I move:—
That a sum not exceeding £2,747,160 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending the 31st day of March, 1951, for the Salaries and Expenses of the Office of the Minister for Local Government.
Deputies will observe from the published Book of Estimates that the total net amount required in the Vote for my Department for the current financial year is £4,382,160. The total net amount, including Supplementary Estimates, provided for the last financial year was £3,223,100. There is thus a net increase of £1,159,060 on last year's Vote. The increase is easily explained. There are only two main items accounting for it: (a) an increase of £585,000 in the amount being made available for grants to private persons, local authorities and public utility societies for the erection or reconstruction of houses; and (b) £500,000 additional for the financing of schemes under the Local Authorities (Works) Act, 1949, this being the first full year in which the provisions of the Act will operate. There is also an increase of £51,655 in the growing amount required to make provision for contributions towards the annual loan charges of local authorities in respect of housing schemes and an increase from £20,000 to £50,000 in the provision being made for grants for reserved houses for newly married couples.
As regards local authority housing, I have to report another year of progress. During the past financial year 5,299 houses and flats were completed by local authorities as compared with 1,871 in the previous year and 729 in the year before that. The record of housing works in progress by local authorities is equally satisfactory. At the end of March last 10,527 houses were in course of erection as compared with 8,193 in March, 1949, and 3,816 in March, 1948. All the indications are that local authorities will achieve a figure of not less than 7,000 completed dwellings in the present financial year.
The number of dwellings completed in Dublin City during the year was 1,574, which is more than double the output of the previous year. Houses under construction for the corporation in March, 1950, numbered 3,591 as compared with 2,759 in March, 1949.
When introducing the Estimate for my Department last year I referred to the serious obstacle in the way of a greater rate of production of houses which was presented by the inadequate supply of skilled craftsmen, such as carpenters, plasterers and others associated with the finishing of houses. I am happy to say that a considerable improvement has been effected in the course of the year under review. The number of skilled operatives engaged on local authority housing in March, 1950, was 5,915 as compared with 3,664 in March, 1949. This represents an increase of 61 per cent. in the number of skilled workers and has been brought about largely by the efforts of local authorities in expanding activities by direct labour and in the creation of a general atmosphere calculated to attract workers to their areas by publicising the extent of the programmes which are on hands and which are contemplated. I have consistently supported these local efforts and given the widest possible publicity to the importance of the national housing programme and the large measure of continuity of employment which the various planned programmes will afford to workers. I do not maintain, however, that the shortage of skilled workers of all types has been completely met everywhere. Local authorities in some areas still experience some shortages in the finishing trades. I have, however, every confidence that the remaining difficulties in these respects will be overcome by careful planning of pending programmes. Unskilled building workers whose contribution to the housing drive is so valuable, and, at the same time, so unostentatious, were employed in increasing numbers also during the year. The number engaged in March was 7,040 as compared with 4,689 in the corresponding month last year.
As regards the financing of local authority housing schemes, in addition to the provision of subsidy towards loan charges which amounts this year to £757,800 and grants for reserved houses and for extra accommodation where a member of a household is suffering from pulmonary tuberculosis, it is proposed to provide a sum of £3,200,000 in the Transition Development Fund for the purpose of making capital grants in reduction of the capital amount which the local authorities have to borrow for their own housing programmes during the year. Thus, the system of contributions towards loan charges and the provision, at the same time, of capital grants is being continued in the present year. A general review is, however, being made of the working of this system with a view to the unification, if possible, of the two forms of financial assistance. For this purpose, statistical information is being compiled on the various systems of housing finance in operation before 1932, from 1932 to 1945 and since the creation of the Transition Development Fund.
I indicated last year that the question of standardising subsidies is closely allied with that of housing costs and that it would be difficult to formulate a new system of housing subsidy until a much greater degree of normality was achieved in the matter of costs. I am glad to say that there is now greater evidence of a tendency towards stability as regards the upper limits of cost and, indeed, a tendency for contract prices to drop. The improvement in the supply of skilled labour and of materials; keener competition by contractors and the influence of direct labour building have all contributed to these developments. Current costs are, however, still very high. Contract prices for unserviced labourers' cottages, including site works, range from about £725 to £1,000 a cottage, while for serviced urban houses, including development cost, the price per house is between £1,100 and £1,400. A severely critical attitude is being maintained towards tenders submitted to local authorities and every effort is being made to ensure that good value is got for the expenditure involved. In the course of the year local authorities were urged to take every possible step towards reducing prices and it has been intimated that tenders in excess of a reasonable maximum should be rejected.
