Tom Morrissey (Progressive Democrats)

I thank the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Noel Ahern, for coming to this House to address this matter on the Adjournment. With regard to provisions for social and affordable housing, it is time to consider the progress made on the delivery and implementation of housing units under Part V. The original Part V provisions introduced in the Planning and Development Act 2000 did not make lands for which planning permission was granted before housing strategies were adopted subject to the current Part V. However, all lands for which planning permission has been sought since then have been subject to Part V. For that reason, we can expect a lot of houses to become available from this year.

Against that background, I would like the Minister of State to address a number of issues, one being the one size fits all approach to the drawing up of individual strategies by local authorities. While there will always be a need for social housing nationwide, the need for affordable housing is not significant in large parts of the country but is probably most acute in certain locations such as Dublin and parts of Cork and Galway. Where local authorities do not identify a need for affordable housing this should be fully reflected in their housing strategies. It is important that local authorities do not over-estimate the demand for affordable housing and thereby increase their landbanks.

Many builders find that the interpretation of the provisions of Part V of the legislation vary considerably throughout the country. Why is this the case? Furthermore, is it not the responsibility of the Department of the Environment, Heritage and Local Government to issue clear guidelines on how the provisions can be interpreted and implemented? Considerable time and energy are being expended on negotiating agreements between builders and local authorities to such an extent that the implications for the delivery of some social housing units could be cause for concern.

Reaching agreement on the rate struck for the purchase of social and affordable housing units by the local authority and the passing of those units on to approved tenants seems to be a contentious issue. I have heard that an agreement on the price of a three bedroom, semi-detached house on the market for €300,000 can vary by as much as €50,000, with the builder asking a price of €250,000, a discount of 17%, and the council offering it to a tenant for €200,000. There are many examples of this practice throughout the country. In some premium locations, the difference in price can be much greater. We have expensive social and affordable housing units in the docklands area and in other premium locations in Dublin. The question must be asked as to whether such housing provision in those areas represents the best use of resources.

The eligibility criteria for such housing is also a matter of concern. To be eligible an applicant must meet certain criteria. Where there is excess demand for affordable housing units in some premium locations, or in specific locations where there is a requirement for social housing, how can we ensure the allocation of such units is transparent? Dún Laoghaire-Rathdown County Council introduced a lottery system. I heard of a case where a single person was offered an apartment in an urban area outside Dublin and refused it because he wished to be allocated a three bedroom house so he could rent out two bedrooms. Is that person acquiring an affordable house or becoming a landlord? I would like the Minister of State to address that question because many of these units will come on stream in the foreseeable future, which is noteworthy. I would like the Minister of State to address the points I raised.