Marie Moloney (Labour)
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I thank the Minister of State for taking this Adjournment debate. Since it relates to her Department, I am delighted that she is present.

A number of houses on the affordable housing scheme have been lying idle in Killarney since 2009. As the Minister of State knows, that scheme has been discontinued for some time, but the houses have remained empty.

The houses were originally only available to applicants under the affordable housing scheme but despite a considerably reduced sale price those concerned still could not access mortgages and made alternative arrangements in respect of their housing needs. The houses were then advertised on the open market at the reduced price but there was no great interest in them.

The Minister of State will be aware, owing to the fact that no new social house building has taken place this year, that the number of people on the social housing list is huge. While I acknowledge announcement of the construction of 500 new houses this year, taken in a countrywide context that is very little construction per county. However, it is a step in the right direction.

The four houses about which I am speaking are ready for occupation and are located in a social housing complex. People on the social housing list in Killarney are angered that they remain unoccupied while so many are in need of houses. They cannot understand the reason they cannot be used for social housing purposes.

I understand that Killarney Town Council has applied to have them redesignated as social housing. I hope that the Minister of State can give me a positive answer today.

Jan O'Sullivan (Limerick City, Labour)
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I thank the Senator for raising this issue. I know the concern she expresses in terms of empty houses is very real. There is no particular proposal with regard to affordable houses. However, proposals from local authorities will be carefully considered. I presume a proposal has been submitted by Killarney Town Council.

Marie Moloney (Labour)
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I discussed the matter with the housing officer at the council who informed me the decision is one for the Department. I assume the Minister of State would be aware of it if one had been submitted.

Jan O'Sullivan (Limerick City, Labour)
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A specific proposal would need to be submitted by the local authority. To the best of my knowledge, a specific proposal has not been submitted. I will have the matter clarified. Another possibility is that of leasing through a voluntary housing body. Unsold affordable housing is often included in the social housing mix. I am not aware of any proposal having been submitted by Killarney Town Council. However, should one be submitted, it will be considered.

On the general issue of affordable housing schemes, the Government announced in its housing policy statement published in June 2011 the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000, while clearly identifying that the priority for Government will be to meet the most acute needs of households applying for social housing support.

Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work. We expect to make announcements in this regard in the near future. These schemes were originally introduced to bridge the affordability gap of the boom years which prevented middle income households from realising their home ownership aspirations. However, affordable housing did nothing to address the underlying problem, namely, market overheating with an unsustainable gap between prices and incomes. As the Senator will be aware, there is currently little or no demand for affordable housing. In recent years the challenge has been to deploy existing affordable stock productively rather than deliver new affordable housing. This includes, where appropriate, its use as social housing stock.

The financial parameters within which we will continue to operate rule out a return to large capital funded construction programmes. None the less, the Government is committed to responding more quickly and on a larger scale to social housing support needs through a variety of mechanisms, including through increased provision of social housing. In July 2011, I announced a three-year funding programme of €100 million to deliver 800 new units of voluntary and local authority owned social housing. A further €50 million provided in the most recent budget for 2014 will be used to fund infrastructural investment, primarily in the housing area and includes €30 million to recommence a State house building programme, €10 million for an unfinished housing estate resolution project and additional funding for housing adaptation grants. Almost 70% of the budget for my Department will go directly to support housing in 2014.

The total housing allocation for 2014 will result in an investment of over half a billion on a range of programmes, which means that funding for housing for next year is effectively maintained at 2013 levels. I am determined to ensure that the social housing programme optimises the delivery of social housing and the return for the resources invested. To achieve this, it is essential that we tailor the use of available Exchequer supports to prevailing conditions and explore the full range of solutions to address housing needs, one of which includes the sourcing of loan finance by approved housing bodies for construction and acquisition.

More than 26,000 units of accommodation are currently managed by approved housing bodies. The Government places approved housing bodies at the heart of social housing provision in the years ahead as Exchequer-funded large-scale capital building programmes are no longer financially possible. I re-emphasise that such programmes have commenced and the Government intends to ramp them up as the finances of the country improve. New social housing provision will rely to a significant extent on revenue-funded housing options such as leasing and on private investment into the sector. We are utilising the approved housing body sector because it can attract external financial investment and will also engage with NAMA to ensure continued delivery of housing units for social purposes.

With regard to affordable housing specifically the review of Part V is now almost concluded and any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of this review. I expect to make announcements in this regard in the near future. I am not aware that any proposal has been received from Killarney Town Council but will seek clarification in that regard. If not, the local authority should make a case to the Department or alternatively seek leasing through a voluntary housing body, which option has been used in respect of affordable housing in other parts of the country.

Marie Moloney (Labour)
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I thank the Minister of State for her reply. I am surprised to hear that the council has not made an application for the houses.

Jan O'Sullivan (Limerick City, Labour)
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I did not say it had not made an application, rather that I am not aware of any such application.

Marie Moloney (Labour)
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I will clarify the matter with the council. I understood it had submitted an application. However, perhaps I am wrong. It is regrettable that these houses have remained unoccupied since 2009. We need to move a little quicker than that given the number of people in need of housing. These houses are large enough to accommodate four families. I acknowledge the volume of resources being made available in respect of RAS and the leasing schemes. However, that is a matter for another day.

As I said, I will endeavour to find out from the council if it has submitted an application and, if so, will communicate with the Minister of State at a later stage.