Social and affordable housing
Ó Caoláin pressed the Government to adopt the NESC recommendation for 73,000 additional permanent local-authority homes and challenged its record on social housing, waiting lists and tax incentives contributing to rising house prices. The Taoiseach cited increased housing expenditure, construction and affordable-housing initiatives, and said the NESC report was informing Government decisions; the Chair closed Leaders’ Questions by reminding members of the time limit.
There has been no debate in this House on the report from the National Economic and Social Council, Housing in Ireland: Performance and Policy, published six months ago. I am not aware of any response from the Minister for the Environment, Heritage and Local Government to the recommendations of the NESC report. Will the Government accept and implement the recommendation that there should be an increase in permanent social housing units, owned and managed by local authorities, of the order of some 73,000 units between 2005 and 2012? This is a key recommendation of the NESC. Will the Taoiseach note that the NESC report cites evidence from other states showing that only through increased social housing provision can the housing crisis in this State be seriously tackled and also the terrible tragedy of homelessness for so many?
Does the Taoiseach accept that Part V of the Planning and Development Act is failing to deliver social and affordable housing which I have acknowledged it has the potential to deliver? Does the Taoiseach recognise that the subsequent Planning and Development (Amendment) Act 2002 allowed developers to shirk their responsibilities under the original legislation and through the giving of money, land or units on other developments they are able to avoid the responsibility of providing social and affordable houses in key developments? Is the Taoiseach aware that the Department of the Environment, Heritage and Local Government, indicated there were only 390 units — I ask the Taoiseach to take note of that figure — of social and affordable housing provided under Part V of the Planning and Development Act up to the end of September 2004?
Has a cost benefit analysis been carried out on the transfer of land, the proposed swap of land in Government ownership with developers in exchange for so-called affordable housing units? What has happened to the Government's so-called commitment regarding the creation of integrated communities and a living city? The Taoiseach is also a Dublin Deputy. It is clear that in the heart of Dublin——
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——the real effects of what I have outlined are biting deeply into heartland communities.
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The Government was very glad to receive the NESC report and also the PricewaterhouseCoopers report and the other work done on housing. As the Deputy knows, the Government rate of building social and affordable housing and housing is higher than anywhere else in the modern world. It stands at 20 houses per 1,000 people as against a rate of three houses per 1,000 people in Britain and five in the United States.
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Some 30% of all houses in the State are new houses which is an enormous achievement. The Government is delivering strongly on social and affordable housing programmes with 13,000 benefiting under the broad range of social and affordable housing programmes in operation since 2004. Record levels of funding are being allocated to local authorities for their housing programmes this year. The total Exchequer provision for both capital and current expenditure for 2005 is €1.3 billion which is 20% over the provision figure for last year. This represents a seven-fold increase in the past seven years. I know the Deputy will be very supportive, as I am, of such investment.
The Deputy is correct in that changes were made in Part V. The supply of social and affordable housing has been boosted by the implementation of Part V. It took some time to implement the provisions of Part V and there were changes and delays following much lobbying in the House. Whether or not those were justified, I accept delays occurred but it is up and running. It is envisaged that more than 11,000 units will be delivered from the various affordable schemes between this year and in 2007. The needs of a further 6,000 households are expected to be met through other social housing measures, including houses completed by the voluntary co-operative sector. The long-term housing needs of approximately 5,000 current recipients of rent supplements will be addressed through new rental accommodation schemes.
The local authorities are also producing five-year action plans for social and affordable housing programmes. The primary aim of these plans is to ensure housing is delivered in a manner which breaks the cycle of disadvantage and dependency which still exists in some areas and I accept the point made by the Deputy on that matter.
