Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I am glad of the opportunity to comment and make some input into this debate. I am here to discuss the significantly reduced provisions for the Department for 2011. As the Minister, Deputy Gormley, has already outlined, the Department faces a combined cut across both capital and current spending of €595 million, equivalent to a 27% reduction on our 2010 provision.

As the largest programme area within the Department, the housing budget must shoulder a significant proportion of the overall burden of the adjustment, of some €350 million, with the bulk of the saving coming from the main local authority programme. However, this figure really only tells half of the story. If we measure success by how much money we throw at a problem, social housing some tough years ahead, because the moneys that were available in recent years will no longer be available for the construction and acquisition programmes to which we have become accustomed. Fortunately however, long in advance of the downturn in the public finances that gave rise to this tough budget, the Department has been putting in place a programme of reform that has started to transform the way in which housing supports, social housing supports in particular, are delivered. At the heart of this transformation agenda lie equity, fairness, choice and value for money. Its delivery was always anticipated to yield major savings in the housing budget as reliance on the tried and tested forms of provision decreased and more flexible and cost effective mechanisms which are more adaptable to the different phases in the life cycle were developed. The scale of the adjustment required to restore the public finances may have added further impetus to the process of change my Department has already been driving but let no one claim that fiscal expedience is driving this programme reform.

Similarly, focusing only on the extent of the reduction being applied to one area of the housing budget ignores the fact that in the areas which are focused most sharply on meeting the needs of the most vulnerable and the most disadvantaged households, the provision will be maintained and, in some cases, slightly increased. In a budget delivering cuts of more than €6 billion, this is a remarkable demonstration of my deep commitment to sparing pain from those who can least take it.

I will now outline some of the main elements of housing provisions for 2011. The Minister for Finance indicated to the House that I will explore changes to the tenant purchase arrangements. I will introduce revisions during 2011 to the existing tenant purchase scheme to make it more attractive, particularly for longer term tenants. Throughout 2011 tenants will be able to avail of a discount of up to 45% on the market price. This is an increase from the maximum 30% discount normally available.

A key aim of Government housing policy is to support the development of sustainable communities with a mix of residents and in so far as possible in the tenure of their choice. The tenant purchase scheme has made a significant contribution in this area. The more favourable tenant purchase scheme will offer a significant number of long-term social housing tenants better opportunities to purchase their homes. My Department estimates that 45,000 people qualify for the scheme.

My Department is currently working to ensure that full details of the scheme, including details in respect of the loan finance which will be available from local authorities, will be made available in the coming weeks to permit the expanded scheme to be introduced from 1 January next.

One of the key areas where this Government can be justifiably proud has been our determination to tackle homelessness. This commitment was enshrined in our strategy document on homelessness, "The Way Home", which I launched in 2008. Despite the fiscal difficulties encountered in recent years, my Department maintained funding levels in this sector in 2008 and 2009. I am glad to report that our continued commitment to tackling homelessness will see our expenditure in 2011 exceed €53.4 million. This is a nominal reduction from approximately €2.5 million but in real terms we are maintaining our level of commitment.

I strongly value the unique contribution the voluntary and co-operative housing sector makes to the provision of social housing generally and especially to households with particular needs. Tremendous results have been achieved over the years through our partnership with this sector. This is reflected not just in the levels of financial support but in the numbers of houses provided or supported.

Next year, I will provide within the overall funding for the capital assistance scheme a dedicated pool of funding for mixed funded social housing projects in the voluntary and co-operative housing sector. A total of €15 million will be provided as a capital element to be used by approved housing bodies to leverage private loan finance from the Housing Finance Agency and other lending institutions. Combined with a further €75 million directly invested under the capital assistance scheme, this will ensure that the momentum built up over recent years by the voluntary and co-operative sector can be continued with a particularly active role under the social housing leasing initiative.

Since the launch of the new suite of adaptation grants for older people and people with disabilities in late 2007, the level of demand and activity across all local authorities has been considerable. This is testament to the importance of grants as part of an overall continuum of care and support for independent living at home among target groups. This year's allocation of €65 million, along with the competitive rates that prevail in the building industry, will provide assistance to more than 11,500 households. The total provision in 2011 will be almost €82 million when the local authority contribution is taken into account. This reveals a clear commitment to protecting the most vulnerable and disadvantaged households.

We will continue to be ambitious in local authority regeneration and remedial works in 2011. More than €120 million will be invested in this area and we hope to start construction on a number of schemes in Limerick in 2011.

Long-term leasing delivered 3,000 units thus far but more should have been delivered. Greater energy will be invested in this area by local authorities in the coming years. We have a great opportunity to build houses to meet the needs of people on housing lists.

Even without recession, the way in which we deliver on social housing needs would have been further reformed. In the context of the recession, financial constraints allied with favourable market conditions have accelerated those reforms but that does not make them less necessary. Without hesitation or reservation, I commend the budget, the 2011 Estimates and the significant Housing provisions contained therein to the House.

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