Pádraic McCormack (Galway West, Fine Gael)
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Question 6: To ask the Minister for the Environment, Heritage and Local Government the number of affordable houses, as distinct from social houses, that have been completed to date in 2006; and if he will make a statement on the matter. [36885/06]

Noel Ahern (Dublin North West, Fianna Fail)
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In 2005, for the 11th successive year, a record output of some 81,000 new homes was achieved and this figure is set to further increase this year. Data on house loans issued in 2005 indicate that 45% of new loans were taken by first-time buyers. A significant number of mortgages for those new homes were manageable or affordable.

The Government has sought to supplement the market through a range of different responses directed at those who cannot meet their own housing needs. In this regard, affordable housing measures are aimed at facilitating the purchase of homes by individuals at less than market value. During the first six months of this year, more than 1,100 affordable houses have been provided through various affordable housing schemes. These houses are additional to the 7,300 affordable homes which were supplied over the previous three years.

Income limits, maximum loan amounts and subsidy levels have also been substantially increased. The income eligibility limits for shared ownership, affordable housing and local authority house purchase loans now stand at €100,000 for a dual income household and €40,000 for a single income household. My Department is currently examining the various affordable housing schemes in order to simplify and streamline arrangements. Last year, the Government established the affordable homes partnership to co-ordinate and add impetus to the delivery of affordable housing in the greater Dublin area, where affordability pressures are greatest. The partnership has made considerable progress, particularly in terms of advancing land exchange projects. The conclusion of three such exchanges has allowed for the early delivery of some 500 affordable homes. Other measures being undertaken include the development of additional affordable housing on private lands.

Pádraic McCormack (Galway West, Fine Gael)
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I thank the Minister of State for providing me with information I did not seek. I question his claim that 11,000 affordable houses were provided in the first six months of this year.

Noel Ahern (Dublin North West, Fianna Fail)
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The figure I gave was 1,100 houses.

Pádraic McCormack (Galway West, Fine Gael)
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I would also challenge a claim of 1,100 houses because, according to the Department of the Environment, Heritage and Local Government's housing statistics bulletin, a mere 616 of the 43,899 new units completed in the first six months of 2006 comprised social or affordable housing. While I am aware that some of the new units were one-off houses or in developments of fewer than four units, affordable houses formed less than 1.5% of the total number of house completions, rather than 20%. Can the Minister of State indicate how many of the units completed in the first six months of this year were in developments of four or more houses, so that we can establish the number of affordable and social housing being lost due to changes in the Government's policy wrought by the Planning and Development (Amendment) Act 2002? We have already debated this issue in the context of a Private Members' Bill which was opposed by the Minister of State, and it is clear that the policy is not working.

Noel Ahern (Dublin North West, Fianna Fail)
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Deputy McCormack specifically asked about affordable houses, of which some 1,100 have been provided.

Pádraic McCormack (Galway West, Fine Gael)
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Were they provided in the first six months of this year?

Noel Ahern (Dublin North West, Fianna Fail)
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Yes.

Pádraic McCormack (Galway West, Fine Gael)
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They are not reflected in the Department's own statistics.

Noel Ahern (Dublin North West, Fianna Fail)
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As the Deputy is aware, there are four different schemes, namely the shared ownership scheme, the 1999 affordable housing scheme, the Part V scheme and the affordable housing initiative.

Pádraic McCormack (Galway West, Fine Gael)
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That was not my question.

Noel Ahern (Dublin North West, Fianna Fail)
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It is. The Deputy may have meant to ask about Part V, but he asked for the number of affordable houses, which is 1,100.

Pádraic McCormack (Galway West, Fine Gael)
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I want to know about shared ownership, not affordable houses.

Noel Ahern (Dublin North West, Fianna Fail)
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Last year, for the full year there were 2,900. Those figures can be broken down if the Deputy wishes. Unfortunately, one of the ploys used is to consider the four different schemes and only refer to figure of output for one of them. In the first six months for affordable houses under Part V, which is one of our schemes, there were 367 units. I do not have the output for social housing, because the Deputy's question was not about that. If he is telling me it was 616 and that was up to 20%, it would indicate that approximately 3,000 of the 44,000 were eligible for Part V. As we discussed the matter last week and in other places, we know that approximately a quarter of house production is made up of one-off houses in the country. Another significant proportion is taken up by old planning permissions, granted prior to the coming into force of Part V. Many more of them are small developments under four and some are on land that is not zoned in towns and villages where Part V does not apply. Working from the 616 figure, approximately 3,000 of the 44,000 at this stage were eligible for Part V. As the old planning permissions die out in the coming years, obviously the figure will be much higher.

Pádraic McCormack (Galway West, Fine Gael)
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Does the Minister of State not accept that developers are giving money in lieu as they are allowed to do under the amended Act of 2002 or are giving land elsewhere? It takes considerably longer for local authorities to convert that money or land to houses. In addition to getting 20% of a development, the houses are available immediately as the builder will get the development completed as soon as possible to get his houses on the market. The Minister of State must accept that the objective of providing social and affordable housing under part V has failed since the introduction of the 2002 Act. What new policies does the Minister of State intend to implement to deliver more affordable housing in communities where it is needed, rather than telling us about the present policy which is proving to be unsuccessful as builders are simply getting out of their commitments to give 20% of the housing as they are giving money or land instead, which may only turn into housing in the long term?

Noel Ahern (Dublin North West, Fianna Fail)
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As the Deputy said, since 2002, cash represents one method by which a developer can fulfil his legal obligations under Part V. As we discussed last week, up to the end of June €38 million was contributed in that way. I made it clear last week and do so again today that without these cash payments 12% or 14% would be added to the output. It is not a case of cash representing half of the business so to speak.

Pádraic McCormack (Galway West, Fine Gael)
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It is delaying the housing.

Noel Ahern (Dublin North West, Fianna Fail)
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No, it is not. If there was no cash it would add approximately 12% to 14% to the number of units delivered. If it were 616, taking the Deputy's figure for the first six months, it would increase by that amount, which is not radically different.

Pádraic McCormack (Galway West, Fine Gael)
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It is delaying it by three or four years in some cases rather than getting them instantly.

Noel Ahern (Dublin North West, Fianna Fail)
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On other measures, the big initiative will be the affordable homes partnership that we launched a number of months ago. There are calls for lands and I expect announcements very soon. That partnership has been working with private developers to bring forward land that was previously not zoned or lands whose zoning has been amended. There will be announcements covering the greater Dublin area in the coming weeks and months.