Written answers

Thursday, 6 October 2022

Department of Housing, Planning, and Local Government

Housing Schemes

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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192. To ask the Minister for Housing, Planning, and Local Government if his Department intends to revise the issued price guidelines for the purchase of turnkey homes in each local authority area following the proposed tax on poured concrete and concrete products; and if he will make a statement on the matter. [49264/22]

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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193. To ask the Minister for Housing, Planning, and Local Government if his Department has been notified of any possible increases in the cost of turnkey, social or affordable housing following the proposed tax on poured concrete and concrete products; and if he will make a statement on the matter. [49265/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 192 and 193 together.

In November 2021 the Government agreed a comprehensive Defective Concrete Block Grant redress scheme. This scheme was designed to support home owners who have been severely affected by issues relating to defective products in the construction of their homes. One of the actions arising from that decision was the development of a levy to offset some of the costs associated with the scheme.

In his Budget speech last week, the Minister for Finance confirmed the levy will be applied to concrete blocks, pouring concrete and some other concrete products. The levy is expected to raise around €80 million a year and will go towards the cost of the comprehensive redress scheme. The levy will be set at 10%, and will be charged at the point of first supply in the State, so ensuring that all liable concrete and concrete products manufactured and/or used here will be liable to the new levy. The levy is to come into effect from the 3rd of April next year. Further detail on the levy, and in particular in regards to the specific products it will apply to will be set out in the Finance Bill 2022 when that is published on October 20th.

Analysis carried out on the levy estimates that, for a typical dwelling, increases in construction costs will be in the range of approximately 0.4% - 0.9% and are subject to range of variables including- dwelling type, design, location, existing site conditions, external works, car parking requirements.

There are a wide range of factors which impact on housing construction costs. My Department monitors these issues, including through the analysis of data on local authority social housing tenders, and prepares Unit Ceiling Costs (UCCs) for new build social housing schemes. These UCCs which are periodically updated and issued to local authorities as a key reference in the development and costing of social housing scheme proposals. There are no specific price guidelines in place for turnkey developments.

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein)
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194. To ask the Minister for Housing, Planning, and Local Government the amount of the €67 million in funding that was announced in Budget 2023 to fund 12,300 grants to adapt the homes of older people and people with a disability that is new and additional funding for 2023. [49271/22]

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein)
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197. To ask the Minister for Housing, Planning, and Local Government when the review of the adaptation grant for older people and people with a disability scheme will be published. [49274/22]

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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210. To ask the Minister for Housing, Planning, and Local Government if the amounts payable under the housing adaptation grants will be increased in view of the significant increase in building costs; when these grant amounts were last revised; and if he will make a statement on the matter. [49392/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 194, 197 and 210 together.

My Department provides funding to local authorities for the Housing Adaptation Grants for Older People and People with a Disability Scheme. These schemes assist eligible applicants living in privately owned homes to make their accommodation more suitable for their needs, with Exchequer funding of €65 million available nationally in 2022. As part of the annual budgetary process the Exchequer funding provision for 2023 has been increased by €2 million to a total of €67 million, continuing the year on year increases since 2014. The maximum grants limits for the scheme are set by secondary legislation, namely, the Housing (Adaptation Grants for Older People and People with Disabilities) Regulations 2007, which were updated in 2014.

Housing for All commits to reviewing the suite of Housing Adaptation Grants for Older People and People with a Disability. Among the areas which the review, currently underway, will consider are the income thresholds, the grant limits, the application and decision making processes, including supplementary documentation required. The review is to be completed by the end of 2022.

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein)
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195. To ask the Minister for Housing, Planning, and Local Government the amount of the €25 million that was announced to support adaptation works to 1,800 existing social homes announced in Budget 2023 that is new and additional funding for 2023. [49272/22]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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My Department provides annual funding to local authorities under the Disabled Persons Grants scheme to carry out works on social housing stock to address the needs of older people, people with a disability or overcrowded situations. The detailed administration of this scheme including assessment, approval and prioritisation is the responsibility of local authorities.

My Department's approach every year, in the first instance, is to allow local authorities complete works up to 65% of the previous year’s allocation in the absence of formal approval to keep this important work going. Following this, my Department will issue a single full year allocation to each local authority, so they can plan, prioritise and implement the programme to carry out the varying works necessary to meet the needs of their tenants. The programme is 90% funded by the Department with a 10% contribution from the Local Authority. The budget provided each year is additional funding.

In 2021, a significant increase in funding was secured for the Disabled Persons Grant Scheme which incorporates Improvement Works in Lieu. This resulted in a total exchequer allocation of €23.7 million. It gave local authorities an opportunity to be approved for funding on all works that could be completed that year. Again in 2022, exchequer funding to the value of €23.6 million was allocated to these schemes based on the request for funding from the local authority sector.

The allocations for the 2023 Disabled Persons Grant Scheme will be announced early in 2023 upon receipt and review of each local authorities work programme.

The allocation and drawdown of funding for each local authority for the period 2011-2021 for the Disabled Persons Grant, which incorporates Improvement Works in Lieu, is available at the following link:

www.gov.ie/en/publication/061cd-disabled-persons-grant-and-improved-works-in-lieu-schemes-allocation-and-drawdown/?referrer=http://www.gov.ie/en/publication/c472d-disabled-persons-grant-and-improved-works-in-lieu-schemes-allocation-and-drawdown-2011-2020/

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