Alan Kelly (Tipperary, Labour) | Oireachtas source

I congratulate the Ceann Comhairle on his elevation.

I thank all Deputies who are present. Some of them have been here for a long period. A total of 11 Members remain, which reflects their priorities and those of others in the context of this debate. I congratulate all those who made contributions, most of which were constructive, and, in particular, those who made their maiden speeches.

Increasing housing supply, both public and private, is a huge challenge. A whole-of-government approach to build at scale brings with it key questions in respect of viability and construction costs, the potential for households to meet asking prices and secure debt and the ability of builders to secure the necessary equity and finance. In terms of meeting the 25,000-units-per-year housing target, we are coming from a low base and progress is slow. However, output increased from 8,000 house completions in 2013 to 11,000 in 2014 and 12,500 in 2015. There is obviously much greater potential with increased numbers of planning permissions approved and more than 17,400 hectares of land available for residential development.

I introduced a range of measures, including: reforming Part V to balance viability and social delivery; retrospectively applying reduced development contributions; implementing a targeted development contribution rebate scheme in Dublin and Cork; introducing a vacant site levy - to which I will return; streamlining the process for strategic development zones, SDZs; and providing for development contribution rebates for residential developments. A view was expressed during the debate to the effect that the planning system needs to be changed to facilitate housing development. There is, however, planning permission for more than 20,000 units in Dublin right now, where planning is not an issue. If we are to be honest and open about this matter, we all need to reflect on that fact. Why are those planning permissions not being used?

The Social Housing Strategy 2020, which was published in November 2014, has returned the State to a central role in the provision of social housing but this has taken time. Earlier this year, I published the first annual social housing output statement, which was independently produced by the Housing Agency, and I ask every Member who has contributed to the debate to read that document. I do not say this for any political purpose but the statement outlines the facts about where we stand. I have also published documents on the number of keys we have provided to people to date this year and in 2015. In addition, the spending allocations for every local authority up to 2017 are on the record. For example, Galway City Council has been given €28 million while Louth County Council has been allocated €57 million. Each local authority has been given a substantial amount.

In 2015, more than 13,000 new social housing units were delivered under the programme, an 86% increase on 2014, with 17,000 to be delivered in 2016. In excess of 450 housing staff were sanctioned for recruitment by local authorities, while 2,700 vacant social housing units were brought back into use. Vacancy rates fell to 1% in Dublin city and funding was approved and sites selected for the construction of 5,000 new social housing units. There was a 10% increase in exits from homelessness year on year and a 46% decrease in the number of rough sleepers on the streets of Dublin following the work of the Homeless Summit. To better protect renters, the Residential Tenancies (Amendment) Act 2015 provides for an increased rent review period from one to two years, increased notice periods for rent reviews and greater protections for both tenants and landlords. This will lead to great stability.

As I said in my opening remarks, homelessness presents great challenges. The root cause of the increased numbers of families and individuals in homelessness is supply. While we are working on increasing supply, the measures to deal with the immediate effects are identified in the implementation plan on the State's response to homelessness. More than 2,000 families have been brought through homelessness and out the other side. Let us not forget that because good work is being done by many people working in these services. The Alice Leahy Trust and others have raised the issue of relationship breakdown, which is becoming an increasing factor in homelessness. This is not a political issue. The percentage of people getting into difficulty because the level of relationship breakdown is increasing all the time and we all need to reflect on that.

I have taken a number of successful actions including reforms to the private rental sector to provide rent certainty for tenants. Under the tenancy sustainment initiative, the rent supplement normally allowable to be granted to approximately 7,000 clients has been increased. I issued a direction in January 2015, which requires key local authorities to allocate at least 50% of tenancies to homeless and other vulnerable households. The most critical action I initiated was the rapid delivery of more than 500 housing units in Dublin. Anyone who is interested in this issue should visit those units before our next debate, regardless of who is in government.

I would like to respond to some of the comments made by Members. A new national agency to supply housing was proposed. While the idea may have merit, it could take years to develop and those years would be lost to the delivery of housing. Furthermore, the State has the Housing Agency, the Housing Finance Agency, NAMA, the Department and 31 separate local authorities. There has been a massive reorganisation of the housing section within the Department during the past year. I would, therefore, question the proposal on that basis.

Similarly, Sinn Féin's policy proposals have merit in certain instances but I acknowledge the honesty of the party's housing document which they published during the election campaign. On page 15 it states, "The delivery of our plan is slower [...] reflecting [...] the need for planning and design [...] and[...] the restriction of funding [in the first couple of years]". This acknowledges that it takes time to build houses. As has been pointed out in the House repeatedly, homelessness is a serious issue in the North. Unfortunately, there was bad news there again in respect of the first three months of this year.

Many political parties have put forward the idea of appointing a housing Minister. I support the idea in principle. However, such a Minister should have policy oversight over NAMA and influence over taxation and social protection measures. If that did not happen, I would not support such a proposal because I know what it is like to be in that position where one does not control all the levers.

Deputies Cowen and Danny Healy-Rae made an assertion about local authority structures in respect of the drawdown of funding. I have amended those structures and removed much of the red tape such that local authorities now have discretion and also devolved funding in respect of a certain scale of development. I hope Members will welcome that but there must be accountability for the expenditure of public money. I am sure the former Chairman of the Committee of Public Accounts will agree. We cannot accept everything just at the stroke of a pen.

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