Thomas Pringle (Donegal South West, Independent)
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Question 8: To ask the Minister for the Environment; Heritage and Local Government if he will raise the income limits for housing applicants contained in the Housing (Miscellaneous Provisions) Act 2009 where Donegal County Council will not accept applications from single applicants on to the housing list on incomes over €20,000 per annum and €24,000 per annum for households over more than one person [7045/11]

Willie Penrose (Longford-Westmeath, Labour)
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The Housing (Miscellaneous Provisions) Act 2009 provides for a new process of housing needs assessment for applicants for social housing support. Until now there have been different practices in housing authorities regarding the way in which applicants for social housing support had their income means-tested. The Social Housing Assessment Regulations 2011, which came into force on 1 April 2011, standardise both the income limits and the definition of income.

The Social Housing Assessment (Amendment) Regulations, made on 29 March 2011, amend the original regulations and provide for a general increase of €5,000 in the income bands. I am sure the Deputy will be delighted to hear the new increased limit in the Donegal authorities' band is €25,000 net income for a single-person household, with a maximum limit of €30,000 net income for a household with three adults and four children or more. Net income is defined in the household means policy approved under the regulations as gross income of all kinds, including most forms of social welfare benefits or assistance, less income tax, PRSI and the universal social charge. Child benefit also is disregarded, as is most temporary income.

Deputy O'Dea was right. How does that questions lottery operate?

Thomas Pringle (Donegal South West, Independent)
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I join in the congratulations offered to the Minister and Ministers of State on their appointments. It definitely appears as though the Minister of State, Deputy Penrose, is carrying all the weight today in the Chamber. I welcome the increase in the income limits that was introduced last week and I had submitted this question just before I learned of them. However, placing such income limits on applicants for social housing at such a low level will place an unfair burden on people in low-paid jobs. Does the Minister of State agree that having such low levels will bring difficulties in light of the difficulties people are experiencing in accessing finance to purchase houses, even though house prices have collapsed? The difficulties in raising finance and mortgages in the market place have been well documented in this House and having such low income limits will have a seriously detrimental effect on people who are in great need of housing and where the private housing market is substandard and does not provide for their needs.

Willie Penrose (Longford-Westmeath, Labour)
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I am plainly surprised by that response as someone who was a member of a local authority for almost 20 years. Income limits were in place and a person with €25,000 net had a significant income, as it is net of all the charges. However, the overall impact of the new arrangements and amended regulations is expected to result in an increase in the number of households eligible for social housing support. I acknowledge this may lead to a lengthening of waiting lists but I believe it is important to broaden the base from which social housing tenants are drawn to promote sustainable communities. In tandem with the progressive implementation of the provisions of the Housing (Miscellaneous Provisions) Act 2009, I intend to undertake a wider review of social housing policy in general. This will examine how best the needs of those on housing waiting lists can be met in the context of further development of sustainable communities, while taking account of new housing options and the level of available funding and resources. This review will, of course, include an examination of the impact of the new housing limits.

I should emphasise that people who already are tenants of local authorities will not be affected by the new limits. They will not be reassessed or anything like that and consequently, only new people joining the housing lists will be assessed. The fact that I increased the limit by €5,000 immediately is indicative of my desire to ensure there will be sustainable communities. Moreover, new incremental purchase schemes and similar measures are being introduced and hopefully this is where some of the aforementioned people will be able to participate. Although, as the Deputy is aware, they will not jump up the list because of the time period, they may have an alternative avenue on which to get on to a housing waiting list and then avail of some of the other policy initiatives that hopefully will be of benefit to them.

Thomas Pringle (Donegal South West, Independent)
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I hope the increases announced last week will improve this situation. Certainly however, the view of Donegal County Council was that a large number of people on the housing list would be affected. Members will monitor its implementation in the coming months to ensure this is not the case.

Willie Penrose (Longford-Westmeath, Labour)
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Yes, I will do that. I note that a number of other colleagues across the floor of the Chamber also had concerns in this regard and there is an increase for them as well. I certainly will keep an eye on it. While a small number of people on the housing lists in certain local authorities may fall off, I suspect the number will be few. I checked briefly the Deputy's local authority and I do not believe he will encounter too many people who will fall through the net. However, it certainly is a matter that I will keep under review and of which I will take cognisance to ensure that those who are on the waiting list do not suddenly lose their priority. I am open to suggestions from colleagues as to how matters can be improved in a social housing policy review on which I intend to embark in the coming months. However, I may as well be honest with the Deputy by noting that the unfinished housing estates will take up a considerable amount of time.