Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I welcome the opportunity to contribute to the budget debate.

The Government is successfully rebuilding our economy and society. Budget 2014 is a further progressive step along that road with fiscal responsibility, job creation and social reform its hallmarks. Neither element can be taken in isolation. This budget is a coherent package of measures designed to promote growth, regain our economic sovereignty and rebuild the fabric of our society. It will achieve all these goals.

I share the Tánaiste’s view that this should be the last of the difficult budgets. In looking to a more positive future, we must also recognise the significant sacrifice that the citizens have borne in recent years. Everyone has contributed to the necessary restructuring of our national finances and again difficult choices had to be made in this budget. In implementing these decisions, we have worked to ensure those with the most, shoulder most of the burden while the core living standards of the most vulnerable are protected.

Innovations contained in budget 2014 will impact significantly on housing in the corning year. I estimate an additional 4,500 new social homes will come on stream in 2014 with the continued transfer of NAMA, National Asset Management Agency, units, increased completion of mortgage-to-rent arrangements, the delivery of construction projects and units delivered through social leasing initiatives.

Next year will also see radical reform of housing assistance support. Working in conjunction with my colleague, the Minister for Social Protection, Deputy Burton, a new housing assistance payment will be introduced in 2014. Work on the necessary legislation is under way and I expect test phases of the new payment to begin next year in seven local authority areas. The housing assistance payment will play an important role in the Government's job creation agenda. The new system will allow people take up work opportunities and retain a level of housing support. The present rent supplement system does not allow that flexibility and reform is long overdue.

Budget 2014 will herald two new capital housing initiatives. With the support of my colleague, the Minister for Public Expenditure and Reform, Deputy Howlin, an additional €30 million will be invested in a new capital building and refurbishment programme. As the Minister stated yesterday, this initiative, while a modest start, is a significant signal that the Government sees traditional local authority housing construction playing an important role in social housing supply in the coming years. Approximately half the fund will be invested in new build developments while the other half will be used to bring back into social use those local authority houses which have remained vacant, and in some cases derelict, for too long. This investment will provide additional homes, enhance local communities and ensure we utilise the assets we have to provide people with high quality housing.

Up to €10 million will also be invested in a new fund for the most marginal of unfinished estates. Good progress is being maintained in resolving this most visible scar of the boom years with more than 40% of unfinished estates now resolved. The most difficult estates to resolve are those where no developer contribution for public infrastructure is available. In many cases, these estates are effectively frozen where owners and funders will not advance a capital investment to finish out works because facilities such as paths, roads and drainage are not in place. The result for hundreds of families is that they have to live, day in, day out, in a wholly inadequate development with little prospect of resolution. The €10 million fund is designed specifically to break this logjam. Public infrastructure will be provided which has the capacity to unlock external investment on the estate, while also bringing tangible benefits to existing residents. Developments that put forward a community gain in terms of housing units or amenity facilities will be strongly favoured when applying to the fund. Details on both schemes will issue to local authorities shortly.

Budget 2014 is fair, innovative and reforming. Across all Departments, as is evident in the housing area, the Government is successfully adjusting public spending to sustainable levels while implementing an ambitious reform agenda. It is vital that these two approaches go hand in hand. As we emerge from the bailout and regain economic sovereignty, we do not want to get back to where we were. That is not the mandate the Government holds. We have a more challenging, more important mandate. Our goal is to reform policy so the citizens have a sustainable economy and a fair society. Given the sacrifices our people have made it is the least they deserve.

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