Dáil debates

Thursday, 25 November 2010

Priority Questions

Unfinished Housing Developments

4:00 pm

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

Question 5: To ask the Minister for the Environment; Heritage and Local Government the actions he will take to address the problem of ghost estates; and if he will make a statement on the matter. [44486/10]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

The national housing development survey database which was published on 22 October establishes an authoritative baseline analysis at a national level of unfinished housing developments to assist in fully understanding the scale and extent of the issues involved. It establishes a sound basis for assisting local authorities in identifying those developments that require priority interventions by the key stakeholders concerned such as developers, financial institutions and local authorities.

The high level expert group on unfinished housing developments, established following the publication of the survey, is actively developing practical and policy solutions to effectively address unfinished housing developments, including preparation of a guidance manual and code of practice. I expect that the guidance manual which will be issued for public consultation shortly in draft form will, inter alia, identify the type of developments and issues that need to be prioritised for action in the short term; the final manual and code of practice will be published early next year. The group is also tasked with identifying new measures that should be considered, including any matters for future legislative reform, to ensure the satisfactory resolution of issues associated with unfinished estates.

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

I thank the Minister for his response, but it gives very little hope to the thousands of homeowners living in unbearable conditions in many ghost developments which give rise to major health and safety issues. Clearly, the Minister's Department was not up to speed in keeping tabs on what was happening throughout the country because it underestimated tenfold the number of ghost estates. What he must do now is give a sense of hope to homeowners and ensure they will not have to continue to live on building sites. The Minister has kicked to touch a final decision as to what he will do about these housing estates. I ask him to respond with some solutions as to how he will deal with ghost estates throughout the country.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

I do not understand the Deputy's point. Is he saying that we underestimated or overestimated-----

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

He underestimated them tenfold.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

That is not the case because the survey is very accurate.

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

No, before that.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

In excess of-----

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

The Minister had do a survey to find out how many estates there were.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

That is normally the case.

Photo of Séamus KirkSéamus Kirk (Louth, Ceann Comhairle)
Link to this: Individually | In context

Deputy Flanagan, allow the Minister to speak.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

One cannot know the figures by simply looking off into the distance and saying how many ghost estates there are; one has to count them and that is what we did.

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

It should never have happened.

Photo of Séamus KirkSéamus Kirk (Louth, Ceann Comhairle)
Link to this: Individually | In context

Deputy Flanagan, please stop interrupting.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

In excess of 2,800 housing developments were identified where construction had commenced but had not yet been completed. It was wrong for some of the media commentators to characterise every one of the developments inspected by my Department as a so-called "ghost estate", a phrase which was constantly used. Such reporting is not just incorrect, it is sometimes irresponsible. As the detail of the survey shows, many of the developments have been completed, are fully occupied and perhaps have only minor completion issues outstanding, such as the provision of a final road surface.

Some 147 developments in the survey are fully completed but less than 10% of the completed units are occupied and 50% of the development surveyed are quite small, comprising 30 dwellings or less, with 25% comprising 10 dwellings or less. There are 1,050 developments which are potentially of concern because they are developments which are substantially incomplete but have significant occupancy. They are the ones the Deputy is most concerned about and I understand that.

Considering that there are approximately 1,000 substantially incomplete but significantly occupied developments, further analysis will reveal that the smaller proportion of these developments, probably in the region of 200 to 300, are in particular distress and are causing most concern. Distressed developments are those in which a developer or a receiver acting on behalf of the financial institution is not present and addressing outstanding completion issues. We have to ensure that the expert group, to which I referred, will actively pursue the issue and develop practical and policy solutions to ensure a satisfactory resolution of unfinished housing developments, and particularly the category to which I referred which includes people who are in particular distress.

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

I do not accept the Minister's response. Clearly, his Department was asleep at the wheel in a similar manner to the Financial Regulator. If he was on top of his brief he would have known what was happening on the ground. What is needed is hope for home owners. What hope will he give to home owners where developers have left and are bankrupt and NAMA is now in control of the housing estates? What provision will he include in his departmental accounts to pick up the tab and put these housing estates to right in order that people can get on with their lives and live in housing estates which do not have any health and safety risks?

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

As the Deputy knows, a guidance manual is being developed and I expect it to set out the roles and responsibilities of the key stakeholders in addressing unfinished housing development, identify the type of developments and issues that need to be prioritised for action in the short term, summarise the wide range of statutory powers currently at the disposal of local authorities to resolve those urgent matters, and establish organisational context leadership on this issue at local authority and national levels, building on existing best practice approaches that have been developed in Ireland and elsewhere in dealing with the issue.

We are identifying the provisions and powers which can be used to remedy those problems. For example, under the Derelict Sites Act 1990 local authorities are empowered to direct the owner or occupier of land which is or may become derelict to take measures necessary to prevent it from becoming or continuing to be a derelict site. The carrying out of any work specified in the notice is exempted development. The legal definition of "derelict sites" is broad and could be adapted to abandoned residential housing estates. Local authorities could use the Derelict Sites Act in a targeted fashion to address sites which have become derelict under the stewardship of aberrant owners or occupiers.

We are doing a lot and we can use other legislation. The Deputy should be assured that my colleague, the Minister of State, Deputy Cuffe, is dealing with this issue. He launched the document on ghost or unfinished estates. As we have published that report, we are ensuring that the problem will be dealt with as quickly as possible.