Noel Ahern (Dublin North West, Fianna Fail)

I thank Senator Doherty for raising this matter. I am taking the Adjournment on behalf of my colleague, the Minister of State with responsibility for housing, Deputy Michael Finneran, and I am pleased to have the opportunity to speak on issues pertaining to social and voluntary housing and co-operative housing in particular.

This has been the best year on record in terms of investment in voluntary and co-operative housing. The overall investment this year will be in the region of €390 million, an increase of €127 million on 2007. Starts within the sector reached record levels last year and this trend has continued through 2008. This positions us well to meet the challenging target of 6,000 new starts by the voluntary and co-operative sector for the 2007 to 2009 period, as set out in the social partnership agreement, Towards 2016.

The provision of high quality accommodation by approved housing bodies is an integral part of the Department's overall response to delivering on social housing need. The voluntary and co-operative housing sector is a valued partner in providing homes for low income families and for persons with special housing needs, including the elderly, the homeless and persons with an intellectual or physical disability.

In the past 25 years the voluntary and co-operative housing sector has delivered 22,000 units of accommodation nationally. Clúid Housing Association is a not-for-profit, approved housing body and has been the second biggest provider of voluntary housing in Ireland over recent years.

The Clúid housing scheme at Magheracar, Bundoran, was completed in 2001 with the aid of a grant of €5.4 million under the Department's capital assistance scheme. The Magheracar scheme consists of 46 three-bedroom houses. Tenants were drawn from the Bundoran Town Council social housing list. The heating in use is the ESB's Goldshield electric storage system. Storage heaters are provided in the hallway, living room and kitchen with electric wall heaters installed in bedrooms. In addition, there is an open fire in all living rooms.

In 2002, residents advised Clúid of their concerns in relation to the efficiency of the system and the high energy costs over the winter period. In response to this, Clúid undertook an examination of the system by a qualified professional to ensure it had been properly installed and that it was operating efficiently. Clúid also sought the assistance of the ESB to monitor usage and to advise on operational issues. The examination concluded that the system was properly installed but, in many cases, it was not being operated in the most cost-effective manner. The system is designed to give optimum cost efficiency when 80% of electricity is used at the night rate. The examination showed that night counted for about 50% energy usage on average and this had a major impact on cost.

I share the Senator's concern that tenants should not be over-burdened in terms of energy and heating costs. The Department's social housing investment programme is focused on delivering high quality housing that is energy efficient and sustainable. Housing practitioners have been proactive in incorporating energy efficiency considerations into their housing schemes, well in advance of the new standards set out in the recently revised Part L of the building regulations.

I am sure Senator Doherty will appreciate that my Department's primary role in relation to voluntary housing is to ensure sufficient funding is provided to meet the ongoing demand for new schemes. Operation and maintenance costs are, in the first instance, a matter for the individual housing bodies. The Department will ask Donegal County Council, which is responsible for the administration of the voluntary housing schemes in the county and which nominates tenants for schemes, to liaise with the Clúid Housing Association on the matter of the energy costs for this estate and advise on how these might be minimised into the future.

I realise that reply is rather general and does not address what the Senator has asked about whether an application has been submitted for the replacement of the scheme. As a former Minister of State with responsibility for housing, I recall that someone was saying at that stage that these were built as summer homes. However, that might be an urban legend rather than fact. I hear what the Senator is saying, however. It might well be that Clúid has been talking to Donegal County Council. It does not appear from this reply that the council has made any submission for replacement yet.

Senator Doherty referred to a maintenance levy, and that is probably to insist the systems are maintained. I seem to recall a scheme somewhere else a few years ago where there were problems. It might have been a different type of system, but tenants were not maintaining it and there were some health concerns because of fumes. It may be that people have to pay a maintenance levy so that this is done.

On another issue, the Senator mentioned a figure of €7,000 which will be spent on community projects. When schemes such as this are built, if memory serves me correctly, there is a capital grant per unit for developments such as day care centres or community buildings. That is always done at the time the development is built. Sometimes it can be part of the project or might be contributed or joined in with some other project that is taking place. The money is normally drawn down at the time the building is taking place. It is for capital building, not operational costs or whatever as mentioned by the Senator. I have been asked that the records be checked to confirm the situation. Normally, it would be part of the scheme. However, sometimes, if some other group was providing other facilities nearby, the money might be transferred from them. However, it would have been up to the applicants at the time to draw down the 46 times €7,000. They would have been rather foolish if for some reason they did not draw that down, unless it was parked because there was a greater plan for it. I am taking this matter for the Minister of State, Deputy Finneran, but I can ask him to examine the issue and see what the record showed at the time. Normally, that money would be spent at the construction stage, unless it was parked because of some adjoining project under consideration.