Róisín Shortall (Dublin North West, Labour)
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I thank the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Finneran, for attending the House to reply to this matter. However, it is a pity the Minister, Deputy Gormley, is not taking a more active interest in this important issue. I would like him to play some role in respect of it.

I am raising the issue of the Ballymun regeneration scheme because I am extremely concerned with regard to the slowdown that has occurred in respect of this project. The regeneration scheme has been exceptionally successful to date. This project is unique in its scale because never before has an existing town with a population of some 15,000 been replaced, on the same site, with a new town. The Ballymun regeneration scheme has posed major challenges to those charged with managing it and also the residents who have been prepared to endure massive disturbance and disruption for the sake of achieving the greater good of quality homes to replace the dilapidated and unsafe flats which are now well past their sell-by date.

To date, some 1,500 families have been rehoused and homes for a further 300 are currently under construction. My concern is for the remaining 500 families whose replacement homes are in jeopardy or completion of which will be seriously delayed as a result of the Government's failure to provide the necessary funding to maintain the regeneration scheme. Up to last year, funding was always provided to Ballymun Regeneration Limited, BRL, in arrears following payment by the company itself. In 2008, the Department notified BRL that, for the first time, the funding available would be limited. The indication was that €80 million would be provided. Some €75 million of this was receipted by December last, with the remaining €5 million receipted in January.

Due to the rolling nature of the construction programme and contractual commitments already entered into, expenditure exceeded income last year. BRL, therefore, had an opening debit balance of €31 million for 2009. The existing commitment in respect of replacement housing in 2009 is €53 million. It is a matter of the utmost concern that the Department's allocation for this year is only €45 million. When one takes into account the opening debit balance of €31 million and the €53 million already committed, one discovers that an additional €39 million will be required during this year. That is the very least amount that will be required and it will merely allow the regeneration scheme to continue to tick over. Construction on the outstanding 500 homes must also be commenced and we cannot allow any slippage in the context of maintaining the momentum of the scheme.

In February, BRL and Dublin City Council presented to the Department a funding proposal under which the regeneration scheme would be completed by 2014, two years later than promised. The arguments in favour of this proposal are indisputable. The regeneration scheme has been ongoing for ten years and it is critical that the confidence and momentum relating to it be maintained.

Some 500 families continue to live in exceptionally difficult and unsafe circumstances. Putting the remainder of the programme out to tender now would result in substantial savings in the current financial climate. It is estimated that savings of as much as 20% might be made. The massive public investment that has already been made in Ballymun must be protected. There is a real danger that that investment could be undermined through an escalation in antisocial activity because of the severe difficulty in managing and policing a stalled regeneration project. It is virtually impossible to manage large apartment blocks where many of the units lie idle, and those empty units are now subject to fairly serious antisocial activity by elements in the area. It is an extremely difficult situation to manage and we simply cannot run the risk of damage being done to existing works that have been carried out.

Furthermore, the existing business confidence in the area which was so hard to achieve and into which so much effort was put in to building could be lost if there is any further delay. An important point in the current circumstances is that the regeneration can sustain at least 300 construction jobs, which would result in welfare savings and tax of over €6 million per annum.

I am appealing to the Minister. There are six very good reasons the Ballymun regeneration programme must be rebooted and kept going. Already there has been slippage, and we know that two years have been lost because of delays with funding. It is critical that we stick to the kind of schedule and funding timeframe that has been set out for the Minister by Ballymun Regeneration Limited and Dublin City Council where the entire project can be finished by 2014. We cannot afford any more slippage in that area. The risks the Minister runs by doing that are too great, both in terms of the financial investment that has occurred but also, and more important, in terms of the hopes and aspirations of those 500 families whose dreams have been dashed because of the delays that are occurring and who, like all of the other residents in Ballymun, deserve to have decent quality living conditions.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I thank Deputy Shortall for raising this important housing issue. It is nearly 11 years since the master plan for a new Ballymun was published and the regeneration process began. Since then, the Government has demonstrated strong commitment to the Ballymun Regeneration Project with over €580 million in Exchequer funding devoted to it to date.

It is worth reminding ourselves of the situation which previously existed in Ballymun and which regeneration has sought to address. In the 30 years after the Ballymun estate was constructed, no private housing had been built in the area and no private investment had been made in the town. During the 1990s there were hundreds of vacant flats in Ballymun because people simply did not want to live there. Community facilities in Ballymun either did not exist or were of poor quality.

Against this background the transformation of the Ballymun landscape has been remarkable and has improved the quality of life for many thousands of people in the area. Construction of new housing started in 2000 and since then, more than 1,000 families have moved from the flats into their new homes. At the same time, six of the landmark seven towers have been demolished. Close to half of the original 2,800 flats are either already demolished or under contract to be demolished. In addition to replacement local authority housing, more than 1,400 new private, voluntary and cooperative homes are built or in progress at this stage.

This year a provisional allocation of €45 million has been earmarked for the project. In addition, further specific funding will be identified in Dublin City Council's main social housing allocation to fund de-tenanting associated with its various regeneration projects, including Ballymun.

The regeneration of Ballymun is not just about replacement housing. Building identifiable neighbourhoods with relevant community facilities is a central commitment in the master plan. In that regard, local parks and 12 new playgrounds have been developed as well as neighbourhood centres comprising shops, apartments and community meeting rooms.

A new traditional main street has been developed comprising shops, hotels, a civic centre, a sports and leisure centre and private housing. Planning permission has been granted for a new town centre to replace the shopping centre, and we hope that will start soon. IKEA is to open on 27 July with 500 jobs, and the metro is coming to Ballymun.

Community spirit is thriving in Ballymun and the town is picking up awards for everything from Tidy Towns and Sustainable Energy awards to The Irish Times theatre accolades. The Government is very proud of the progress made to date and my Department is actively working with Ballymun Regeneration Limited and the local authorities to ensure that the regeneration project can be sustained, consolidated and completed, taking account of budgetary circumstances, with a particular focus on achieving best value for money.

The result is that Ballymun is now evolving into a vibrant mixed tenure community, moving from a cycle of dependency to a sustainable community in its own right, but there are major challenges ahead and it is for that reason that I have asked the Ballymun Regeneration Agency, in conjunction with Dublin City and Fingal County Councils, to review the strategic direction of the programme to make sure we are meeting the objectives set having regard to the more difficult economic environment in which we now find ourselves.

Róisín Shortall (Dublin North West, Labour)
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What does that mean?

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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It is acknowledged that it will take longer to complete the regeneration, not least because there has been a slowdown in the private sector investment needed to secure the sustainability of the project.

Ballymun is an area that is being transformed through this regeneration but we must now ensure that the regeneration programme is geared to meet the new challenges we face so that all that has been gained in Ballymun to date is safeguarded for the future. At the same time, I am mindful of the conditions in which some tenants from the older accommodation have to live. As I mentioned earlier, provision is being made within the Dublin City Council housing allocation to support the transfer of regeneration tenants generally to better quality accommodation and I look forward to the council progressing this issue, in co-operation with Ballymun Regeneration Limited.

Róisín Shortall (Dublin North West, Labour)
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Very disappointing.