Dáil debates

Thursday, 27 November 2008

Other Questions

Social and Affordable Housing.

4:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 10: To ask the Minister for the Environment, Heritage and Local Government the action he will take to give true meaning to the phrase, affordable housing, with particular reference to the needs of the thousands of families unable to house themselves from their own resources and who are on long local authority waiting lists or living in rented accommodation at a cost equal to that of a high mortgage; and if he will make a statement on the matter. [43082/08]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The overall objective of Government housing policy, as set out in the Delivering Homes, Sustaining Communities policy statement published in February 2007, is to enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and, as far as possible, at the tenure of its choice. When viewed in this context, the issue of affordability of housing is, therefore, dependent on the circumstances of each individual household. The policy statement recognises this clearly in its aim of putting in place a graduated range of supports for those households requiring assistance in meeting their housing needs.

We have made considerable progress in recent years in meeting housing needs through the broad range of social and affordable housing programmes. In 2007 alone, more than 13,000 social and affordable housing units were delivered and, overall, the needs of almost 18,300 households were met across the housing spectrum. That represents a significant increase of 24% on the level of need met in 2006 and a significant step towards assisting an average of 20,000 households per annum over the seven years of the National Development Plan, 2007-2013, the NDP.

All the indications available to us at this stage suggest 2008 will be another year of significant delivery under the main housing programmes. Looking to the future, the results of the 2008 housing needs assessment to be finalised shortly will show a significant increase in overall net housing need, against a background of a significantly more constrained fiscal environment. While this presents a challenging scenario, the €1.66 billion in funding provided for housing in the 2009 Estimates will allow us to maintain strong momentum towards meeting our commitments in the Towards 2016 social partnership agreement and our longer-term goals under the NDP. In particular, progress will be underpinned by the continued roll-out of the rental accommodation scheme and new initiatives including the sourcing of accommodation for social housing through long-term lease arrangements and the introduction of an incremental purchase scheme through which lower income households can access home ownership.

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
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The Government has failed in the area of affordable housing. A total of 17,000 affordable homes were provided for in the programme for Government and the NDP between 2007 and 2009. In 2007, only 3,500 units were delivered while 976 houses were delivered in the first months of 2008. Is there a problem with the affordable housing scheme because houses are being offered at the same price or higher than houses on the open market? One in every five applicants is refusing to take an offer under the scheme because it is not in their interest to do so. Will the Minister of State confirm the reason the scheme is being replaced with the Government equity scheme is that it failed? We have concerns about the Government taking between 25% and 30% equity in homes, which makes the owners vulnerable. Also, there are more than 40,000 on social housing lists and it is taking between eight and ten years to house these people. Will the Minister of State confirm he has failed in regard to housing these people?

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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To date, 9,300 social and affordable homes have been delivered under Part V, with activity increasing in this area. While the charge has been made about these houses not being available in the future, and while I understand this to be the case, 9,300 have been delivered. For 2007, the number of affordable houses, leaving out social houses, was 3,539, which is a significant number. I understand this did not meet the target of 5,000 but we are in a position to state there will be an increase in that number in 2008. While we do not have the full figures, we believe an increase is already showing in the number of houses available. We will have those figures later in the year.

With regard to not meeting our targets, I believe we have met those targets. We said we would deliver——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I will squeeze in one brief supplementary question from Deputy Bannon.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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Will the Minister of State explain why the most vulnerable have been hit with the reduction of funding to local authorities for affordable housing?

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I did not hear the question.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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I ask for a second time whether the Minister of State can explain why the most vulnerable in society have been hit with the reduction of funding to local authorities for affordable housing. If one talks to any local authority throughout the country, that is the message coming forward.

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The figure available on the social housing programme for 2009 is €1.5 billion. While it is 1.7% down on 2008, it amounts to €4.2 million per day. In the circumstances in which we find ourselves, with decreased costs in construction I expect our local authorities will deliver more houses with the money available than they did in 2008.