Dáil debates

Thursday, 26 March 2009

Housing (Miscellaneous Provisions) Bill 2008 [Seanad]: Second Stage (Resumed)

 

3:00 pm

Photo of Eamon ScanlonEamon Scanlon (Sligo-North Leitrim, Fianna Fail)

This Bill provides a modern framework for delivering social housing. The legislation in this area dates back over 40 years and the Bill will give effect to the social housing reform measures that are detailed in the policy document published in 2007, "Delivering Homes, Sustaining Communities". That document set out a vision for the development of the Irish housing sector over the next ten years. It looks at delivering quality sustainable housing in a strategic manner. It also looks at building sustainable communities and improving the quality of life for all.

Food and shelter are a basic human necessity and the Government has an obligation and a duty to assist those who are unable to help themselves. Fianna Fáil in government has a proud tradition of looking after the less well off and the enactment of this Bill carries on that tradition.

The priority afforded to housing by this Government was articulated in Towards 2016, the national development plan and the Government's statement on housing policy, "Delivering Homes, Sustaining Communities". The Bill sets out the role of housing authorities in providing housing services, including the provision of social and affordable housing support, across a range of schemes for the purposes of meeting a household's need. It puts housing services plans on a statutory footing and also ensures that stakeholders are given the opportunity to comment on draft plans.

While the Bill does not alter fundamentally the distribution of housing functions across the different levels of local government, it provides for better planning and integration of services by providing for housing services plans which take a broader strategic perspective at county and city level. The Bill ensures, when assessing local housing needs, that attention will now be paid to the national strategy. This is to ensure that communities are built that meet the diverse needs of the residents, are safe and inclusive, well planned and well run.

The Government commitment under the social partnership agreement, Towards 2016, was to achieve 27,000 social housing "starts" over the three year period 2007-09 as a whole, not 27,000 in each of the three years. In terms of delivery, we set out to reach the first one third of this 27,000 unit target — or 9,000 starts — in 2007, the first of the three years in the target period. By end-2007, the target had been exceeded with a total of 9,061 starts achieved across the local authority and voluntary and co-operative housing programmes and the rental accommodation scheme. Last year saw significant delivery under the main housing programmes. The target is a further 9,000 social housing starts this year, which will be a remarkable achievement in the current economic climate.

Of course the financial crisis means that more people than ever will require housing assistance. In 2009 €1.54 billion in funding was secured for social housing as well an additional €80 million under the capital loan and subsidy scheme for voluntary housing projects. To further meet demand, recently a new long leasing initiative was launched, under which authorities will procure properties on long term leases of ten to 20 years to meet demand for social housing. A fund of €20 million has been made available and will, I hope, help reduce waiting lists for social housing. The Minister of State with responsibility for housing, Deputy Michael Finneran, has said he expects that through this measure at least 2,000 additional homes will be leased this year.

There are measures and funding in place to ensure that the Government supports the less well off and is committed to meeting their housing needs. Of course the recession means there is a greater demand for social housing while public finances are under greater pressure than ever. This Bill, however, is evidence of a commitment to addressing these needs and to putting them on a better legislative footing.

As regards some of the initiatives, the home choice scheme is an excellent measure, but the €40,000 income limit is somewhat restrictive in rural areas and is holding people back. I have spoken to the Minister of State about this on a number of occasions. People in rural areas find it difficult to reach that €40,000 income target. The scheme has great potential, but many of those who could avail of it at a lower income scale can now buy three-bedroomed semis in rural areas for €140,000 or €150,000. They do not need €280,000, so perhaps the officials and the Minister of State might have a look at this.

As regards affordable homes, from my experience in respect of the areas I represent, the scheme has worked well in certain areas while not so well in others. The take-up was not sufficient, for instance, as regards some 12 affordable houses built in my home town — and that was in the good times when house property prices were running high. The local authority had to take them back into its stock and allocate them to people on the housing list. The scheme will work in towns close to the centres of population such as county towns or even seaside villages, but in my experience not in the small villages.

The shared ownership scheme has been excellent and has worked very well. When I was a local authority member I had contact with a good many people who got onto the housing ladder under that scheme. After two or three years people who avail of the scheme normally buy out their properties. At least they have been able to get onto the housing ladder because of the scheme. In recent times, however, I notice that some people have availed of the scheme whose circumstances have improved. I know of two cases where a person is paying half mortgage and half rent, and because circumstances have improved the rent now nearly comes to €300 a month. Taking the two payments together, those people now find themselves paying more that they would have had to pay, with a straight mortgage. I wonder whether the Minister of State might take a look at that, perhaps, with the local authorities. The numbers are not large, but nonetheless such people are trapped into a situation whereby they are probably paying up to €600 a month, whereas they might have to pay less with a straight mortgage from a local authority. They would not then need to pay rent, and whatever is being paid comes straight off the mortgage balance.

As regards voluntary housing agencies, I was involved in a local organisation which built 28 houses for elderly people. It was a fantastic scheme and those people came in from rural areas to live in the town. We were very fortunate that the site was close to a nursing home, the church and railway station. It has given those people a new life and as they move on, new people move in. However, families living in these voluntary housing scheme houses cannot, unfortunately, buy their homes. Irish people like eventually to buy their own homes but the tenants of these houses are unable to do so. Perhaps some way should be found to give them the opportunity to do so.

People are delighted to get such a home. They get that home because they face certain financial circumstances. However, when their circumstances improve, their rents go up. However, they are in a catch-22 situation because even though their circumstances have improved, they can never own their homes.

As a public representative, I know there are many single fathers who, for one reason or another, find themselves homeless. They are not regarded as a high priority by the local authorities, although I know it is very difficult to house everybody. There should be some policy in respect of such people. Quite a few of them, perhaps through their own fault, find themselves with no home, in particular people who are unemployed. They find it difficult to get accommodation and they are very low on the needs scale in local authorities. Sometimes they can find it very difficult to get rent allowance. Will the Minister of State consider doing something to alleviate some of the pressures on those people?

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