Dáil debates

Wednesday, 14 October 2015

Financial Resolutions 2016 - Financial Resolution No. 5: General (Resumed)

 

5:50 pm

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael) | Oireachtas source

Everybody on this side of the House and I accept that the issue of housing is a significant challenge because it is a dysfunctional sector that has experienced a huge bust. However, we are determined to give the issue priority. The Minister for the Environment, Community and Local Government, Deputy Alan Kelly, and I already announced a €4 billion social housing strategy earlier this year.

Let me provide some of the key figures for the housing spend in the budget. We have increased the budget by 18%, from €686 million to €811 million. We are providing an additional €56 million for capital programmes and an increase of €69 million in current spending, a total increase of €125 million. In addition, €112 million will be provided directly by local authorities. Some 7,100 housing units will be delivered by 2016 through current and capital spending, including the refurbishment of 1,600 vacant units. I wish to make it clear that funding is now being provided for the projects submitted by every local authority to the Department. The funding is available and the challenge now is for local authorities to deliver. I call on Deputies like Deputy Colm Keaveney and others to ensure local authorities deliver on the projects they have submitted.

Homelessness is a challenge that must be addressed. An additional €17 million has been included in the budget, giving a total of €70 million, to deal with the homelessness issue. The Dublin homeless HAP initiative issue is being addressed and interventions are being made to raise the threshold. This will assist directly those in emergency accommodation. In order to bridge the supply gap until the sector normalises, we are engaging in a procurement process to deliver 500 modular housing units so as to take people off the streets and out of emergency accommodation. We will do this until the housing units are built because it takes time for that to happen.

An issue for which I take direct responsibility is that of pyrite, another legacy of the substandard construction sector inherited by the Government in 2011. I am glad to report that an additional €9 million for pyrite remediation is being provided, bringing the total to €19 million. This additional funding will afford us the opportunity to ramp up the remediation projects that are under way or in the pipeline. We will, at last, be able to eradicate the nightmare for those who live in pyrite affected homes.

The budget also provides for an increase for Traveller accommodation. A provision of €5.5 million in 2016 will support the progression of a range of Traveller specific accommodation schemes.

A provision of €85 million for regeneration and remedial works demonstrates the Government's continued commitment to target the country's most disadvantaged communities.

A provision of €17 million will allow for the continued upgrading of social housing stock under the energy efficiency and retrofitting scheme, providing for warmer and more energy efficient homes for thousands of families. This builds on the progress made in 2014 and 2015. A further 1,500 vacant units will be refurbished and brought back into productive use.

With regard to private housing grants, funding of €45 million will provide for some 8,500 grants in 2016 which will assist adaptation works to enable older people and people with disabilities to remain living independently in their own homes for longer. This contradicts directly the contribution made by Deputy Colm Keaveney.

The allocation of €17 million for the mortgage to rent scheme will allow for the expansion of the scheme and assist in meeting the Government's commitments on mortgage arrears.

The provision of €76 million for the capital acquisition scheme will ensure a continued focus on meeting the housing needs of vulnerable groups, with some 450 units to be provided for people with specific needs in 2016. Under the capital scheme for local authority housing, total funding of €180 million for the provision of local authority housing will deliver more than 1,000 new units through a construction and acquisition programme.

Under current programmes, leasing will receive increased funding of €20 million which will allow local authorities to bring approximately 3,000 leased units into operation in 2016. Under the rental accommodation scheme, funding of €135 million will allow for 1,000 new RAS transfers in 2015. The funding for the housing assistance payment scheme is being increased by €24.5 million, to a total of €47.7 million, in 2016, in line with the expansion of the scheme. This will assist an additional 10,000 families to secure suitable accommodation. The 2016 allocation for the capital loan and subsidy scheme will be used to make loan repayments in respect of projects already delivered or under way.

I have already outlined the allocation of an additional €17 million to address the issue of homelessness. This will help to ensure the increased demand for homeless services is addressed. Some €135 million is being provided under the community and rural development programme under the responsibility of my colleague, Deputy Ann Phelan, the social inclusion and community activation programme, SICAP.

All in all, I rebut the contention of those who say the Government is doing nothing about housing. Substantial funding in the Department's Vote is allocated for housing provision. The challenge remains, however, and until the private supply increases and until we can address the demand, we need to focus on the gaps and bring local authority projects on side. In the meantime, the modular housing units will go some way towards addressing the issue.

It is welcome that entrepreneurship and the incentive to create jobs is being supported in the budget. Agriculture, too, is being supported and the transition model for farms will bring new rural economic development. Many other initiatives such as those on child care are positive. The budget is positive and will assist the productive sector, working people who have carried the can in the past few years. It is welcome that they are now being rewarded, albeit in a small way. The budget builds the pathway to further recovery and sustainable growth. I commend it to the House.

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