Richard Bruton (Dublin North Central, Fine Gael)
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Question 20: To ask the Minister for the Environment, Heritage and Local Government if he has assessed the extent of vacant housing property in the Irish market; and its implications for public policy. [2120/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I am aware of information regarding vacant dwellings published by the Central Statistics Office as part of the 2006 census results, which was derived from analysis of cases where census forms were not received from dwellings by enumerators. The total number of dwellings reported vacant by the CSO on this basis on census night, 23 April 2006, was 266,000. This represented approximately 15% of the overall housing stock, slightly lower than the EU average according to data published by the International Monetary Fund and well below the reported vacancy rate in some individual member states. An estimated 50,000 of the dwellings reported vacant in the 2006 census were reported by CSO to be holiday homes. The remaining 216,000 represent approximately 12% of the total housing stock. Dwellings can be vacant at any given time for a variety of reasons and a significant level of vacancy can be expected in a dynamic society experiencing significant mobility and demographic change.

An important element of the Government's housing policy is to promote the availability of an adequate supply of housing to meet demand and to provide support to those who cannot meet their accommodation needs without assistance, as outlined in the Government's housing policy statement, Delivering Homes, Sustaining Communities. My Department will continue to keep developments in the housing market, including trends in housing supply, under review in consultation with other relevant agencies.

Richard Bruton (Dublin North Central, Fine Gael)
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The Minister of State's reply is complacent given the evident background. Excluding holiday homes, the CSO figures show 46,000 houses vacant in Dublin city, 25,000 in Cork city, 9,000 in Limerick city and 16,000 in Galway city. The Minister of State would know better than anyone that the Government's social and affordable housing programme has collapsed. According to Government data, the programme has delivered less than half of the amount set out in the national development plan.

Does the Minister of State see a serious contradiction in the rental accommodation scheme, the Government's latest initiative, in Dublin city being massively oversubscribed when 46,000 units are vacant? We cannot offer local authority tenancies to a housing list that is running into the thousands. Some 9,000 people are on the affordable housing list. For the 3,000 whose incomes justify their applications, only 300 houses are coming on stream. Is this not a serious mismatch in public policy, namely, tolerating a housing crisis despite so many vacant properties? Surely, the Department has the capacity to link them.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I wish to address the vacant houses figure, which the CSO puts at 50,000. There is an acceptance that tax issues relate to many holiday homes and that there is a significant further number of holiday homes.

Richard Bruton (Dublin North Central, Fine Gael)
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Not in Dublin, Cork, Galway or Limerick.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy will understand the dual abode situation obtaining in Dublin. A significant number of people own second homes, particularly in Dublin, where they conduct business.

Richard Bruton (Dublin North Central, Fine Gael)
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They are accounted for separately by the CSO.

Batt O'Keeffe (Cork North West, Fianna Fail)
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They have bases of work in Dublin and homes elsewhere. Given market trends, there is an overhang of approximately 30,000 vacant units in the country, of which 5,500 are in the Dublin area. It is important to remember that certain developers have generated significant buyer interest by reducing prices. The House will recall a 28% increase in house prices in the 18-month period between 2005 and 2006. The current situation shows that, when realistic prices are offered, people are willing to buy and weakened sales have improved dramatically as a result.

Richard Bruton (Dublin North Central, Fine Gael)
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I was not asking about the overhang in the housing market, which is another's day work that developers are well able to look after. Thousands of people on housing lists in Dublin are awaiting the rental accommodation scheme, the social and affordable scheme and so on despite the existence of the 46,000 houses in question owned by developers, individuals or whoever. Surely, there is an opportunity to consider creatively how to match them up. People in Dublin city cannot avail of the rental accommodation scheme, which was an interesting initiative.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The question put by the Deputy concerned the overhang of houses, but he is discussing a separate issue.

Richard Bruton (Dublin North Central, Fine Gael)
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On a point of order, I will read my question. It states: "if he has assessed the extent of vacant housing property in the Irish market; and its implications for public policy." I did not mention overhanging.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Deputy is discussing RAS. As part of our development plan in the 2008 to 2010 period, we will transfer an additional 1,000 new units from the private sector. There is ample evidence that many developers are making private accommodation available to RAS if there is an overhang in the market. We will continue with our policy. This year, we will spend €2.5 billion in the affordable and social housing sector.

Richard Bruton (Dublin North Central, Fine Gael)
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That is less than half the target set out in the national development plan.

Batt O'Keeffe (Cork North West, Fianna Fail)
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We will spend €18 billion in the period of the national development plan, which is unprecedented.

Richard Bruton (Dublin North Central, Fine Gael)
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Has the Minister of State read the targets?

Batt O'Keeffe (Cork North West, Fianna Fail)
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Of course.

Richard Bruton (Dublin North Central, Fine Gael)
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The rate should be double that now being sought.

Batt O'Keeffe (Cork North West, Fianna Fail)
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We achieved 2007's social housing target.

Richard Bruton (Dublin North Central, Fine Gael)
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The Government has not.

Batt O'Keeffe (Cork North West, Fianna Fail)
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We have.