The Deputy asked about the transparency of the land swaps. The Harcourt Terrace site was the subject of an initial feasibility analysis which concluded that given its present zoning it would only realise about 30 apartments on site in addition to some commercial developments. The analysis found that its maximum value would be extracted by facilitating a commercial development focused on the owner-occupied market, for example, a law practice for which demand is strong in that area. The recommendation was to consider an exchange of the site as a pilot scheme to test the Government's fast growing approach to early delivery of affordable units. The net consideration for the site was determined in the analysis at €15.6 million which is €2.6 million over its pre-sale valuation of €13 million. This equates to approximately €39 million per acre for that area and reflects the top of the range for sale prices achieved in the city centre. Dublin City Council acted as project managers for the site. Sixteen bids were received on an open tender and Durkan Homes was identified as the prime developer from a short list of three bids.
The advantage is that rather than having a site which would have required the State to take considerable years to develop — it takes four years to complete a building project on a site — the State was enabled in a matter of months to go to the market and have 193 apartments. One hundred and forty families will be in their apartments by Christmas as a result of this decision and 53 more early in the new year, rather than having to wait for the longer process. The Government has now made six other sites available. Any reasonable person would agree this process is a fast-track approach. I accepted the point made in the House on many occasions. It is a fair point and it was raised by Deputy Rabbitte many times. I am here again answering questions from Members because we have effectively done things, as is always the case. The Deputy asked if a proper feasibility study was carried out and my reply has shown it was.
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I thank the Taoiseach for his reply. As this is the last Leaders' Questions of this term, the House should deal with the issue being raised, which is social and affordable housing. The Taoiseach refers to the building programme in total which includes private building which we know is currently at an unprecedented level. However, that will not address the focus of my question which is the 50,000 housing units for people who are still on local authority waiting lists throughout this jurisdiction. When the Taoiseach refers to a cost benefit analysis regarding specific cases, under any cost benefit analysis there would be a greater return for this State if the lands were given to local authorities rather than in swaps with private developers.This is what is needed. What of the NESC recommendation in respect of a tax on second homes? Many of those new homes in that private sector area are being bought by investors and property speculators, people who are buying second and subsequent homes——
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——only to become landlords and rack-rent landlords as is often the case.
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Is it the Government's intention to act on that recommendation of the NESC? What is the Taoiseach's position in respect of the continuation of section 23 tax relief when clearly it is contributing to ever spiralling house prices particularly in the city of Dublin where it is having a devastating effect on the potential of young couples to aspire to first-time home buyer status? It is having devastating consequences. Centre city communities are being ravaged. Those who have lived generationally together are being forced to move out to suburbia and into far distant counties, including my constituency. There is clear neglect. As the Taoiseach said yesterday, it is time he lifted the telephone and talked to his brother in terms of his portfolio responsibility.
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The only reason I outlined to the Deputy the transparency in the system is that he said he wanted to ask me two specific questions, and that was one of them. In that respect, I am sorry if I answered his question.
On the issue of social and affordable housing, we are acutely aware of the need for such housing. That is why we are putting approximately €2 billion a year into building the record number of houses we are now providing. In addition, we are removing the old slums in the heart of the cities, where people lived close to each other because there had no alternative as there were packed in together, and redeveloping them.
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We are doing that in Cherry Orchard, Ballymun, Oliver Bond flats and estates throughout the inner city. We are providing new homes and housing under major programmes.
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The Taoiseach has cited instances of which I know. What is being done in regard to the Oliver Bond flats?
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The Deputy mentioned the inner city. Part V of the legislation enables local authorities to provide houses in areas where they would not have been able to provide them previously, and that arrangement is working. In most of the new schemes being built the local authorities have successfully negotiated that a portion of the units will be allocated to tenants on the list. This is very helpful and is happening in respect of every development.
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If the Taoiseach wants to fast-track matters, he should adopt the recommendations of the NESC report.
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——in terms of provisions on foot of decisions we have made. The announcement last week of the establishment of the Affordable Homes Partnership under the 1971 Act is designed to pull together the four local authorities in Dublin——
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That is for the developers and speculators.
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What is being done to provide social housing?
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This is proving to be highly successful and we will continue in this direction in the months and years ahead.
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For the benefit of the House, I point out that we went 18 minutes over time on Leaders' Questions. The Chair requests all leaders before the autumn to try to find a way of living within the Standing Order which provides for seven minutes per question or the Chair will have to find a way to ensure this.