Dominic Hannigan (Labour)

I welcome the Minister of State to the House. I am glad the Leader has facilitated this debate today because housing is of great concern to people throughout the country, not just Members of this House. The housing industry has, until recently, been the bedrock of the construction industry and has played a large part in the creation of the Celtic tiger.

Since 1997, over 600,000 new houses have been built. In other words, one third of our housing stock has been produced since then. Over half of these houses are in new housing estates dotted around the country, mostly in urban areas. Many of these estates were poorly planned and, when they were built, the necessary infrastructure, including playgrounds and schools, was not put in place. I know of many estates with no footpaths around them. While we must ask why this was allowed to happen, we must recognise there seems, at last, to be an improvement on foot of the new planning regulations that affect new estates. Furthermore, given the new building regulations, it is hoped new estates will be planned properly, sensitive to environmental requirements and more energy efficient.

I will focus on two other areas, the management of houses in housing estates and the affordability of housing in general. Outside Dublin, the management of estates comprises a major problem. There is no parks department in many counties, including my county, County Meath. Consequently, there are no management rules or regulations and it is not clear whether it is up to the council or the residents to take care of the common areas.

Recent advice notices from the Departments call for a faster process for taking charge of estates. However, in many council areas there are many unfinished housing estates. The developers have walked away and considerable work still needs to be done. The bonds are not sufficient to cover the cost of the work. It is one thing for the Minister to tell the local authorities they should take charge of the estates, but it is not clear where the additional money will come from. It must come from somewhere. Will the Minister of State make a statement on how this will work in practice? In County Meath alone, efforts are being made by residents of scores of estates to have councils take charge of them.

Some estates have their own management companies. In this regard, we are told legislation is due shortly that will specify how to deal with the issue of management companies. It is badly needed and will not be before time.

Issues arise regarding the affordability of housing, in respect of which many people should have had options over recent years. Unfortunately, they have not had such options and the Government's track record in this regard is abysmal. Part V of the Planning and Development Act 2000 was meant to result in 20% of all new housing developments being made available for social and affordable housing. However, the ratio of affordable to social housing differs according to the area in question. In east Meath, for example, 17% of the required 20% is supposed to be affordable housing while 3% is supposed to be social housing. This ratio varies throughout the country. The requirements in this regard should have generated approximately 30,000 homes by 2006 but only 3,000 materialised.

There is a straightforward reason for these developments. The Government changed the law to allow developers to give money to local authorities in lieu of houses. The local authorities were supposed to use this money to purchase or build houses but this did not happen. The money disappeared, be it on day-to-day expenditure or other schemes that were the flavour of the month. I do not know what it was spent on and will not speculate but it is clear that, in the vast majority of cases, the money was not used to increase the local housing stock.

Our analysis suggests approximately 6,000 homes should have been produced every year by local authorities since the enactment of the Housing and Development Act 2000. This has not occurred and we need to tighten up in this regard.

The social housing list, which is due to be updated later this year, is of concern. Given the current economic decline, it is probable that the list will grow longer. However, this presents an opportunity to build more houses and kick-start the construction industry. The last detailed publication in this regard was published by the Department three years ago, at which time it was complimenting itself on the fact that the number on the housing list was only 40,000, which represented a 10% decrease over the preceding three years. I am not sure this was a cause for celebration because the figure had increased by 50% in the preceding ten years, namely, from 20,000 to 40,000. This is creating problems nationally. In Navan, for instance, there was an increase of 6% in the three-year period. In Drogheda Borough Council there was an increase of one third in just three years.

Since we are beginning to experience an economic downturn or an opportunity for savings, the unemployment rate is increasing, as is the cost of living. It is therefore clear that homes will be harder to pay for. Those with large mortgages will see an increase in repayments, as will those who rent their homes.

The rent allowance structure requires reform. One must ask whether the current rent allowance system distorts the number of people actually seeking housing. Anyone who ends up availing of a jobseeker's allowance on becoming unemployed might seek a rent supplement to get him through tough times. The number in this category is very likely to increase but it is necessary for anybody seeking rent allowance to get onto the housing list first. Therefore, it is of concern that this might distort the number actually waiting for social housing.

Almost 14,000 of the people on the housing list are receiving supplementary rent allowance. However, anyone who takes up full-time employment will immediately lose this benefit, regardless of how small his or her income. In many cases, it is more economical to stay out of the workplace and continue receiving rent allowance. The allowance can serve as a disincentive to taking up employment and is therefore almost like a poverty trap. The rent allowance system is in need of real reform, for various reasons.

One of the most important housing supports is outlined in the Social Housing (Miscellaneous Provisions) Bill 2006. This will afford those who have benefited from social housing for a long period the option of buying their homes from the local authority. This is an important step in the development of housing policy and the sooner it is taken, the better. However, the Bill has been delayed for two years. It did not materialise in 2006 or 2007 and, although the Taoiseach promised it would be considered before the summer recess, in two days, there is no sign of it. Will the Minister of State inform us when it will be published?

Some improvements have been made to the planning and building regulations governing new housing developments but we need to do more, particularly regarding the supply of affordable and social housing. The downturn in the construction industry could be addressed by investing more in social and affordable housing. This, in turn, would reduce the numbers on housing lists.