Clare Daly (Dublin Fingal, Independent)
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201. To ask the Minister for Housing, Planning, Community and Local Government when the last value for money review into the relative cost effectiveness of rent supplement and other private rented social housing schemes versus direct public provision of social housing was completed; the outcome of that review; and if he will make a statement on the matter. [33478/16]

Simon Coveney (Cork South Central, Fine Gael)
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It is a clear priority of the Government to maximise delivery of social housing to cater for the greatest level of need, while also achieving value for money. The provision of social housing is carried out by local authorities and Approved Housing bodies (AHBs) through a range of delivery methods, including construction, acquisition, leasing and other approaches, which allow local authorities, as housing authorities, to respond flexibly to meet local demand and operate within local property circumstances. The operation of the rent supplement scheme is a matter for my colleague, the Minister for Social Protection. The Government’s Rebuilding Ireland: An Action Plan For Housing and Homelessness published in July 2016 recognises the need to significantly increase the level and scale of supports available to those whose circumstances mean they need State help in meeting their housing needs. The Action Plan allows for a broad range of flexible delivery mechanisms including an accelerated and expanded social housing construction programme. The Action Plan sets an ambitious target to deliver 47,000 units of social housing in the period to 2021, while at the same time making the best use of the existing housing stock and laying the foundations for a more vibrant and responsive private rented sector. Of the 47,000 units-

- 26,000 will be exclusively built as social housing;

- 11,000 will be acquired by Local Authorities and Approved Housing Bodies from the market or the Housing Agency; and

- 10,000 will be leased by Local Authorities and Approved Housing Bodies.

I have secured €5.35 billion exchequer investment to deliver these 47,000 new social housing units over the period of the Action Plan. This €5.35 billion investment comprises some €4.5 billion in capital funding and €844 million in support of programmes funded from current expenditure, specifically the Social Housing Current Expenditure Programme (SHCEP). This significant capital investment will assist local authorities and AHBs to continue their re-engagement in substantial social housing construction activity.

A number of financial and economic studies carried out support the rationale for the provision of social housing through mechanisms such as the leasing and renting of privately owned accommodation. In 2010, the Comptroller and Auditor General (C&AG) published a specific chapter (Chapter 23 of the C&AG's 2009 Annual Report) relating to the leasing of social housing. In addition, a financial appraisal of the long-term costs of leasing in comparison with other social housing delivery options, commissioned by my Department was carried out by the Housing Agency in 2011. Both the C&AG findings and the study commissioned by my Department broadly indicated that leasing represents good value for money in social housing provision when compared to direct market acquisition or construction of units. A copy of the Housing Agency report entitled Comparative Financial Appraisal of the Projected Long-Term Costs of Social Housing Delivery Mechanisms is available on the Housing Agency’s website at: .

The introduction of the new Housing Assistance Payment (HAP) was underpinned by an economic assessment which was submitted to Government in 2013 and informed the Government’s decision to initiate the HAP scheme at that time.

I continue to keep all of the social housing delivery mechanisms under review to ensure that they remain relevant and are meeting the needs of citizens in a cost effective way.