Catherine Murphy (Kildare North, Independent)
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Question 406: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that, due to the continuing price increases in the housing market, the stock of social and affordable housing units available to local authorities through the provisions of Part V of the Planning and Development Act 2000 is being threatened as local authorities can no longer justify or afford to spend the prices negotiated by developers; if there are plans to introduce measures which will ensure that local authorities are not priced out of the housing market by private sector buyers in order that the availability of social and affordable housing is not compromised by rising house prices; and if he will make a statement on the matter. [21701/06]

Noel Ahern (Dublin North West, Fianna Fail)
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Part V is an important and growing supply mechanism for increasing our stock of social and affordable homes. The manner in which local authorities avail of Part V arrangements for the provision of such housing is determined by them based on the social and affordable housing needs identified in their housing strategies. Where units are being transferred, the method of calculating their cost to the local authority is set out in legislation. While my Department has not refused to sanction houses which are to be transferred to a local authority in accordance with an agreement under Part V, it would be concerned to ensure that any such agreement represents value for money.

In some instances a local authority may agree to use a mixture of the options available to secure a Part V agreement. In the particular instance referred to in the Question, this involved a combination of a transfer of a lesser number of units together with a financial contribution. This allows the authority to reduce further the sale price of the units to meet the financial requirements of the applicants on its affordable housing list. Agreements of this nature should ensure the delivery of social and affordable units at affordable costs, notwithstanding any further increases in house prices.

I am confident that Part V will play an increasing role in the delivery of social and affordable housing in the future. However, it is not intended that Part V should be the only mechanism for the provision of social and affordable housing. The main local authority housing construction programme, together with the voluntary and co-operative construction programme and the various affordable programmes, continue to be the major contributors to the national social rented and affordable housing stock.