Seanad debates
Tuesday, 18 June 2013
Housing (Amendment) Bill 2013: Second Stage (Resumed)
4:55 pm
Jan O'Sullivan (Limerick City, Labour) | Oireachtas source
I thank all of the Senators on all sides of the House who participated in the debate. I thank them for their support for the Bill.
A number of issues were raised. Generally, there was a positive response to a few developments, one being the move towards harmonisation. Senator Aideen Hayden described the 40 shades of the differential rent scheme across the country. We are trying to move towards a system under which one will pay in accordance with the family's income.
On the specific issue raised by Senator Denis Landy, that of transition, there are differences across the country, which are significant in some places. We envisage that the transition period towards more or less a harmonised rent across the country will probably be three years. Rent will be set more or less in accordance with the size of the family and their income.
We will be moving responsibility for the long-term rent supplement scheme to the local authorities and what we propose will facilitate this. It would be very difficult for the Department of Social Protection to harmonise 40 rent schemes. I believe there are more than 40 around the country. We want to see a relatively smooth transition towards what will be more or less a standard payment, again depending on the size of the family. This also facilitates removing the poverty trap referred to by a number of Senators. A person is in danger of losing his or her entire rent supplement if he or she finds work. That clearly is not a phenomenon we want to support in any way. We want to facilitate a person in being able to take up employment without having to worry about not being able to pay for housing. Overall, we want to move towards a harmonised, fair system that will work for everybody.
A number of other issues were raised. A number of Senators referred to the supply of housing and waiting lists. It is a broader issue than the Bill is covering. There are more than 100,000 people on waiting lists across the country. I suggest to the Fianna Fáil Senators, in particular, that the list did not start today or yesterday; it was building up right throughout the boom period. When the country had money we did not build as many houses as we should have. It is something with which we are trying to deal.
One of the reasons the leasing scheme was embraced was because it was a way of providing housing fairly quickly for people in need of it. It carries ongoing costs, therefore it is kept under review. Ideally, I would love to build local authority houses but unfortunately I do not have the money to do so. We do not have the capital budget. Any construction has to be accounted for and is a significant cost. I will move as soon as I can to have some part of the delivery of social housing under construction. We currently have limited construction which is largely confined to people with the greatest need, such as those with disabilities, older people, etc. I would like to move, as soon as I can, to a more significant construction programme. At the moment, unfortunately, we do not have the money to do as much as we would like.
Senator Landy referred to the stimulus package. It comprises €50 million over three years to address 25,000 of the least energy efficient local authority houses around the country. We are in discussions with local authorities on the houses which need attention. The programme will start this year and continue into next year and the year after. It will also help to address fuel poverty for many households around the country which are currently spending a lot of money on heating what are often fairly draughty, cold houses. It will make a real difference, as well as helping the construction industry to get moving.
The issue of NAMA houses was referred to by Senators White and Ó Domhnaill, in particular. We have speeded up the process. I accept it was slower than it should have been. It has now set up a special purpose vehicle which is assisting in moving the process forward. Over 100 houses came over the line in the first few months of this year. I will be able to give the Senators better figures at the end of the years, but things are moving faster than they were.
Senators Keane and Ó Domhnaill referred to adaptation grants. I am reviewing them because we want to make sure the money we have available is put to the best possible use. There are three different types of grants, namely for disabled, mobility and older persons. The averages are a lot lower than the upper limits. We want to see whether we can spread the money around to provide more benefit to more people. There is a limited amount of money and we are limited in what we can spend on any scheme. A review is ongoing and we hope as a result we will spread the money as well as we can. It is a good scheme which allows people to stay in their homes and not have to stay in hospital or nursing homes for longer than is necessary. We want to make sure we get the best possible value for money.
Senator Hayden referred to flats and apartments. A scheme currently operates but not many purchases are made under it. It merits a review to determine whether it can be more favourable.
A number of Senators raised the issue of a tenant purchase scheme. The end of this month is the closing date for completion under the old tenant purchase scheme. The new incremental purchase scheme will, as Senator Hayden said, allow people who are not currently tenants to buy properties. To that extent, it will be open to more people than previous schemes have been. It will be much more related to income than length of time spent in a property. We feel that is fairer and will allow people to purchase properties.
We want people to be in a position to purchase local authority houses where they have the means to do so.
This is a short, technical Bill, with many of its provisions relating to various aspects of local authority housing provision and to the Bill we will bring forward later in the year which will introduce the housing assistance payment scheme. It is my intention that the heads of that Bill will be published before the summer break. We will work on the text over the summer and debate it in the autumn. I hope I have covered all the points Members raised.
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