Dáil debates

Thursday, 11 June 2015

Ceisteanna - Questions - Priority Questions

Building Regulations

9:50 am

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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4. To ask the Minister for Environment, Community and Local Government to outline his views on the supply of housing; and on whether regulatory costs imposed since the introduction of the new Building Control (Amendment) Regulations 2014 are responsible for dampening construction activity in the private housing sector. [22632/15]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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This question relates to the Building Control (Amendment) Regulations 2014. We have seen a major downturn in the construction of one-off houses, up to 70% in some cases, year-on-year according to the most recent figures produced. Ridiculous prices are also being charged, as was predicted. Many of the doomsday scenarios we had predicted associated with this legislation have, unfortunately, come home to roost. Has the Minister taken note of these reductions? Has he taken note of the consternation that it has caused in the one-off house-building sector? When can the Minister expect to address this issue, further to his recent announcements on same?

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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The Government’s Construction 2020 strategy sets out a comprehensive package of measures to restore the construction sector to a sustainable position within our economy and sets out a number of actions to increase the supply of good quality houses to meet a growing demand. My Department is the lead Department for a range of the Construction 2020 actions in the areas of housing and planning. Strong progress is being made, as demonstrated by the roll-out of the social housing strategy and the ongoing work on new planning legislation.

Deputy Cowen raised the matter of regulatory costs. The Urban Regeneration and Housing Bill 2015 provides for amendments to the Part V provisions on social and affordable housing in the Planning Acts. There will be an opportunity in the coming days to debate some of the aspects of this.

As a result of the Government's proactive and focused approach, house building activity is now showing clears signs of recovery. Moreover, we now have a credible building control regulatory framework in place, underpinned by the new arrangements introduced by SI 9 of 2014.

In overall terms, I am satisfied that the new building control regime represents a reasonable and appropriate response to the many building failures that occurred in the past decade and will lead to improved quality within the construction sector, something we would all welcome.

However, I am conscious that concerns have been raised relating to the costs imposed by SI 9 of 2014 relating to single dwellings, including self-builds and extensions, as referred to by the Deputy. As Minister of State, I have a responsibility to ensure that the cost of compliance with regulations is fair, reasonable and proportionate. I have already publicly indicated my willingness to consider concerns expressed and take whatever steps are reasonable and appropriate to address them.

A broad review of SI 9 of 2014 is currently under way and includes a special focus on the impact of the regulations on single dwellings and extensions in particular. A report on the key concerns raised during the review and the recommended course of action for addressing these concerns will be prepared by my Department in the coming weeks with a view to ensuring that any changes deemed appropriate will be effected as a matter of priority subsequently.

10:00 am

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I welcome that the Minister of State has committed to considering the key concerns emerging from the review with a view to amending the regulations introduced by statutory instrument in 2014. I urge him to ensure his Department and those who have responsibility in this area move swiftly to rectify the problems that have arisen in regard to one-off house building and extensions to houses because they are causing fear and consternation. I ask him to move speedily in addressing these issues.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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I acknowledge the Deputy's views. New housing completions in 2014 amounted to 11,016 units nationally, an increase of 33% on the 2013 figure, with a further 2,639 units completed in quarter one of this year, an increase of 26% on the previous year. The projections for increased housing output are positive. In respect of planning permissions in the pipeline, planning permissions were granted for 2,144 dwelling units in the third quarter of 2014, compared to 1,400 in the same period of the previous year. This represents an increase of 52%. In line with the general collapse in economic and construction activity, the one-off house building sector contracted dramatically in the period from 2005 to 2013, with the number of units built falling from more than 19,000 to just under 3,000. Positive signs can now be seen, however, with 864 commencement notices for one-off homes recorded during the first four months of this year. If this level of activity persists, we can expect between 2,500 to 3,000 one-off homes to be developed in the current year. I take note of the Deputies concerns, however, and hope to address them in the coming weeks.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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In February, the Department of the Environment, Community and Local Government confirmed that the number of commencements had decreased since the introduction of the building control (amendment) regulations. It indicated that more than 5,000 construction projects commenced since the new regulations took effect on 1 March 2014, of which more than 1,100 were new build single dwellings. In comparison, the total number of commencement notices lodged for 2013, an historic low point for activity, was 7,456, including 3,000 for one-off houses. That underlines my point that the construction of one-off housing and extensions declined by up to 70%. Rather than argue the figures, I acknowledge the commitment made by the Minister of State in regard to the review and ask that the concerns expressed by those in the construction sector and engineering professionals are addressed by amending the regulations.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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The Deputy will agree that dramatic decrease in one-off house construction was due to a number of reasons, primary among them the economic consequences of the crash and access to credit for young people who wanted to build homes on their own land. It is not entirely due to the cost of regulations but the Minister and I have undertaken to review the regulations after one year. I met all the stakeholders in the Custom House and I listened carefully to their concerns. A number of detailed submissions have been made and they are currently being reviewed and analysed. We will be considering them further in the coming weeks and I hope to respond appropriately to any concerns. We must be conscious of the need for quality and sustainability in housing construction, as well as learn from the mistakes of the past, but I acknowledge that genuine concerns arise and I will endeavour to address them.