Alan Kelly (Tipperary North, Labour) | Oireachtas source

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:"acknowledges that the economic downturn and contraction in construction activity since 2008 have created significant difficulties for many communities and individuals across Ireland;

recognises the high priority which the Government has assigned to housing and homelessness issues, particularly in the Housing Policy Statement of 2011, the Homelessness Policy Statement of 2013 and most recently in the Statement of Government Priorities 2014 - 2016 published in July of this year;

notes that:

— current house completions data (5,824 units completed by end July 2014) show that nationally there is a 32 per cent increase in output over the first seven months when compared to equivalent figures in 2013 (4,405 units completed) and that new Dublin house completions over the first seven months of the year are up 150 per cent on equivalent figures for 2013, increasing from 678 units to 1,693 units;

— by using the outturn to date, it is currently estimated that between 10,000 and 11,000 units will be completed in 2014, representing an annual increase of approximately 25 per cent;

— the 89,872 households on social housing waiting lists, as recorded by the statutory Summary of Social Housing Assessments as at May 2013, represents a reduction of 9 per cent on the 2011 assessment total of 98,318; and

— within the funding constraints of recent years, the Government has responded in a variety of ways to meet emerging housing needs, including through the expansion of more flexible revenue-based funding and delivery mechanisms including leasing and the Rental Accommodation Scheme;

recognises that, with the more limited resources available, the main focus in terms of housing supports provided by Government must be on meeting the most acute needs of those unable to provide for their accommodation from their own resources;

welcomes the total €647 million housing allocation for 2014 which will result in an investment across a range of programmes and will support the delivery of over 6,000 units this year;

welcomes the provision of a €30 million funding stream to bring vacant and boarded up local authority units back into use, which will provide some 1,960 homes for families on housing lists;

recognises the Government’s enactment of the Housing (Miscellaneous Provisions) Act 2014, which provides a legislative basis for the new Housing Assistance Payment (HAP), which will be of significant benefit to long-term recipients of Rent Supplement;

further notes:

— the Government’s commitment that HAP recipients will have access to other social housing supports offered by local authorities through the transfer system;

— that in February 2014 the Department of the Environment, Community and Local Government broadened the Mortgage-to-Rent Scheme to provide for local authority borrowers which aims to ensure that local authority homeowners in mortgage distress can remain in their home; and

— that the Department continues to work closely and successfully with the National Asset Management Agency, the Housing Agency, local authorities and approved housing bodies in relation to the delivery of social housing;

recognises the voluntary and cooperative organisations’ ongoing work in providing social housing using funding sources under the various Government schemes;

welcomes the Government’s commitment to end long-term homelessness by 2016;

supports the adoption of a housing-led approach to tackling homelessness, which involves access to permanent housing combined with appropriate ongoing support, as a core aspect of the Government’s Homelessness Policy Statement;

welcomes the ring-fencing of Government funding for homeless services in Budgets 2013 and 2014, in support of the discharge by local authorities of their statutory role in the provision of accommodation for homeless persons;

supports the Implementation Plan on the State’s Response to Homelessness which will deliver 2,700 units for homeless households by end 2016;

notes that the official Dublin rough sleeper count identified 127 individuals sleeping rough on a given night last April – a decrease on the figure of 139 recorded for November 2013;

acknowledges that a regional ‘Housing First’ service will commence shortly in the Dublin region which will have a focus on delivering new tenancies for homeless people with a history of rough sleeping and high level needs;

recognises that the private rented sector is an important element of the housing market, with approximately one in five households now renting their home in the private sector;

recognises that resolution of the housing supply situation is a key element in restoring stability to the rental market;

acknowledges that the growing evidence of increasing rents, particularly in Dublin, is a cause for concern but notes that, on average, rents in Dublin are still 12.7 per cent lower than they were at their peak in the fourth quarter of 2007, while rents nationally are almost 19 per cent lower than their peak in 2007;

notes that the study commissioned by the Private Residential Tenancies Board (PRTB) on rent stability in the sector will be presented to the Minister for the Environment, Community and Local Government in the coming days;

recognises that the introduction of any rent stability measures will require careful consideration by Government;

agrees that the overriding objective is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole;

