Alan Kelly (Tipperary North, Labour) | Oireachtas source

This is a milestone budget. It shows that we are slowly becoming a normal economy again, where we are neither throwing money around for the sake of short-term popularity nor squeezing savings out of already pressured public services. It is as progressive as it is prudent and realistic. Lower and middle income earners are gaining proportionately more than the better off. Many sections of the Opposition might wish this was not the case, but it is. People will see this in their pay packets next January, from which point it will become real for them. It is a small step, but a significant one. It will represent the start of recovery to many people and the start of an era of sustainable growth, where Government gives to the people it serves.

This was made possible only by the sacrifices of the Irish people. Unpopular decisions were taken, but they were taken in order to get us to this point. This is a country with record IDA investment and the highest growth projections in Europe. It is taking people out of unemployment and it has one of the most progressive tax systems in the world. Again, the misery merchants in the Opposition wish this was not the case. They have not yet adjusted to an era of economic recovery, but their shouts will now ring hollow.

I have always maintained that spending money one does not have is not an economic policy; it is deceitful and dishonest. To focus on one specific area by way of example, let us consider some specifics from Sinn Féin, whose members are not even present in the House. Its pre-budget submission on housing demonstrates this dishonesty. Sinn Féin did not propose any increase in spending for homelessness services next year. This Government will increase it by 20%. Sinn Féin did not propose any increase in local authority leasing, the quickest way to put a roof over a person's head. It did not have any proposals for the refurbishment of vacant social housing units and there was no specific reference to funding to improve housing conditions for people with disabilities. In fact, there was no proposal to increase any current housing spending by the Department of the Environment, Community and Local Government, yet the Government decided to increase current spending by €52 million.

Sinn Féin's only proposal was to use the strategic investment fund to build 6,000 houses. There was no detail and no timelines. We have surpassed that. We will build 7,500 units next year. While that proposal by Sinn Féin has some merit, it would be unlikely to have any impact on the social housing waiting lists in 2015. In fact, its proposal, if implemented, would have zero impact on housing waiting lists in 2015. With that type of thinking, I can conclude only one thing, that Sinn Féin is only pretending to care for the sake of political posturing and is not intent on delivering anything.

We have gone very quickly from having the problems of a broken economy, with unfinished estates, to having the problems of a growing economy, including rising house prices. This is creating all kinds of pressures, especially in the private rented sector. There is no single or easy solution. The solution lies in having a comprehensive, detailed and action orientated plan and implementing it vigorously. That is what I intend to do.

In his speech yesterday, my colleague, the Minister for Public Enterprise and Reform, Deputy Brendan Howlin, underpinned the Government's clear commitment to supporting the work of my Department in delivering on its wide and diverse business agenda in 2015 and beyond, with a particular focus on delivering a vibrant, sustainable public housing sector. In addition to delivering on the housing agenda, the provision made in budget 2015 will enable my Department to deliver far reaching policies and programmes that will promote and support strong and vibrant communities, enhance the role of local government, protect and enhance our environment and deliver reform of the electoral system.

My Department's Vote for 2015 is €1.157 billion - €578 million capital and €579 million current. This compares to a total of €817 million in 2014 , an increase of €340 million or nearly 42%. More than €230 million of the increase will go to housing programmes. The Government's commitment to housing is substantial by any objective assessment.

A sum of €2.2 billion is to be invested in social housing in the next three years, of which €1.5 billion is to be directly invested by the Exchequer. A further €300 million will be invested as a result of public private partnerships and off-balance sheet funding of €400 million will enable approved housing bodies in the voluntary sector to increase the supply of social housing. More details of this will emerge when the Government announces a comprehensive social housing strategy in the next two weeks for the period from 2015 until 2020.

That some more than €800 million or more than 70% of Department's Vote of €1.157 billion for 2015 is to be devoted to housing is testimony to the Government's commitment to meeting housing needs. The Department will work with key stakeholders, including the Housing and Sustainable Communities Agency, local authorities and approved housing bodies to secure maximum benefit from these substantial resources.

I very much welcome that investment in new housing infrastructure has been given priority in budget 2015. As a consequence, my Department's expenditure on housing will increase by more than 40% on 2014, rising from €576 million to more than €800 million. In excess of 7,500 new homes will be provided under a range of housing initiatives in 2015. In addition to providing much needed homes, the multiplier effect associated with this investment package will consolidate growth rates being experienced as the economy moves into robust recovery and sustain jobs in the construction sector.

Every Government since the foundation of the State has been asked to increase the provision of social housing. There is no single solution to the housing problem and the task will not be completed overnight. We are, however, facing increased housing need and it continues to be my Department's objective to maximise the delivery of social housing using all of the resources available. Almost 70% of my Department's 2015 budget will go directly to support a range of housing programmes.

The housing capital spend will increase from €273 million this year to €453 million in 2015. This increase of €180 million in capital spending alone will result in the acceleration of local authority direct build and acquisition of properties. The expanded housing construction and acquisition programme will meet the twin objectives of tackling rising housing need and supporting jobs in the construction sector. The number of housing units delivered through this mechanism will more than quadruple in 2015, increasing from 200 to 946 units. There will also be significant increases in the direct delivery of housing units by both local authorities and approved housing bodies combined, rising from a total of 475 in 2014 to almost 1,400 in 2015.

