Mick Wallace (Wexford, Independent)
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66. To ask the Minister for Environment, Community and Local Government if he will outline the projected social housing construction programme; the number of new builds that are expected to be delivered under the programme by the end of 2016; the number of new builds expected to be delivered through the Part V arrangement; and if he will make a statement on the matter. [25603/14]

Mick Wallace (Wexford, Independent)
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My question seeks to ascertain how many social housing units will be built by the end of 2016 and how many new builds will be delivered through the Part V arrangements. Part V has not been operating properly and the construction industry is lobbying hard to have it eliminated as a means of incentivising builders to restart house building. Is there any truth in the rumour that the Government is considering the possibility of reducing the Part V requirement to 10%?

Jan O'Sullivan (Limerick City, Labour)
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The number and method of delivery of social housing units in future years will be determined in the course of the annual Estimates process. The social housing strategy, which is to be published in the third quarter of 2014, will inform the upcoming Estimates discussions. The financial parameters within which we continue to operate will not facilitate a return to large-scale capital funded construction programmes. However, earlier this year, I signalled a return to modest levels of new social housing construction, with an announcement of 1,000 new housing starts over the 2014 to 2015 period. The Government also recognises the importance of a wider response to social housing support needs through a variety of mechanisms.

In the 2014 Estimates, funding for housing, at more than €587 million, was effectively maintained at 2013 levels. This includes a €50 million capital stimulus to support construction and related programmes, primarily in the housing area, including €30 million to recommence a public housing building programme. As part of the Government’s additional €200 million stimulus package for the construction sector, announced in May 2014, a further €50 million is also being provided for social housing delivery. Through this overall level of funding, I expect the final output across all social housing programmes for 2014 to be in the region of 6,000 new housing units.

In March 2014, I announced the approval of 56 social housing construction projects, with an overall value of some €68 million, under the local authority housing construction programme for 2014-2015. This will deliver 449 new units of accommodation for people on the housing waiting list.

Some €20 million of the May 2014 stimulus announcement will be made available for further new local authority projects, details of which I intend to announce shortly.

Earlier this year I also announced details of a new measure with funding of €15 million which will be invested in bringing 952 vacant and boarded-up local authority houses back into productive use. Some €20 million of the additional May 2014 stimulus will be used to fund the refurbishment of an additional 1,000 vacant units.

I also announced details of the allocations to local authorities under my Department's capital assistance scheme. I realise my time is running out and I want to get to Part V.

Part V of the Planning and Development Act 2000 has contributed to increased social integration and more sustainable mixed tenure communities. The review of Part V, which deals with affordable housing and ensuring there is a social housing gain from private development, will be completed shortly. Any legislative changes required on foot of the review will be incorporated into the general scheme of a planning Bill, which is currently in preparation. As the social housing gain under Part V is contingent on the extent of private development taking place, it is not possible at this time to estimate the number of units that will be delivered under Part V.

Mick Wallace (Wexford, Independent)
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The main argument coming from the construction sector is that profit margins on houses are too low for the banks to consider lending, and Part V eats further into these profits. I believe that anyone who would buy a site today and build houses on it would still make some money on it. If the banks will not lend, it tells us there is a problem with the banks. The taxpayer bailed the banks out, it kept them on their feet and now they will not lend to builders unless the sector becomes more attractive and there is no risk whatever involved. The same bankers are prepared to go on the financial markets and gamble with funding they garnered from the taxpayer but they are not prepared to lend to build houses. Builders do not build houses to create homes for people. They build them to make money. However, there are other ways. Doing away with Part V would be a terrible mistake.

Part V is not only about the provision of social housing. It is primarily about social integration and it functions to tackle the creation of ghettos. It was ridiculous that, between 2002 and 2011, only 5,000 social units and 10,000 affordable units were provided by Part V.

I note that in Clancy Barracks, Kennedy Wilson, an international hedge fund, is looking to build a couple of hundred units. It has applied for permission and has signalled it thinks the site is unsuitable for social units. I am sure it thinks so, but the Minister of State should not let it away with it.

Jan O'Sullivan (Limerick City, Labour)
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Deputy Wallace is correct that we want to put pressure on the banks and ensure zoned land is built on. All these issues are addressed in Construction 2020. I acknowledge that final decisions have not been made on some elements, including Part V, but I assure Deputy Wallace that I have no intention of caving in to any lobby on Part V.

We intend to maintain a Part V. We are looking at whether its format needs to be changed because, as Deputy Wallace correctly stated, it did not deliver. In fact, it delivered a small number of units in comparison with what it was meant to deliver, despite all the construction that was going on during the boom. It needs to be reformed.

I want to protect the 10% social housing element of it, but we have not yet finalised our decisions on it. The other 10% relates to affordable housing. There is a general issue of affordability that needs to be addressed and we need to have a conversation around what we mean by affordability. There are issues to be decided in that respect.

Certainly, my commitment is that we will get units from Part V. In the past, unfortunately, while money or land was transferred, it did not result in the units for social housing.

Mick Wallace (Wexford, Independent)
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Will the Minister of State give a commitment today that the Government will insist on at least a minimum of 10% social housing on every site which is given planning permission in the future? That is a must. Apart from providing social housing, it tackles the considerable social problems in the city.

If there is a problem and banks will not lend to builders, is there not more of an argument than ever before for the Government to bring in the strategic investment bank it promised in the programme for Government where it can decide what to lend and to whom to lend?

We cannot trust the banks to do it and cannot depend on them to supply us with the necessary funding to carry out infrastructural projects. We have saved banks that were useless and broke, and now they will not even function in the interests of the State and the people. If we cannot tell them what to do, we need our own strategic investment bank.

A huge problem remains. I have just read the Kenny report and it is complicated. It is difficult to come up with a system to control the price of development land but it is very much worth doing.

Michael Kitt (Galway East, Fianna Fail)
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Thank you, Deputy. I must call the Minister of State now.

Mick Wallace (Wexford, Independent)
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We must get a measure on it because as long as development land can be sold for telephone numbers we will always have a problem with housing in Ireland.

Jan O'Sullivan (Limerick City, Labour)
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The Government has decided to establish the strategic investment bank, so that is going ahead.

The Government has not yet made a decision as to what exactly the revised Part V will be. I can assure the Deputy, however, that I am strongly committed to ensuring that the social housing element of that is maintained and that it will deliver units.