Michael Noonan (Limerick East, Fine Gael)

It is ironic to talk of social deprivation in my constituency following the Second Stage debate on a finance Bill introduced by a Government that sees no problem in dedicating billions of euro to the broken Irish banking system which, at the same time, cannot give a single euro to a plan it has been committed to for over two and a half years.

The Limerick regeneration project has ground to a halt because there is no capital from the Government. The Minister of State is familiar with the project. It affects areas of Limerick that historically have been bedevilled by crime and social deprivation and which have a very poor housing stock. Morale was raised and confidence given to the 2,300 families that live in these areas when Mr. John Fitzgerald brought forward his report to regenerate these areas in the city for which he had cross-party support. All the Deputies contributing here tonight have supported the programme, and there was a sense of excitement throughout the city. New hope was given to families in these areas. Staff came in, led by Mr. Brendan Kenny, and things were moving along.

Obviously, the slump had an effect. The money which was supposed to come from private investors did not materialise but there was nothing new about that. However, the money which was supposed to come from the Government was expected, and the tap was suddenly turned off this year.

The Minister's Government and his colleagues in Cabinet have said that €25 million is being given to Limerick. In terms of the breakdown of that, approximately €7 million is for the wages and salaries of the staff of the regeneration agencies; some seed capital is being provided to support social programmes which are under way; and the other €17 million or so is being given to Limerick City Council for the purchase of houses in the city suburbs to be used for social housing purposes. That €17 million is in line with the kind of allocations every local authority is getting for their housing programme either to build or to purchase and has nothing to do with the regeneration of the city.

We are at the stage now where the position is worse than it was before the regeneration agencies commenced their work. Nearly 400 houses have been demolished and not a single brick will be laid or a single sod turned in 2010 to provide a house for a single family who have invested their futures in the commitment made by the local Minister, Deputy O'Dea, his Cabinet colleagues, and particularly by the Minister for the Environment, Heritage and Local Government, Deputy John Gormley.

This is a disgraceful abandonment of families living in the most deprived areas of the city. These are decent families who are sending their children to school and doing their best but needing the strong hand of the Government to lift them back to the standard of housing and standard of living expected in this day and age.

I cannot understand how a Government could turn off the tap completely in terms of funding. It would be reasonable to say that in times of scarce resources the programmes should be done over 12 years rather than ten years or that the regeneration should be stretched to a 15 year period but to turn the tap off completely so that nothing is happening this year, and the regeneration staff effectively having no continuing work to occupy them in 2010, is appalling.

I have two suggestions. First, the Minister of State should ask the senior Minister to provide approximately €50 million this year to ensure that some of the housing projects that are ready to go can be given the go-ahead. If there was building activity with a prospect of houses in 15 months' time, confidence will be restored.

Second, the governance structure of the agencies is very poor. There are two agencies. They should be amalgamated, given a stronger legal base and the power to negotiate public private partnerships with the private sector, and allowed borrow money. If that is done the gap left by the Government could be filled by other means but it cannot be done currently because of the weak legal structure of the agencies. If the Minister examines that he would see it is a cost-free way of proceeding.

See this speech in context