambitious target of delivering 17,000 affordable homes in the years 2007-09 was set in the agreement. The challenge presented to local authorities was to increase the supply of affordable homes, which stood at over 3,200 units in 2006. Authorities rose to that challenge, delivering a significant increase in the supply of affordable homes. They delivered more than 3,500 units in 2007, an increase on the previous year of 10%, and 2008 delivery is expected to exceed 4,000 units. While short of targets, this is hardly surprising, given the significant changes in the housing market.

The results of the housing needs assessment, which I published last week and which show an increase in net social housing need of more than 30%, are a reminder of the importance of sustaining this unprecedented level of effort. The increase presents a challenging scenario. However, in light of our delivery record, which all indications suggest is continuing at a strong pace in 2008, the increase is more representative of economic drivers, such as movements in houses prices and an increased number of foreign nationals resident in Ireland, than it is an indictment of what we have achieved in terms of output and the range of tailored supports put in place.

Everyone knows the difficult economic climate in which we live and the pressures on the public finances. Despite these, the Government is providing €1.66 billion in funding for housing in the 2009 Estimates. While this is a reduction of 4% on the 2008 Estimate, it is still well ahead of where we were in 2007 and, taking account of the better value now to be had in the market, will allow us to maintain strong momentum towards meeting our commitments in the Towards 2016 social partnership agreement and our long-term goals under the NDP.

Despite the compelling demands and priorities calling on available resources, the Government has shown its commitment to minimising the impact of the tighter financial situation on the social housing programme. The reduction in resources in this area of activity has been kept to just 1.7%. Nevertheless, I accept that even small-scale reductions in funding present challenges for us and local authorities in terms of maintaining levels of activity at current levels. Therefore, we are determined to optimise the use of available resources.

One way or another, the extent of current housing need, notwithstanding the debate around how we best define it, demands a flexible and imaginative response to the structuring of our investment programme. In the context of a difficult economic transition, we must seek to maximise the return on public investment, as measured by the extent to which we are meeting housing needs. More than ever, we need to question the accepted ways of doing things.

One option that my Department will be pursuing with local authorities in the context of their 2009 investment programmes will be the use of long-term lease arrangements for social housing purposes to supplement traditional local authority construction or acquisition. This would provide a more cost-effective, targeted approach in line with the principles of the life cycle concept endorsed by the social partners.

Tackling homelessness, undoubtedly one of the most complex areas of my brief, will continue to be one of my top priorities in 2009. When I launched the Government's new homeless strategy in August, I outlined my vision for ending long-term occupation of emergency accommodation and the need to sleep rough, two challenging but achievable targets. The new strategy builds on the strong progress made under previous homeless strategies and sets out a vision to address adult homelessness over the next five years.

Since 2000, when the first homeless strategy was published, more than €600 million in State current funding has been made available for homeless services, as well as significant capital investment in new facilities. Despite the most difficult budgetary situation in decades, current funding for homeless services from my Department and local authorities will increase by 5% in 2009 to more than €62 million. This shows clearly the priority that I attach to addressing homelessness.

The next key step in this process will be the completion of a strategic implementation plan. The draft plan will be circulated later this week to the cross-departmental team on homelessness and the National Homeless Consultative Committee. The plan, when published early in the new year, will provide a blueprint for the range of actions needed to pursue the aims of the homeless strategy. We are already progressing a number of key measures that will feature in the plan. Yesterday, I announced a new scheme to provide both homes and supports through leasing arrangements on a long-term basis for formerly homeless people, with an initial target of 300 homes to be delivered in 2009. Work on development of this initiative is quite advanced and it will be launched through a competitive tendering process early in the new year.

A figure of 5,000 homeless nationally has been cited in some quarters, but the source for this figure is unclear, particularly given that the 2008 housing needs assessment only identified 1,394 homeless households. While I acknowledge this figure represents the number of homeless households that have applied for and have been considered eligible for social housing support, and therefore cannot represent the total number of homeless households in the country as a whole, I must also point out that it represents a decrease of 30% on the last assessment in 2005.

The results of the counted in survey in Dublin, which I launched today, provide a very refined and comprehensive method of measuring homelessness. The counted in report indicates that homelessness in Dublin has not changed significantly since 2005 and that there has been a small decrease relative to population growth. There has also been a significant and extremely welcome reduction of 41%, down from 185 to 110, in the number of people reported sleeping rough.

In common with society in general, many Members will probably have experienced, directly or indirectly, some form of anti-social behaviour. While it is crucial that we make progress in this area, we must be clear that local authorities cannot be expected to deal with the criminality associated with such behaviour. The latter is the responsibility of An Garda Síochána, using the powers available to it under the criminal justice code.

