Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

In regard to vacant properties, we have asked for an updated audit. I recently allocated almost €20 million to local authorities throughout the State to bring housing stock back into use. It is expected that some 1,500 of those vacant houses will be turned around. We are allowing €15,000 per unit, which would be 75% of the cost, with local authorities providing the remainder from their own resources. This comes under the retrofit scheme, under which I have directed funding for this purpose for 2009.

Deputy Tuffy referred to recent "Drivetime" reports. I insisted on taking part in that programme because of the inaccuracies being put forward and the one-sided debate that was taking place. Some of the statistics were also challenged by a representative of Dublin City Council. For example, a figure was given for the purchase of a house but it was not pointed out that this property included an adjacent site. That information was conveniently omitted. In another instance reference was made to the high price paid for a house without any indication that the local authority was using it to accommodate a family with special needs. These circumstances must be taken into consideration.

There is no question that local authorities should vacate the market simply because market prices are now low. Local authorities must continue to provide houses for those who need them. In regard to value for money, there is significant expertise within the local authority system. Those people are in position to value the market and to set prices. It is important to note what has been done in recent years in response to pressures on affordable housing. Affordable housing output increased significantly between 2004 and 2008, reaching 4,500 units last year.

As everyone knows, affordability and the market have matched recently. The Department closely monitors developments as regards unsold affordable housing. We issued further guidelines to local authorities on their affordable housing stock in which we set out a number of options. We also asked them to reduce prices to ensure they are able to offload affordable housing units. The Department has been informed by the local authorities that they are in a position to dispose of approximately 1,000 units on the open market. We have also asked them to consider other options if they are unable to sell these units under the affordable housing scheme. For example, the Housing (Miscellaneous Provisions) Bill 2008 provides for an incremental purchase scheme. Individual local authorities may consider offering potential buyers the option of purchasing under this scheme.

I have also indicated that in certain circumstances, when local authorities are experiencing pressure on the social housing side, I would be willing to consider other options. They must, however, in as far as possible continue to take a sustainable communities approach to social and affordable housing developments.

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