notes that the Government will be introducing legislative provisions for a Deposit Protection Scheme, to be operated by the PRTB, at Seanad Committee Stage of the Residential Tenancies (Amendment) (No. 2) Bill 2012, which will eliminate the practice of landlords illegally withholding deposits and contribute to the ongoing regulation and development of the rental market;

welcomes Dublin City Council’s ongoing inspection programme for rental properties which is proving to be very effective in targeting non-compliant properties, enforcing minimum standards legislation and bringing properties into compliance to the benefit of over 3,000 tenants since March 2012;

acknowledges the complex issues of law involved in preventing discrimination by landlords against recipients of Rent Supplement but welcomes that options, including that of legal remedy, to address the practice of discrimination in such instances are currently being explored by the relevant Departments in consultation with the Attorney General;

acknowledges that there are, approximately, 74,000 rent supplement recipients, for which the Government has provided over €344 million for 2014; and

welcomes the Government’s commitment to:

— address the challenges in the property and construction sectors, including developing an overall strategic approach to housing supply through the implementation of the actions in Construction 2020 – A Strategy for a Renewed Construction Sector;

— ensure that all new housing provided, whether for emergency accommodation or for long-term housing, will meet the requirements laid down in the Building Regulations and best practice as set out in the Quality Housing for Sustainable Communities guidelines to support the delivery of quality homes which will fully meet the needs of occupants;

— develop and publish in the coming weeks a Social Housing Strategy which will set out a series of actions to address the supply of social housing over the next five years; and

— identify and facilitate the most appropriate models to maximise supply, management and maintenance of social housing in the longer term in order to deliver the key social housing objective of providing both for those households who cannot afford to house themselves and those who struggle to afford housing in the private market."

I thank the Deputies for proposing the motion. I kick off by saying I welcome the contributions of the Deputies but I find it quite amazing and unbelievable, and I am sure the Deputies across the House will share this with me, that the supposedly main Opposition party does not have one representative during this debate on such an important topic for everyone. The spokesperson might be busy, but it is absolutely unbelievable that not one representative of Fianna Fáil could be here this evening. I have no doubt its leader and spokesperson will be waxing lyrical about housing, social housing and homelessness in the coming weeks, but I will not be short on pointing out that it could not find somebody to be here this evening to discuss a very important topic.

I welcome the fact that Members have raised the important issues of housing and homelessness, thus affording me the opportunity to demonstrate the Government's strongest commitment to tackling these issues through a very wide range of actions, many already under way and others planned. I fully acknowledge the seriousness of the situation and it requires a comprehensive response with specific and ongoing actions, as will be outlined.

Key to an improvement in the housing situation is of course the broader economic recovery. The Government's economic policies are working and as we move on from the legacy of dealing with the collapse of the economy, and in particular the construction industry, very positive trends continue to emerge. The standardised unemployment rate in August 2014 was 11.2%, the lowest it has been since 2009. Also, preliminary estimates for the second quarter of 2014 indicate that GDP increased by 1.5% in volume terms on a seasonally adjusted basis compared with the first quarter of 2014 while GNP increased by 0.6% over the same period.

These are all positive signs that we are in the midst of an economic recovery, from which people and communities are at last beginning to see real benefits. Increasing house prices in certain locations is a double-edged sword. It is a symptom of an improving economy and growth in employment, and it allows some homeowners to move out of negative equity, which I am sure we all wish. However, it makes access to the housing market more difficult, puts pressure on the cost of living and potentially make us more uncompetitive. It also contributes to rent increases and can also increase the risk of homelessness. It requires short and long-term action and this is what the Government will deliver on, with social housing being at the core of this strategy.

In essence, we are dealing with the legacy of a failed policy of relying on the private sector to deliver our social housing needs. I agree with the Deputies opposite on this point. The developer-led policies of the previous Fianna Fáil regime will become a thing of the past and housing developments of the future will be focussed on people and communities, as opposed to greed. Our plans are about enriching communities as opposed to developers. There are acute pressure points in the housing sector, such as homelessness, which are a direct result of the failed economic policies in the past. There are legacy issues which need to be dealt with. There is no magic wand that wipes them away, but I am fully intent on not repeating the same mistakes of the past and will introduce progressive policies and change.

