Willie Penrose (Longford-Westmeath, Labour)

I would love to do that because local authorities should be the prime drivers of social housing policy and I come from that background but, in the context of the straitened financial circumstances in which we find ourselves, the capital budget for social housing has reduced by 66% since 2008 down from €1.535 billion to €500 million and the bulk of that reduction has affected the local authority housing programme, the allocation for which has reduced from €1 billion to €140 million this year. The financial parameters within which we will operate over the coming years rule out a return to large capital funded construction programmes by local authorities and, therefore, we must examine alternatives such as the build to lease or rental accommodation schemes, transfers from NAMA and so on.

Delivery of social housing will be primarily facilitated through more flexible funding models. The social housing leasing initiative will be discussed with NAMA. I met NAMA officials and I informed them that I want to generate a social dividend, if possible. This could be a circular bird because the agency is operating on behalf of the State, as is the Department. If we can implement the initiative in conjunction with NAMA, rent could be charged at 80% of the market rate on long-term leases, which would generate a return for the State on a long-term basis, with applicants then having the option to purchase or the State having the option to take equity in the property at the end of the lease.

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