The role of local authorities arises in respect of their functions as the landlords of some 110,000 dwellings. In that capacity, they have a duty to secure and protect the interests of their tenants by preventing and addressing such behaviour in their estates. The Housing (Miscellaneous Provisions) Bill 2008 sets out to reflect the commitment of the Government in its policy paper, Delivering Homes, Sustaining Communities, to increase statutory powers and actions to facilitate a targeted approach to combating anti-social behaviour.

The proposed changes to the legislative framework include provisions requiring housing authorities to prepare an anti-social behaviour strategy and amend the definition of anti-social behaviour in the Housing Act 1997 to include damage to property, graffiti and impairment of the enjoyment of a person's home. While these are significant enhancements to existing anti-social behaviour measures, it was not possible, in the Bill as published, to deal with all issues arising. Discussions with the Attorney General's office in respect of strengthening the statutory supports available to housing authorities are continuing. I will be in a position to bring forward further provisions when the Bill is considered by the Dáil early next year.

The Bill also contains significant provisions to improve and expand on the range of home ownership supports available. We continue to believe that home ownership should be available to as many people as possible where this is their preferred option. In this context, tenant purchase plays an important role for social housing tenants. We are expanding the options for existing social housing tenants and households qualified for social housing support with the proposed introduction of the new incremental purchase scheme. This is an innovative scheme which involves transferring full title of a new house built by a housing authority or the voluntary and co-operative sector to the household on the payment of a proportion of the purchase price. The housing authority or voluntary or co-operative body will place a charge on the property, in its favour, in respect of the portion of equity not paid for, and this will decline over time until the charge is eliminated. In return, the buyer will pay his or her mortgage and accept full responsibility for the maintenance of his or her home.

In so far as the tenant purchase of apartments is concerned, Deputies will be aware that previous efforts to introduce such a scheme failed due to a range of difficulties. However, work is continuing on a model, based on the long-standing arrangements in the private sector for the ownership and management of multi-unit residential developments, which will address those problems.

Clearly, the transition from a rented social housing complex to a mixed tenure of privately-owned and social-rented accommodation adds an extra dimension to the legal and practical problems that can arise. Nevertheless, the ultimate aim of the Government is to establish a robust legislative framework that will stand the test of time for apartment buyers, apartment tenants who choose not to buy and local authorities. I hope that legislative proposals for a viable apartment sales scheme can be finalised in time for consideration during Committee Stage of the Housing (Miscellaneous Provisions) Bill 2008. In addition, the introduction of the new home choice loan from 1 January 2009 and changes to the provision of affordable housing will ensure there will be a closed loop in terms of routes to home ownership for households across the income spectrum.

We have also made great strides in modernising the private rented sector. A range of measures to update the minimum standards regulations for rental accommodation were recently approved by Government. These will provide a platform for bringing standards in the sector into line with the expectations of a developed 21st century nation. I am proud to deliver on this key Towards 2016 commitment and take a real step forward in significantly improving the quality of life of some of the most vulnerable members of society.

Regulations to give effect to most of the package will come into effect generally on 1 February 2009. They will apply in their entirety to all new first-time lettings from that date, while a four-year phase-in period will be provided in respect of existing lettings in order to allow them to comply with some of the more onerous provisions, such as the installation of dedicated sanitary facilities in each rental unit. The remaining elements of the package will be given effect by legislative amendments to be introduced via the Housing (Miscellaneous Provisions) Bill.

Successful enforcement of the regulations is critical. I will be emphasising to local authorities the continuing importance of rigorous and targeted inspections of rental properties. I will continue to make dedicated funding available to them towards these ends and I am satisfied that increased funding for inspection activity and the increasingly performance-linked basis for allocations are contributing significantly to a much improved inspections regime.

I wish to return to the issue of repossessions — the second main matter I intend to address. There is no doubt that some households are experiencing difficulties in making mortgage payments in the current economic climate. Good practice and good sense suggest that when people are in arrears, they need help. They also need reassurance that there is a way in which their difficulties can be addressed. Such people also require sound advice on what action to take. What these people do not need is to be frightened or be subjected to "foaming-at-the-mouth" scaremongering, with suggestions that robber baron banks and bully boy building societies are, like scrooges, lining up to take their family homes from them as soon as the spirit of Christmas disappears over the horizon. However, that is exactly what the Labour Party has done by making great play of the suggestion that this is some sort of massive ticking social timebomb in existence. The only timebomb of which I am aware is that Labour and Sinn Féin have put together, for political purposes, in order to shatter the legitimate and well-founded hopes of those who are experiencing difficulties in making mortgage payments that there are pathways through those difficulties.

I referred earlier to the importance of the facts. I will not allow the proposers of the motion to prevent the facts from getting in the way of their quest for a headline.

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