There have been significant developments during the year in the more general acceptance by local bodies of the principle that rents should bear some relation to the ability of tenants to pay. Such a system has been in operation for many years in Cork County Borough and it has now been adopted in the County Boroughs of Dublin and Limerick and in 14 other areas. I have been at pains to impress on local authorities that there is a statutory obligation on them to select tenants on the basis of need for accommodation rather than with regard to their ability to pay rent. This duty cannot be avoided, in view of the clear provisions of the Acts in regard to the classes of applicants who should receive priority in the allocation of houses.
Once this principle is accepted, the question arises of the better-off families who, because of their qualifications and need for accommodation, are given new houses, being required to pay a rent according to their ability to pay, within the upper limits of a pre-determined economic rent. The general adoption of this system would ensure that in applying the State grants and subsidies and the local authorities' contributions from rates, a periodical review would be made of the means and needs of each family. The circumstances of a household will naturally alter from time to time. Tenants with large families of young children have many demands on their resources and often cannot be expected to expend more than a certain recognised proportion of their earnings on rent. When the children grow up and begin to earn, the financial position of that same family can alter very much for the better within a few years.
The capacity to pay varies, therefore, not only as between one tenant and another but also according to the circumstances of a particular household, from time to time. In the larger urban areas, particularly, the diversities in family income offer a wide scope for the adoption of this renting system.
A sum of £1,635,000 is included in the Estimates for grants to persons and public utility societies in respect of the erection and reconstruction of houses. This is the largest amount which has ever been provided in one year for this purpose. It is provided to keep pace with the very marked expansion of grant-aided private building which has occurred during the last financial year. On 1st April, 1949, 7,864 allocations had been made, of which 4,692 represented grants for new houses and 3,172 for reconstructions. Of these allocations, 746 had been fully paid during the year and 1,179 partly paid. On 1st April last the allocations had increased to 16,362. Of these, 10,282 were for new houses. Grants had been fully paid in 4,159 cases and partly paid in 4,175 cases. A total amount of £1,049,882 was paid out in respect of private building or reconstruction grants during the financial year 1949-50 and the provision now being made in the current Estimates represents an estimated 60 per cent. increase over last year's expenditure. It will be observed from a footnote to the subhead I (3) containing this provision, that issues in excess of £414,000 will be conditional on the enactment of amending legislation. This refers to the statutory aggregate provided for under the 1948 Act, as extended, which will require amendment by law before grants in excess of the balance remaining within the statutory limit can be exceeded. A Bill to give effect to this provision has been introduced.
This review of the position and prospects of the housing drive will, I hope, convince Deputies that the present financial year is likely to produce results in the output of completed houses by local authorities and private enterprise which will reach, if they do not surpass, the highest figures ever previously attained. The latest figures show every sign that this very favourable record will be achieved. In the three months ended 31st March last, over 1,900 houses were completed by local authorities and progress at this rate would achieve an annual output considerably in excess of the pre-war record. Between 3,000 and 4,000 new houses are expected to be completed by private enterprise. This brings the total target which we have now in mind for the year to about 11,000 houses, both local authority and private, for the whole country. The total output achieved in the last three years by local authorities and private enterprise shows the enormously accelerated rate at which the drive has gone forward. For 1947-48, the total was 1,502; for 1948-49, it was 3,296; and for 1949-50, it was 7,966.
I have nothing but praise for the activity of the interests, both public and private, which have contributed to this great recovery in building output within such a short period of time. Local authorities and local officers throughout the country have, with very few exceptions, responded wholeheartedly to the drive for solution of the housing problem, so that in some areas the main requirements have already been, or will shortly be, met. In the larger urban areas, the programme will take a longer period to implement, but in all these areas it is well on its way. As Dublin represents the hard core of the national housing problem, I should like to commend in particular the spectacular energies and notable success of the housing authorities in Dublin City and County, including the borough of Dún Laoghaire, and the help and encouragement which is given to these authorities by the Dublin Housing Consultative Council.
The administration of the Town Planning Acts was continued during the year as in previous years, that is to say, the main attention was concentrated on interim control and the deciding of appeals made by interested parties. The number of appeals submitted to the Minister in 1949/50 was 226 as compared with 228 in the previous year.
