Dáil debates

Thursday, 10 December 2015

Ceisteanna - Questions - Priority Questions

Local Authority Housing Provision

10:00 am

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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5. To ask the Minister for Environment, Community and Local Government in the context of the current housing and homelessness emergency and in order to accelerate the delivery of permanent social housing, if he will consider the purchase of hundreds of permanent homes currently advertised for sale as an alternative to modular housing, the direct transfer of National Asset Management Agency property and cash reserves to the local authorities, and the direct employment by the State of building workers, architects, engineers and so on to build social housing and thus eliminate the lengthy delays involved in the outsourcing and tendering process; and if he will make a statement on the matter. [44256/15]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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As we face into Christmas, the housing and homelessness crisis continues to spiral out of control. My question requests that the Minister of State consider three measures to deliver immediate and permanent social housing on a greater scale and more quickly, including, rather than the construction of modular homes, the purchase online via Myhome.ieof 739 houses currently for sale for less than €200,000 which would ensure the availability of permanent homes for people before Christmas. The cost of construction per modular unit is €190,000. The houses to which I have referred are available at a cost of €200,000 each. The Government needs to purchase these houses and thereby provide people with permanent homes.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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Local authorities and approved housing bodies are utilising a wide range of delivery approaches to accelerate the provision of social housing. This multifaceted approach includes acquisitions, as proposed by the Deputy. I will provide data in this regard as I go through my reply.

The range of delivery approaches available includes the remediation of vacant social houses, many of which were voids, in respect of which regeneration has been very successful; the lease of units; the use of the rental accommodation and housing assistance payment schemes; and the construction projects, including construction of modular units to which the Deputy referred. The Government is also approving direct acquisitions by local authorities and approved housing bodies.

A strong pipeline of new social housing construction projects is now in place following on from the announcement earlier this year of the first major direct build social housing programme under the strategy. Recognising that these projects will take time to come on stream, the Minister, Deputy Kelly, and I have encouraged local authorities to acquire suitable properties for social housing, while being sensitive to local market conditions and ensuring value for money for the taxpayer. I expect that in the region of 700 such units will be acquired by local authorities this year.

In relation to NAMA residential properties, I expect more than 2,000 units to be secured for social housing purposes from the engagement that has been ongoing between my Department, NAMA and the local authorities for a number of years. NAMA is also funding the construction of an estimated 20,000 new residential properties in major urban centres and 10% of that output, some 2,000 further units, will be, as per Part V, provided for social housing. Approximately 400 new local authority housing posts have been approved by my Department to ensure capacity and preparedness for delivery of the social housing targets, including the appointment of architects, engineers, financial and administrative staff. As I said, the approach being taken is a multifaceted one. I assure the Deputy that every avenue is being explored to ensure delivery of the social housing which we all acknowledge is badly needed.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The Government is paying €190,000 per unit for 500 modular houses, many of which will not be delivered until the end of next near. There are 739 houses listed for sale today on the Myhome.iewebsite, each of which cost less than €200,000. Why would the Government choose to buy temporary modular homes, many of which will not be delivered until next year, when it could purchase 739 houses online today, many of which could be refurbished and ready for occupation before Christmas, thereby providing people with permanent homes? I am proposing that this is what the Government should do with the money it has available.

In regard to the 2,000 housing units to be provided by NAMA, this is a pathetic return from NAMA as the biggest real estate agent in the world. We need to open up the books of NAMA, which is currently selling off huge blocks of land to vulture funds from the US, including LoneStar.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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A question, please.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Rather than allow the sale of that land, the Government should be putting that land and NAMA properties into the hands of the local authorities to assist them in housing provision.

To short-circuit the excess delays in the delivery of social housing, I propose that the Government provide housing in-house through the local authorities rather than outsource responsibility in that regard because that process only adds a further year to the delivery of social housing.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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As I have already told the Deputy, every avenue in terms of the delivery of social housing as quickly as possible is being explored. The voids programme has been successful, with almost 2,000 voids having been turned around and returned to use this year. As I said, we expect approximately 700 houses to be acquired through the local authorities, a measure for which the Deputy is calling. We must take a balanced approach to this issue. If, as proposed by the Deputy, the Government were to purchase every property currently for sale in the country, that would impact on the ability of first-time buyers to buy houses which, in turn, would impact negatively on the market. It is important that first-time buyers have an opportunity to purchase too. We need to take a balanced approach to this issue. The Government is taking every avenue in the context of increasing the number of social housing units available. If in the morning the Government bought up every house for sale, this would impact negatively on the ability of other people to purchase a house, which is their entitlement. The Government is addressing this issue in a measured and balanced way.

In regard to the modular homes, whether one agrees or disagrees with them, they are intended to remove families from emergency accommodation. I agree with the Deputy that the initial cost in this regard is high but this is because we are paying a premium for them in the context of the need for delivery of them very quickly. I would expect that the next tranche of modular units will be delivered at a cheaper cost per unit than the amount mentioned earlier by the Deputy.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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As we approach Christmas, 1,000 children are either living on our streets or in emergency accommodation. What is the priority? There are 739 apartments or houses available for sale in Dublin for less than €200,000 each, which could become permanent homes. Why would the Government choose to spend €190,000 per unit on modular houses, which are temporary homes in which it is proposed people will reside for only six months, when it could purchase 739 permanent homes in Dublin today, thereby removing those 1,000 children from the street, which is utterly unacceptable? Will the Minister of State respond to my question in regard to the opening up of the commercial books of NAMA. NAMA has failed us in terms of the delivery of social housing. We need to open up its books with a view to increasing the proposed 2,000 units return, which is a pathetic return from NAMA.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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I stated earlier that NAMA has identified over 6,000 units as suitable for provision to local authorities or approved housing bodies. Whether the Deputy likes it or not, the housing authorities are responsible for housing people. The Government sets policy and provides funding to local authorities and approved housing bodies. If the local authorities or approved housing bodies come forward with priorities, be that direct build, acquisition or void turnaround the Government will provide the funding. As I said, the Government has already funded 700 direct acquisition and construction projects. Over 10,000 housing units will be provided via capital and current projects. The Deputy needs to acknowledge that. We are using every avenue available to us to address this issue. The provision of modular homes is an additional initiative to try to accommodate people in emergency accommodation as soon as possible. I agree with the Deputy that the cost per modular house is expensive but, as I said, we are paying a premium in that regard because of the speed of delivery with which these houses need to be delivered. It is another option of delivering houses, on top of the many others we are working on.

I ask for the Deputy's help in this area. We need greater support from councillors for projects put before them under the Part VIII arrangement and to have those projects delivered as quickly as possible.