In a similar vein, I point out that fantasy economics and false promises made outside the Chamber will not deal with the housing crisis in the way Sinn Féin has stated. I am not so sure how many times the strategic investment fund has been mentioned or referenced by Sinn Féin, but it is unsustainable, insincere and not achievable because it has been spent multiple times and again here by Deputy Ellis. I caution against overtly politicising matters such as homelessness, as the problems being experienced in Dublin, which need to be dealt with, are the same as those being experienced in Belfast where Sinn Féin has Executive power. The Northern Ireland homelessness problem has been identified as being one of the worst in the UK. Condemning the problem in Dublin will merely serve to prove that Sinn Féin is bereft of a political soul, prepared to promise money it does not have and we do not have to secure votes. In fairness, this is not the way to do business.

Increasing public and private housing supply is a recognised priority and the Government's Construction 2020 strategy, published on 14 May 2014, a blueprint for a properly functioning and sustainable construction sector. I and the Minister of State, Deputy Coffey, are absolutely determined to deliver it. Through its 75 actions, it provides for a strategic approach to returning the construction sector, in a sustainable fashion, towards the provision of housing based on real and measured demand and addresses the full range of relevant issues, including the planning process, access to mortgage finance and the construction workforce.

Funding for housing in 2014 by the Department is more than €647 million, which exceeds 2013 levels. This represents almost 70% of the Department's total budget.

Earlier this year my Department announced a return to mainstream local authority housing construction and in particular the announcement of a €68 million construction programme over 2014 and 2015 that will enable local authorities to construct more than 450 houses. In May details of capital investment totalling more than €46 million for a range of housing projects, which will provide 416 units of accommodation for people with special needs, were announced. Of the €46 million, some €19 million has been ring-fenced for the delivery of 187 units to be acquired or constructed in local authority areas across the country specifically to accommodate persons and families who are homeless.

Some €10 million is being provided for the acquisition of 66 units by approved housing bodies to address the homeless problem specifically presented in the Dublin city area. The balance of the €46 million, approximately €16.7 million will fund the delivery of 163 units to accommodate persons with a disability and older persons in various locations around the country.

Some €30 million will fund the special measure to bring more than 1,900 vacant and boarded-up units back into social use. I deal with local authorities all the time and I have made it an absolute priority for local authorities to get these units back into place as quickly as possible. These units should never have been left go for the years they have been boarded up. It is scandalous and the local authorities, particularly in this city, need to get these units open and accessible to people straight away. It is crazy that this has gone on year on year over the past decade or so. I find it criminal to see these units boarded up when I have driven around the city of Dublin over the past ten years or so.

A further €10 million will resolve many of the most difficult unfinished housing estates and result in enhanced quality of life for families. Earlier this year, some €38.4 million was allocated to local authorities for the suite of housing adaption grants for older people and people with a disability. These grants will enable people to continue to live independently and remain at home for longer. In the case of local authority-owned properties, funding is allocated each year in respect of a range of measures to improve the standard and overall quality of their social housing stock. I recently announced the allocation of €23 million in capital funding for this purpose. Of this allocation, some €8 million will be provided to local authorities for adaptations and extensions to social housing to meet the needs of tenants with a disability or to areas serious overcrowding. Some €15 million will be invested in upgrading the energy efficiency of local authority homes this year. This is part of a three-year jobs stimulus programme that will see the energy efficiency of more than 25,000 of the most poorly insulated local authority homes improved. I am sure everybody in the House welcomes that.

This year, under the national regeneration programme, some €70 million is being provided to support regeneration programmes in Ballymun, Dublin city, Limerick, Cork, Tralee, Sligo and Dundalk. This ambitious programme of regeneration projects addresses the causes of disadvantage in these communities through a holistic programme of physical, social and economic regeneration. In all, more than 6,000 social housing units will be provided for in 2014 through leasing and existing capital programmes.

This will include 275 new units for people with special housing needs; a further 150 new units to be provided specifically for people with disabilities leaving institutional care through leasing arrangements, etc.; an additional 200 new homes under social housing investment programmes; an additional 1,900 new units from the construction stimulus package for void properties; more than 350 new transfers under the mortgage-to-rent scheme; approximately 850 new units through leasing arrangements; and a further 2,500 new transfers under the RA scheme. Those are just this year's actions. The housing matter is about much more than money however, it is about output and putting roofs over people's heads. The main engine behind actions on this will be the Government's soon to be published social housing strategy that is being formulated and nearly concluded.