There has been a growing interest manifested in the problems presented by the steady increase in building in Dublin City and the surrounding areas. Officers of my Department have had consultations with the city manager and his staff on these problems. A consistently rigid attitude is being maintained in opposition to any large scale building developments in the green belt area and effective efforts are being made for the co-ordination locally of all forms of specialist advice as regards building both by the housing authorities and private persons in the areas scheduled for residential purposes. The organisation being aimed at is intended to achieve a complete co-ordination of policy under the Town and Regional Planning Acts, under the administration of the building bye-laws and under the Housing and Small Dwellings Acquisition Acts. Activities under the latter Acts are also closely associated with the administration by the Department of Local Government of the schemes of grants to subsidise the erection of houses by public utility societies and private persons.
Deputies will recall that for the year 1949-50 a substantial portion of the Road Fund was made available for the first time by way of special improvement grants for county roads. The amount allocated was £1,200,000 out of a total of £2,343,518 for county council road works as a whole. The reports available on the operation of the new system indicate that substantial improvements were effected on various county roads by the aid of the grant and that a continuance of the same system for the current year is warranted. County councils have, accordingly, been advised that the grants for main road improvement, county road improvement and the percentage grants for ordinary works on main roads would be continued in 1950-51 on the same basis as had obtained in 1949-50. The estimated income of the Fund for the year is £2,600,000 and the allocations, including a provisional allocation for county boroughs, amount to £2,550,000. In addition, outstanding commitments from previous years to be met in 1950-51 amount to £750,000. To meet total charges on the Fund, further borrowing will, therefore, be necessary, within the margin of the total additional borrowing powers conferred by statute in 1948.
During the year I had a circular letter addressed to road authorities arising out of various questions raised from time to time regarding the production of road materials by way of contract and the methods by which road authorities should themselves produce such material. I pointed out that it was essential that the best possible value should be obtained for the money spent on roads and that each road authority responsible for a substantial annual programme should provide an engineering organisation, equipment and personnel sufficient to enable them to carry it out effectively. This policy does not exclude the purchase of material or the hire of machinery in exceptional circumstances, nor the carrying out by contract of certain road works, particularly those of a specialised or abnormal nature.
I drew attention to the fact that where costs of direct labour work, either in the production of materials or in actual work on the roads, were higher than in the case of similar contract work, the excess must be due to inefficient machinery and methods. I accordingly recommended the production by up-to-date machinery of materials at central quarries and sandpits and the use of lorries where other forms of transport would be uneconomic or impracticable.
I am glad to be able to report that the first programme of works undertaken under the Local Authorities (Works) Act between the autumn of 1949 and March, 1950, has proved a very great success. A sum of £1,250,000 was voted by the Dáil for the purpose of making grants to local authorities for the carrying out of works under the Act. The local authorities selected schedules of works and their proposals were then considered by the Department. The grants were confined generally to works capable of being completed by the end of the financial year. Practically the full amount of the voted provision was expended in the year. The number of men employed rose from 6,000 in September, 1949, to 13,850 in March, 1950. In the latter month over 26,000 men were employed by county councils on road works and Works Act schemes as compared with about 19,000 men engaged on road works in the same month in 1949.
A further programme of schemes under the Act is being provided for in this year's Vote where, as I have said, an increased provision of £1,750,000 has been made for the purpose. After making provision for the payment of the balance of last year's grants and for grants for urban authorities, I have been able to notify county councils generally of their grants for the present financial year. They total in all approximately £1,600,000. In apportioning this sum all the relevant factors were taken into account, such as the availability of labour, last year's performance and this year's programmes.
In connection with the preliminary compilation of schemes for execution in the current year local authorities were advised that, in selecting works and in determining the time for their execution, regard should be had to the labour position in the locality, the demands of other services such as road works, agriculture, etc., the need for avoiding, as far as possible, sharp fluctuations in employment, and the weather conditions necessary for good results.
The number of vehicles of all classes under current licence in August, 1949, was 122,536, as compared with 108,002 such vehicles in August, 1948.
The Department of Local Government, in conjunction with the National Film Institute and the Garda Síochána, has continued to arrange for the production of various forms of road safety propaganda, including the display of road safety films. Similar activities are projected for the current financial year.
