James Reilly (Dublin North, Fine Gael)
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Question 28: To ask the Minister for the Environment, Heritage and Local Government if he will request that targets for social and affordable housing be included in the new programme for Government; and if he will make a statement on the matter. [25196/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Since the current programme for Government was finalised two years ago, significant process has been made in implementing the measures relating to housing provision. While the process and time line for the review of the programme will be a matter for the leaders of the Government parties, I am confident that the programme, as reviewed, will continue to reflect the importance attaching to the range of priorities in the housing area. This will provide a strong platform for building on the considerable progress already made across a range of housing policies and programmes and associated legislation.

The scale and composition of the social housing programme in the years ahead will be dependent on several factors, including the level of available funding and the evolution of the housing market generally. Subject to these factors, and taking account of the increase in housing needs evident in last year's housing needs assessment, I am determined to ensure the programme is framed in a manner that optimises the use of available Exchequer supports and explores alternative solutions to addressing housing needs. This will provide a robust basis for maximising the capacity to meet housing needs, particularly in respect of the most vulnerable sections of society.

In regard to affordable housing, it is evident that the housing market has changed significantly since 2007, with substantial improvements in the affordability of housing. The question of future commitments in respect of affordable housing must take this into account, together with the extent to which there is a significant quantum of completed affordable housing currently available for sale.

Terence Flanagan (Dublin North East, Fine Gael)
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It is imperative that the Minister of State review the targets for social and affordable housing in light of the current economic situation. More than 56,000 people are currently on the social and affordable housing lists. Under the national development plan, 60,000 new social housing units and 40,000 affordable units were to be provided. Will the Minister of State indicate what the revised targets will be?

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I expect there to be some adjustment to the figure of 56,000, and that figure will be available in the coming weeks. It is important to note that there are various ways in which people's housing needs are met other than via the social housing programme, including the voluntary housing programme, the rental accommodation scheme and the new long-term leasing scheme. The resources available this year will allow for 7,000 social housing units to be acquired by local authorities and the voluntary sector, including the roll-out of the new long-term leasing arrangement. Funding for the rental accommodation scheme has increased from €51 million to €90.5 million in 2009, an increase of 77%. In all, the needs of some 19,500 households were met in 2008 through the full range of social and affordable housing measures. It is expected that a similar level of housing need will be met in 2009. This equates to a 32% increase on the 2006 provision. I expect to meet the targets for 2009.

Ciarán Lynch (Cork South Central, Labour)
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By the end of the year, there may be in excess of 4,000 affordable housing units lying vacant. I agree that the Housing (Miscellaneous Provisions) Bill 2008, to be debated tomorrow, includes several positive incentives in regard to the purchasing of homes under various social housing streams. However, how does the Minister of State intend to rectify the situation whereby the affordable housing programme is clearly no longer competitive when compared to what is available on the open market? Does he intend to give direction to local authorities that the prices of affordable homes must be reduced? Those prices were agreed with developers two years ago in an entirely different housing market. Unless prices are reduced, these units will remain vacant at the end of the year.

Joanna Tuffy (Dublin Mid West, Labour)
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Recent reports on "Drivetime" have referred to the large volume of housing purchased by local authorities throughout the State in 2007 at hugely inflated prices. Will the Minister of State ensure that local authorities secure value for money in any future purchases of housing stock?

Terence Flanagan (Dublin North East, Fine Gael)
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Will the Minister of State ask local authorities to review their housing strategy and to undertake an audit of the vacant properties within their areas?

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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In regard to vacant properties, we have asked for an updated audit. I recently allocated almost €20 million to local authorities throughout the State to bring housing stock back into use. It is expected that some 1,500 of those vacant houses will be turned around. We are allowing €15,000 per unit, which would be 75% of the cost, with local authorities providing the remainder from their own resources. This comes under the retrofit scheme, under which I have directed funding for this purpose for 2009.

Deputy Tuffy referred to recent "Drivetime" reports. I insisted on taking part in that programme because of the inaccuracies being put forward and the one-sided debate that was taking place. Some of the statistics were also challenged by a representative of Dublin City Council. For example, a figure was given for the purchase of a house but it was not pointed out that this property included an adjacent site. That information was conveniently omitted. In another instance reference was made to the high price paid for a house without any indication that the local authority was using it to accommodate a family with special needs. These circumstances must be taken into consideration.

There is no question that local authorities should vacate the market simply because market prices are now low. Local authorities must continue to provide houses for those who need them. In regard to value for money, there is significant expertise within the local authority system. Those people are in position to value the market and to set prices. It is important to note what has been done in recent years in response to pressures on affordable housing. Affordable housing output increased significantly between 2004 and 2008, reaching 4,500 units last year.

As everyone knows, affordability and the market have matched recently. The Department closely monitors developments as regards unsold affordable housing. We issued further guidelines to local authorities on their affordable housing stock in which we set out a number of options. We also asked them to reduce prices to ensure they are able to offload affordable housing units. The Department has been informed by the local authorities that they are in a position to dispose of approximately 1,000 units on the open market. We have also asked them to consider other options if they are unable to sell these units under the affordable housing scheme. For example, the Housing (Miscellaneous Provisions) Bill 2008 provides for an incremental purchase scheme. Individual local authorities may consider offering potential buyers the option of purchasing under this scheme.

I have also indicated that in certain circumstances, when local authorities are experiencing pressure on the social housing side, I would be willing to consider other options. They must, however, in as far as possible continue to take a sustainable communities approach to social and affordable housing developments.

Ciarán Lynch (Cork South Central, Labour)
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I would like to ask one further question.

Charlie O'Connor (Dublin South West, Fianna Fail)
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The Deputy will have to find another way to elicit the information he seeks.

Ciarán Lynch (Cork South Central, Labour)
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With the Minister of State's indulgence, I will ask one final question. I read the circular issued to the local authorities by the Department and reducing prices was not among the options it set out. May I assume from the Minister of State's statement that a further circular has been issued in the meantime advising local authorities that they may reduce the prices of affordable housing units? If so, will he furnish me with a copy of the document?

Charlie O'Connor (Dublin South West, Fianna Fail)
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I ask the Minister of State to be brief.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Department maintains ongoing contacts with the local authorities which also inform us about the feedback they are receiving. Some local authorities have taken a focused approach to sales, particularly in the Dublin region, and consult the Department regularly. We continue to monitor developments in this regard. The Deputy will be aware that I recently introduced an implementation plan for the homeless strategy. Alternative options are available to the local authorities.