The Government is committed to addressing the range of challenges it faces in the area of social housing. I am absolutely determined to do that. Construction 2020 provides for the development of a social housing strategy. The strategy will propose a range of approaches and many reforms that are innovative and challenging, and will provide a basis for an improved and sustainable approach to the provision of social housing supports in Ireland. It is being developed by my Department with input from key personnel in the Housing Agency and the National Economic and Social Council, following a public consultation process, which has significantly informed the drafting process. My intention is that the strategy will contain clear measurable actions that are to be taken to increase the supply of social housing.

It is clear that present and future solutions must be found to harness new funding streams. That is critical. It is not easy but it has to be done. While the local authorities will continue to have the lead role in addressing social housing need in their capacity as statutory housing authorities, the growing role of the not-for-profit sector, as represented by the approved housing bodies and other potential investors will also be further developed. Through this strategy, the Government intends developing a new vision of public housing provision that provides both for those households that cannot afford to house themselves and those who struggle to afford housing in the private market. I believe that working together we can ensure that people have the homes they and their families need, now and for the generations to come.

Deputy O'Brien made a very important point. The housing requirements of the past as regard the demographic profiles, and the housing requirements of now and the future are very different. There is no longer the same requirement for three-bedroom houses given the percentage of people who are single and need housing, and also single with one, two or three children. It is a completely different profile that we always need to monitor.

The strategy will set out a series of actions to compensate for the short to medium-term shortage of supply and I look forward to working with my colleagues in government in achieving the significant Exchequer investment needed. Given supply issues in some areas, reliance on the private rental sector to meet housing need is not sustainable and the Government accepts that the delivery of significant new build is required.

Increasing the public housing stock will have the additional benefit of alleviating pressure on the private market in terms of rents and purchase prices. The strategy will be finalised over the coming weeks with further consultation as required, taking cognisance in particular of the Estimates process. It is proposed that following approval by Government, the final strategy, including a complete action plan and governance arrangements, will be published thereafter.

I now wish to address the criticisms of the rental accommodation scheme made earlier. The RA scheme, RAS, remains one of the principal mechanisms available to local authorities to provide suitable quality accommodation for those in need of housing. Up to the end of June 2014, close to 49,800 households had been transferred by local authorities from rent supplement and housed directly under RAS and other social housing options. RAS has been, and continues to be, a successful programme which has delivered quality housing to a large number of households. However, there are issues.

If the dwelling that the household is living in becomes unavailable through no fault of their own, local authorities, with the co-operation of the tenants, do and will make every effort to source alternative accommodation as quickly as possible. In seeking replacement accommodation a local authority will attempt to source a suitable alternative within or close to the area in which the tenant is residing. However, as we all know, that may not always be possible. Therefore, in all cases, not just where a tenancy is under threat, there is no bar on RAS households from sourcing alternative accommodation themselves, if they so desire.

Mortgage to rent targets the most acute arrears cases where a situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. There are chronic arrears cases that have been agreed by both the lender and borrower to be unsustainable. Many of these households are desperately seeking solutions, and seeking certainty for themselves. I presume every Member in this House has met such people. In that context under the mortgage-to-rent scheme families remain in their home and pay a rent which is based on their household income. A household with mortgage arrears goes from being a homeowner to becoming a social housing tenant.

To be eligible for the mortgage-to-rent scheme a household must also be eligible for social housing support. Taking on board recent criticism of the length of time it takes for mortgage-to-rent transactions to be completed, my Department directed the Housing Agency to undertake a review of operation of the scheme to devise a more streamlined approach that could be expected to accelerate the movement of cases through the system, which is an absolute priority.

I am confident the changes made on foot of that review will speed up the process and ensure that those availing of this option can have their situation resolved in a timely and satisfactory manner. In a similar vein, I intend to meet senior officials in the banking sector to remove blockages to people accessing the scheme and I will work with some of the debtor-advocate groups that are campaigning for people in severe debt distress. I expect change as a result of all this work, particularly with the aforementioned advocate groups, working with the banking institutions and with the Housing Agency. The Department also introduced in February 2014 on a national basis a mortgage-to-rent scheme for local authority households similar to that in place for private mortgages.

My Department continues to work closely and successfully with the National Asset Management Agency, NAMA, the Housing Agency, local authorities and approved housing bodies in the delivery of social housing. NAMA has worked well with my Department and other key stakeholders as partners in the delivery of social housing.

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