Dáil debates

Tuesday, 4 February 2014

Other Questions

Local Authority Housing Provision

3:30 pm

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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89. To ask the Minister for Environment, Community and Local Government the number of new social housing units that were built by local authorities in 2013; the current number of local authority homes here; and the amount by which he intends to increase that number by the end of 2014. [5030/14]

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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We spoke earlier in answer to a previous question on the housing shortage. What I want to know specifically is the number of housing units built by local authorities in 2013, the number of local authority houses we have in the State and what the Minister will do about this crisis we have.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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While the figures in respect of housing completions for the fourth quarter of 2013 are not yet available, I expect that some 5,000 units of accommodation were delivered across the full range of social housing measures last year. Delivery of social housing is significantly facilitated through more flexible funding models such as the rental accommodation scheme and leasing, but the Government continues to be committed to other funding mechanisms, including the use of private finance by approved housing bodies, AHBs, for the construction and acquisition of social housing units.

In July 2012 my Department announced a construction and acquisition programme for the local authority and voluntary sectors over the period 2012 to 2014. This comprised 808 units of accommodation in total, involving 185 units by way of local authority construction, 246 local authority house purchases, 111 units of construction under my Department’s capital assistance scheme and 266 acquisitions by AHBs.

Over the course of 2013 my Department issued funding approval for the acquisition of a further 385 units of accommodation involving 250 local authority and 135 AHB house purchases. As I am awaiting returns for quarter four in respect of housing completions, I cannot as yet provide firm figures for the year as a whole. However, at the end of September more than 400 units had been completed.

In terms of overall social housing numbers, the eighth annual report on service indicators published by the local government management services board in April 2013, which details service indicators in local authorities in 2011, put the total number of dwellings in the local authority social housing stock at 130,810. Looking ahead to 2014, I recently signalled a return to modest levels of new housing construction over the next two years. I expect around 1,000 new starts over that period. Some 400 of these will be delivered under the local authority housing construction programme, 250 will be delivered by approved housing bodies and 350 new homes will be provided under regeneration. I will be making more detailed announcements on each of these measures shortly.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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I thank the Minister of State, but the problem is that she is only scratching the surface. There is a major housing crisis. The Minister said 185 council houses were built last year. There are more than 100,000 people on the waiting list. Housing need has doubled. In County Laois the housing waiting list has more than doubled over the last four years. Fewer than 500 NAMA properties have been developed. Private rents are increasing. Some of the rental accommodation scheme, RAS, tenants who rely on social leasing are being moved on because landlords decide they want to end the contract. There is a major housing need. Dublin City Council built only 29 houses last year although it has a waiting list of 16,000.

I want the Minister to view this differently. She might have a job convincing her partners in the Government, but back in the Marian year, under her party, many council houses were built. I want the Minister to consider the economics. In County Laois, for example, I estimate that the amount of rent revenue coming in will be almost €5 million this year. The amount spent on housing maintenance is €700,000. Local authority or council housing does not have to be a drag on the economy or on local authority budgets. House building is cheap now. I want the Minister to view this differently. We need a significant house building programme.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I have no ideological argument with Deputy Stanley. That is why we are commencing-----

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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What about Deputy Hogan?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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Deputy Hogan is not stopping me from building houses either. Unfortunately, what stopped us from building houses over the last number of years was the Celtic tiger boom and bust during which, despite the fact that a very large number of private houses were built, the local authority house building programme was not enormous. Later it was seriously constrained by the agreement with the troika whereby capital funding had to be cut back year on year.

We have turned the corner and are in recovery, which is why we are beginning again to construct local authority housing and I intend to ensure we continue with this. I accept what the Deputy has said in terms of need, but, unfortunately, we inherited the situation as it was and we are only now beginning to get back to construction. For that reason, we are using whatever methods we can, including NAMA units, leasing, the RAS and all of the other methods, to house people.

One of the more positive programmes this year will be the voids programme, a programme for dealing with void or empty local authority housing that can be brought back into use. We also want to encourage local authorities to turn around their empty houses as quickly as possible. Some are much better than others at placing new occupants in houses as soon as they are vacated.

3:40 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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We are almost out of time as we only have six minutes for each question. I ask Deputy Brian Stanley to be as brief as he can be.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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The programme to deal with void units is a good measure, but there are very few such units in County Laois. On funding, I accept that there is no crock of gold anywhere, but the European Investment Bank will lend at low rates for genuine projects where we can show a revenue stream and a cash return. There is no cash return in the leasing of social housing, as money is just being poured into black holes. I accept the budgetary position has been difficult in the past few years, but the Minister of State has said we have turned the corner. We are in a different position on housing and there are sources of funding. I put it to the Minister of State that in accessing money and it showing up on the balance sheet, there is an opportunity to set up housing trusts through the local authorities in order that the moneys can be sourced off balance sheet, invested and provide a return. A key element of such a scheme is that after rent has been collected for ten or 20 years, the house can be sold to the tenant, if he or she wishes to purchase it. The problem with social leasing and the RAS is that the moneys go into a black hole and cannot be taken back, yet we still have to find a home for these tenants and families. Leasing and the RAS are very short-term measures.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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We have made an application to the European Investment Bank for €100 million, to be used for the provision of local authority apartments in major cities. However, it will probably not affect County Laois. This is the first application we have submitted, but we will keep the option in mind for other construction projects.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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I hope the Minister of State is not considering Labour Party heartlands only.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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With regard to trusts, if local authorities want to set up voluntary housing bodies, we will not stop them. Also, we are moving towards regulation of the voluntary sector in order that it will be better able to raise funds. In that regard, I will meet the new regulatory authority tomorrow, but at this stage we are only implementing a voluntary regulatory code, in conjunction with the voluntary housing sector. We are moving towards new ways of providing funding in order to provide social housing.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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I must ask the Minister of State to look beyond the Pale. If the Government is borrowing €100 million, she must look beyond Dublin to other parts of the country. Houses are needed throughout.