Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I thank Senators Higgins, Ruane and Black for the amendment they tabled. It gives us an opportunity to talk this matter through. I will deal very quickly with some of the questions that have been asked. I will deal with the proposer of the amendment first, however. I genuinely do not believe it is appropriate to set an arbitrary limit, whether it be 15%, 20% or 25%. Senator Cummins put that well. Right now, particularly in our war in respect of the affordability issue, we need to use all the tools and weapons in our armoury to tackle this. I know Senator Casey referred to this and it was discussed in some detail on Committee Stage.

Right now, some local authorities do not have the requisite land banks. It may be more appropriate that while they are building their own, they should be able to purchase properties out there and make those properties affordable. I believe that is also a good use of our funds.

I will get to Senators Warfield's and Boyhan's questions in a minute. First, I believe it is opportune to go back a little bit and tell Senators that I have instructed local authorities to buy additional land now to increase their land banks. We have changed how our local authorities are going to be reimbursed in the context of the purchase price. A complaint local authorities, particularly the smaller ones, had was that it took them a long time to get that money back into their accounts, which had a big impact on their capital budgets. That has been changed now. I want our local authorities to be the main deliverer of social and affordable homes, and they will be.

Consider affordable housing under the serviced sites fund, however, which we are going to allow flexibility on with the passing of this Bill. The serviced sites fund is a very good concept. It is conceptually excellent and many homes are planned within it that have not delivered on yet. We need faster delivery for our people. That is why the open market dwelling option, where appropriate, should be in place. To directly answer the question, effectively, that is where a local authority, in this instance, will actually purchase a new home or an additional home within an existing estate. It may be going above the Part V provision that is in place for 10% social housing. With the passing of this legislation, there will be provision for 10% affordable housing. It may be appropriate to go further on the affordable side to buy more. The affordable fund is currently the serviced sites fund. Under the Housing for All plan, however, we would use that fund to take the equity stake to reduce the price in that open market dwelling. The vast majority of these homes, however, will be delivered through our own local authority direct build affordable housing, the LDA and our enhanced Part V provision on new dwellings. We will also have our shared equity arrangements in place, however.

I believe this specific amendment would put in place an arbitrary limit. It could impose an unintended constraint. I visited local authorities, particularly in the Border and midlands area, where a big issue is that the only homes being built at all right now are public homes. There is no private market whatsoever. People will be aware of counties where a small amount of building is taking place. Even with a 15% cap, we could reach that level in no time. The measures included in this Bill are supply side measures, which will stimulate supply. As we move on, these things will evolve and the vast bulk of our homes will be delivered through the State mechanisms to deliver affordable homes. I will not, therefore, be accepting this amendment.

Senator Burke asked a number of questions about the link between this Bill and the Land Development Agency Bill 2021. The definitions within the Affordable Housing Bill 2021 will be transposed directly into the Land Development Agency Bill 2021. Under the latter Bill, I am increasing the proportion of affordable and social homes up to 100%, particularly in our two main cities of Dublin and Cork. That will, therefore, be 100% social and affordable housing. We are going to bring in a 50% base for affordability on all LDA sites, although this relates specifically to affordable housing delivery by our local authorities. In some instances, there will be a requirement or an opportunity to buy new homes on the market.We can then reduce the price by using our affordable fund and putting that in as an equity stake or taking an equity stake in that home. The local authority would take it on behalf of the State.