Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I thank the Senator for raising this as it affords me an opportunity to confirm once again the Government's commitment to working with the voluntary and co-operative housing sector to meet the housing needs of the disadvantaged and vulnerable in our society, particularly in the current challenging economic climate. I begin by reflecting on the successful relationship to date between my Department, local authorities and the voluntary and co-operative sector. Since the 1980s, together we have overseen the delivery of 22,000 homes under both the capital assistance and capital loan and subsidy schemes which, I am sure Senator Buttimer will agree, represents a considerable success story by any measure of social housing delivery.

As Senators are aware, there is increasing pressure on the public finances and it is incumbent on all of us to ensure all public investments are effective, efficient and deliver the greatest value for money while meeting a particular social need. In that context, we need to examine options for delivering social housing beyond the traditional approaches of construction and acquisition if we are to continue to meet housing need at the levels expected of us. Although I cannot predict the outcome of the Estimates process, the reality is that capital budgets for next year will come under further significant pressure. This will undoubtedly give rise to some difficult decisions. However, I am satisfied we do have real options that will help us to deliver still high levels of good quality accommodation.

I refer in particular to the new long-term leasing initiative and the rental accommodation scheme which will capitalise on the existing availability of unsold properties in the market while at the same time taking advantage of the fall in rents. These schemes provide local authorities and the voluntary and co-operative sector with an opportunity to provide greater numbers of households with good quality accommodation than would otherwise be possible from our annual investment.

My Department continues to liaise closely with the Irish Council for Social Housing and indeed approved housing bodies themselves to ensure they are well-placed to deliver housing in this new context. Already this year, a number of voluntary and co-operative bodies have received approval in principle for units under the new leasing initiative and efforts are being taken to ensure this process is further strengthened in the coming years. At the same time, the Department is placing renewed emphasis on meeting the needs of vulnerable households and will be focussing capital support on the priority area of special needs provision under the capital assistance scheme in 2010. In that context, my Department is conducting a review of all proposals for CAS projects in the system with a view to identifying the priority projects for which funding will be made available next year.

This brings me to the project raised by Senator Buttimer involving 31 sheltered housing units and community facilities at Fellowship House in Togher, County Cork. I assure the Senator this project is being considered in the context of the overall pipeline of projects designed to provide new accommodation for households with special needs in 2010. I understand the county council, as part of the review I mentioned, has indicated this project has a high priority. Regard will also have to be had to the fit between the proposed project and the overall strategic direction for the accommodation for homeless households, as set out in the Government's homelessness strategy, The Way Home.

Undoubtedly, the provision of accommodation by approved voluntary and co-operative bodies continues to play an integral part in my Department's overall response to delivering on social housing need. I take this opportunity to re-emphasise the Department's commitment to supporting the sector in that context. Obviously our capacity to do so will be subject to the level of resources available to us. However, I am satisfied the new arrangements, such as the leasing initiative I have outlined, represent significant new opportunities for voluntary bodies to meet housing need in the years ahead.