From a cost-effectiveness point of view, it makes sense to bring viable existing properties back into use as quickly as possible. The stimulus package included with budget 2014 provided €15 million for a targeted measure to refurbish vacant houses and flats. In response to a call for proposals, authorities identified more than 1,900 properties for refurbishment at a cost of €36 million. Using the available €15 million for 2014, it was possible to approve works on some 952 properties across all 34 local authorities. Properties were selected on the basis of local housing need and the cost-effectiveness of the proposals. The additional capital programme in this year's budget will built on this success and allow 1,000 extra vacant housing units to be brought back into use.

We also continue to address the legacy problems of unfinished estates and substandard homes and buildings through the Priory Hall resolution framework, the pyrite resolution board and significant investment in unfinished estates.

Current spending on housing will increase by €52 million to €345 million, funding that will be used to finance increased local authority housing services, including through the rental accommodation scheme, RAS, and the new housing assistance payment, HAP. The core objectives of the RAS were to reform the approach towards providing accommodation in the private rented sector for long-term dependants under the supplementary welfare allowance scheme, while contributing to the attainment of better value for money for the State in the provision of long-term accommodation options. Until the end of May 2014, almost 49,500 households had been transferred by local authorities from rent supplement and housed directly under the RAS and other social housing options. The rental accommodation scheme continues to be a successful programme. It has achieved considerable output levels to date and delivered quality housing to a large number of households. The figures speak for themselves.

In total, 7,536 additional housing units will be delivered from a range of measures which, combined with a target of 8,000 for transfers from rent supplement to the housing assistance payment, will deliver a total of 16,000 housing units in 2015. Moreover, 400 new housing units will be provided for people with specific needs in 2015 and up to 150 new homes in the community will be provided for people with disabilities leaving institutional care. Some 7,600 housing adaptation grants will assist older people and people with disabilities to continue living in their own homes.

As the economy starts to recover, the people who suffered most in the downturn must achieve some respite. I am conscious of the need for immediate action to address the scourge of homelessness. My Department recoups up to 90% of housing authorities' expenditure on the provision of accommodation and related services for homeless persons. A significant proportion of funding utilised by housing authorities is in respect of services that are provided by non-governmental organisations. I pay tribute to the vital work done by the housing NGOs. I am increasing the money provided for Homelessness by 20%. By allocating a further €10.5 million for this purpose, I will bring the total provision to €55.5 million in 2015.

The availability and supply of secure, affordable and adequate housing is essential in ensuring sustainable tenancies and ending long-term homelessness. In addition to the measures I have outlined, I intend to direct local authorities to revise their allocation policies for local authority housing to ensure they will be geared significantly more towards people who are homeless. This is a positive development.

Significant resources are also being made available through the Department's Vote to support the development of strong and vibrant local communities, environmental protection and local government services. Some €133 million will be invested in community programmes in 2015, including €46 million for the social inclusion and community activation programme, SICAP, and €45 million for Leader. Funding will continue to be made available to support a range of initiatives in the community and voluntary sector, including support to strengthen and foster volunteerism and philanthropy, as well as funding for seniors alert, which supports the provision of monitored alarms, to enable older persons of limited means to continue to live securely in their homes with confidence. Overall, funding for community and voluntary supports will increase by €1.5 million to €12.3 million in 2015.

I remain committed to supporting the local and community development programme, LCDP, and its successor, SICAP. It is critically important that I do so. Some 10,000 people who are distanced from the labour market will receive direct one-to-one labour market training and supports through the LCDP, which will draw to a close in the first quarter of 2015. Its successor, SICAP, which will take account of the newly aligned local authority and local development structures, will support in excess of 30,000 people in 2015. As the economy emerges from recession, SICAP will create opportunities and provide supports to ease the transition into meaningful employment for the harder to reach in the most disadvantaged areas. A sum of €46 million will be invested in 2015 to increase access to formal and informal educational activities and resources and increase people's work readiness and employment prospects.

The Leader elements of the rural development programme, which will receive €45 million in 2015, will assist projects that improve quality of life and promote growth and diversification of the rural economy. Leader is addressing many of the challenges facing rural communities, including through increasing economic activity and generating employment. It is a key multi-annual programme, which will continue to be supported in 2015 as the present programme draws to a close and is replaced by a new Leader programme.

An additional €10 million is being made available to recoup investment made by local authorities following damage caused by severe storms earlier this year. A sum of €71 million will be paid to the local government fund in respect of Irish Water subvention. Other areas of Department spend in 2015 will include €28 million for water services; €10 million for the North-South PEACE programme; €8.5 million for landfill remediation; and €8 million for fire services capital investment.

My Department will continue to prioritise the delivery of good quality social housing, including mainstream local authority housing construction this year, enhancing the role of the not-for-profit sector in the provision of social homes, and continuing to work with the National Asset Management Agency, the local authorities and approved housing bodies to maximise delivery of units owned by NAMA or its debtors for social housing over the lifetime of the Government. What is more, we are committed to real actions and plans that will deliver for communities and I intend working vigorously with the Minister of State, Deputy Paudie Coffey, to aggressively tackle this country's various challenges in housing.

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