Brian Ó Domhnaill (Fianna Fail)

This Bill will improve services and delivery and give effect to the programme of social housing reform. These are outlined in the Developing Homes, Sustaining Communities document, a policy document published in February 2007 by the Department of the Environment, Heritage and Local Government. It updates provisions in previous legislation and replaces nine housing Acts from 1966 to 2004.

The new document has amendments that I welcome. It gives extended powers to elected local authority members but also deals with a number of specific, clearly defined areas. The Bill provides for measures with regard to how social housing is delivered by housing authorities. The Minister has new powers to issue policy directions with which housing authorities must comply. There are guidelines to which housing authorities must have regard in the performance of their statutory functions. That is highlighted in Sections 4 and 5 of the Bill.

Section 10 contains a comprehensive statement of housing services provided by local authorities. There are new powers for elected members to make housing services plans for the delivery of housing in their areas. They refer to social and affordable housing supports that are in line with the housing strategies of respective county development plans. These plans will be implemented through three-year programmes drawn up by managers enrolled each year. Elected councillors will have a key input into these plans.

It is also important to look at the value for money element of building houses in local areas. Because I come from a rural county I know that one of the best ways to house people on a value for money basis is available through the specific instant cottage scheme. I very much regret that my local authority in County Donegal has taken a backward step in terms of developing these houses. This is against the wishes and the best interests of elected members who wished to see specific instant cottages developed because they are better value for money. If a scheme of houses is to be built the council or the Department must purchase the land and then build the houses. In the case of specific instant cottages the land is provided by the applicant or the applicant's family and all that must be done is build the house. They are better value for money and they permit the fabric of rural townlands to develop and continue. If people want to live in rural areas they must be supported in doing so. It must be impressed on local authorities that they should explore this avenue and avail of this scheme as far as possible.

A number of Senators referred to single male applicants and this is an issue across the country. Because of the system now in place single male applicants find it extremely difficult to obtain local authority housing and may be on the housing list for many years. Some never get houses. That problem must be addressed by local authorities. I am not sure how it will best be done. Perhaps a percentage of available houses might be allocated to single males or females. The issue must be examined further.

Another emerging scenario is that of Irish people living abroad who wish to come home. People emigrated from these shores in the decades between the 1940s and 1970s because they could not find work in Ireland. They left here to find opportunities and employment abroad and built up such countries as England, Scotland, Wales and others. Now, when they might wish to come home they cannot afford to do so as many may not have pensions. The Safe Home organisation, based in the Leas-Cathaoirleach's home county, does a great deal of work in this area. It has been able to house people not only in County Mayo but, by working with other local authorities, also in counties such as Kerry, Donegal and others.

A mechanism should be made available, with the assistance of the Department and the support of the local authorities, to set aside a number of houses in each county for returning emigrants who cannot afford to come home on their own. Not only would such people be returning home, those who have an eligible pension also would be bringing it home, which would constitute a revenue stream into a local community. I suggest this measure also could be considered.

The Bill makes statutory provision for a number of important social housing supports which include a new incremental purchase scheme, whereby existing social housing tenants and households that qualify for social housing support will be helped to become owners of houses that are newly built by housing authorities and voluntary and co-operative bodies. Full ownership of the house will be transferred to a household on purchase of an initial share of the equity. The housing authority or body will charge the property for the proportion of the equity not paid for and will release the charge in equal proportions for each year the buyer occupies the house until the charge is completely eliminated. The incremental purchaser will be able to resell the house at any time but will have to pay the housing authority or body that proportion of the proceeds equivalent to the prevailing charged share of the equity. This measure is outlined in sections 35 and 40.

Reference was made to the rental accommodation scheme, RAS. I greatly welcome the steps being taken in the Bill to place it on a statutory footing. The Bill provides for a comprehensive statutory framework for the provision of rented social housing through leasing or contract arrangements, notably the RAS, which was introduced in 2005. Essentially, as previously noted, it involves the local authority progressively taking responsibility for accommodated persons who are in receipt of social welfare rent supplements and who have a long-term housing need. Under the rental accommodation scheme, the housing authority pays the rent to private landlords who rent the accommodation back to the local authority.

While this is taking place sporadically, it is not happening nationwide. In my native county of Donegal the rental accommodation scheme is operating in the urban centres such as Letterkenny or Buncrana, but not in rural areas. While I am unsure whether these provisions are the answer, this is a step forward in that people may have longer term housing security by being housed in a dwelling for which a lease agreement has been entered into between the local authority and the landlord. Consequently, those affected will have some security because they will be aware they will be there for three or five years, as they try to make progress. The introduction of the statutory framework for the rental accommodation scheme will be welcome and beneficial and allow tenants to avail of it. More importantly, it will force those local authorities not rolling out the scheme, for a number of reasons, to so do.

Overall, the Bill is excellent legislation. It will support those who seek housing and support local authority members who ultimately are charged with the responsibility for drawing up the frameworks referred to in the legislation. I wish both the Minister of State at the Department of the Environment, Heritage and Local Government with responsibility for housing, Deputy Michael Finneran, and the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Michael Kitt, who is present, well in their efforts to move forward with this legislation. It will support those in greatest need, that is, those who seek social or affordable housing and who are unable to get on the housing ladder on their own.

My colleague, Senator Butler, mentioned the possibility that given the current economic climate, local authorities could negotiate with financial institutions when the latter find it necessary to take away property from those owners who are unable to make repayments. There is an opportunity whereby the local authorities may be able to work with the financial institutions in some way. Perhaps a mechanism could be found in this regard to assist a person who is living in such a house before that person finds it necessary to apply for a local authority house. Such persons should be supported in the houses in which they live, were they to encounter difficulty in paying the mortgage. Perhaps local authorities can help in this regard, although from a financial perspective, I am unsure how this could be worked out. However, this issue could be explored through the Department of the Environment, Heritage and Local Government in conjunction with county managers and local authorities nationwide.