Seanad debates

Thursday, 18 October 2018

Update on Rebuilding Ireland: Statements

 

10:30 am

Photo of Fintan WarfieldFintan Warfield (Sinn Fein) | Oireachtas source

I will build on what Senator Mullen said about the Minister of State's comments on vacant housing. When I was mayor of South Dublin County Council, we had the fastest turnaround and the lowest numbers of vacant units in the State. It is estimated that, excluding holiday homes, there are 180,000 vacant units in the State. Perhaps that figure is contested by some but even 10% of it would be greater than the number of new builds that will come on stream next year. These are vacant homes that are well serviced, do not need new schools and have water. There is EU funding for energy upgrades and the turnaround would be a fraction of the cost of a new build. Why else would we do it? It has all of the benefits of urban regeneration and it is socially, environmentally and economically sustainable. Dublin City Council figures from two years ago indicate that there are 4,000 vacant units between the city's two canals that could be used to accommodate 10,000 people. I urge the Minister of State to consider vacancy as a top priority.

There is good reason that last week's budget was dubbed a landlord's budget, with only a 6.5% increase in the capital budget for the Minister of State's Department. A much hoped for housing budget that would have provided for renters and first-time buyers failed to materialise. The total extra capital above existing Rebuilding Ireland commitments was only €80 million. This is despite the Dáil passing a cross-party motion the previous week calling for an extra €1 billion in capital expenditure for housing. Despite the motion having the support of Fianna Fáil, its influence on budget 2019 certainly did not pivot in providing this much required additional investment.

Creating a rainy day fund while 10,000 people, 4,000 of whom are children, are homeless, is a questionable exercise. It is not economically prudent to do so when the economy is failing to provide housing for so many. What is considered a rainy day? Budget 2019 could have been a game-changer for housing. Of the €1.5 billion of new budget measures set out by the Minister for Finance , Deputy Donohoe, that week, just 5% is directed towards delivering social and affordable homes by the Government, which hardly suggests that housing is a priority for the Government. This is highlighted by the figures. The total spend on private rental subsidies is €781.5 million while the total spend on local authority housing is €747 million, which is €34.5 million less. The net result of this will be a tiny increase in the number of social homes provided. The revised 2019 target is now 7,900 homes, up by 490 on the Rebuilding Ireland target, to be built and bought by local authorities.

The Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, claimed in his post-budget press conference that he will deliver 10,000 council homes next year.This seems to be at odds with what is clearly stated on page 114 of the budget expenditure report to the effect that social housing stock will increase by 7,900. Perhaps the Minister of State could clarify the position.

Next year, 19,430 so-called social housing solutions will be delivered by means of subsidised private rental tenancies. The vast majority of those will be expensive, short-term HAP leases. A reliance on HAP for social housing options is not prudent for social tenants or the taxpayer. The alternative is that we move towards a space where our public housing stock is much larger so that when the boom-and-bust cycle changes again, 30% of the system will be insulated from the bust.

While Fianna Fáil lauded its achievements in ensuring the inclusion of an affordable housing scheme in budget 2019, it must be realised that such a scheme, with funding of €75 million, was announced in the previous budget. That €75 million has yet to be spent, despite bids submitted by local authorities. Can we assume that the figure of €89 million outlined by the Minister for Finance last week includes the €75 million from the previous budget that was not spent? If the answer is "Yes", then the increase in the context of delivering affordable housing only amounts to €14 million.

I am particularly disappointed by the lack of any measures that would directly protect tenants and their rights. Proposals to introduce a rent freeze designed to provide relief for renters or a punitive vacant site levy were ignored and no strength was added to the rent pressure zones. Separate from the budget, there is still an absence of regulation in respect of short-term lettings, including in the context of Airbnb, despite the Minister giving a commitment to the Joint Committee on Housing, Planning and Local Government to publish regulations in this regard three weeks ago. An update in this regard would be welcome. There have also been commitments to bring purpose-built student accommodation within the rent pressure zones and to introduce legislation to ban the advertisement of overcrowded and unsafe properties. Those commitments have not been fulfilled. I would be very grateful if the snail's pace at which some of these measures are proceeding could be addressed by the Minister of State.

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