I referred last year to the very large programme of waterworks and sewerage schemes which is pending in most counties and in some of the urban districts. So far as the county programmes are concerned, I indicated the need for adhering to a procedure whereby works should be undertaken in accordance with a planned programme over successive years according to the order of their relevant urgency. The extent of the activities of local authorities in resuming the implementation of their programmes has shown a strong upward trend during the year. A larger proportion of the schemes are being gradually brought to final planning stage. The number of schemes authorised during the year included 70 major waterworks and sewerage schemes, involving a total expenditure in excess of £1,000,000. Of this sum, over £400,000 was met by way of grants from the Emergency and Employment Schemes Vote and the Transition Development Fund.
The programme of 70 schemes so undertaken was a big advance on the previous financial year when 33 such schemes were initiated. The programme for the current year will be approximately of the same dimensions as that undertaken in 1949-50. If progress is maintained at this rate in subsequent years the larger portion of the accumulated sanitary services programme should be undertaken within the three subsequent financial years with the usual time lag of one or two additional years to complete the contracts entered into. This would represent a very satisfactory position as regards the most urgent schemes but it would by no means exhaust the demands from many further areas which will be taking their place in due course in the programmes of subsequent years.
Since the 1st April, 1948, a comprehensive series of inspections of all fire-fighting services throughout the State has been made by the Department's fire adviser. Recommendations for the improvement of the fire-fighting services have been conveyed to a number of local authorities. The recommendations are generally based on a minimum outline fire-fighting service organised on a county basis. The office of chief fire officer of a county or county borough has been approved as a whole-time permanent and pensionable post. In some counties there has been a reluctance to appoint a chief fire officer. I would like now to reiterate what has been pointed out in correspondence with the authorities concerned that no appreciable measure of success can be achieved in the matter of securing even a minimum fire-fighting organisation in the absence of the continuous control, planning and supervision which a chief officer is intended to exercise. Draft fire standards were issued to local authorities last year and have now been published in book form. I hope that perusal of the standards will bring home to all concerned the very considerable tasks which lie ahead with a view to making places of public resort and institutions more secure against fire risk.
Official contractors have been appointed for the supply of approximately 3,000 commodities during the current contract year. Many commodities which were off the official list for some ten years are again being made available at competitive prices. There is also evidence of increases in the number of commodities of Irish manufacture for which it is now possible to obtain satisfactory tenders. There was a further marked increase in the number of applications for appointment as official contractors from provincial merchants.
The prices quoted by contractors are not yet showing any general tendency to fall. Reductions have taken place in the prices of a number of essential commodities but these are offset by increases in others.
Last year many Deputies commented on the upward trend of rates and there were some forecasts as to further increases in the burden on ratepayers. I am glad to say that these forecasts have proved to be largely fanciful. The simple average of rates struck by county councils for the year 1950-51 is just a fraction of a penny less than that for the previous year. In round figures it may be said that the average rates for the two years are the same, viz., 23/2 in the £.
The county rate collection for the past year was very satisfactory, 97.5 per cent. of the total warrant for the year having been collected at the 31st March, 1950, as against 97.2 per cent. on the corresponding date last year. I trust that the public-spirited reaction of ratepayers generally as shown in the fine record of rate collection for the past year will continue to manifest itself. The increases which have taken place in the rates in recent years are, in my view, not symptomatic of extravagance or of ill-considered expenditure but rather a reflection of the great increase in essential local activities which has taken place, combined with the general post-war increases in costs generally.
I have had occasion frequently to point out, both in this House and elsewhere, that the factors to which I have referred have led to substantially greater increases in the expenditure from the Exchequer on grants made available to local authorities in relief of rates on land and towards the cost of other services. This tendency was referred to by the Minister for Finance in his Financial Statement for the current year, where he pointed out that since 1938/39 Government grants to local authorities have increased by over £10,000,000, whereas rates have risen by £4.6 million.
The total loans sanctioned for purposes other than housing for the year amounted to £1,184,782 as compared with £871,601 in the previous year. The increase reflects increased activities of local authorities in respect of sewerage schemes, vocational education, construction of hospitals, county homes and dispensaries, etc. Housing loans sanctioned in 1949-50 amounted to £11,833,234 as compared with £8,361,258 in the previous financial year.
In the course of the year under review, the general administration of local authorities was, on the whole, very satisfactory. I have visited a large number of local administrative units, mainly in connection with the opening of new housing schemes, but I invariably take the opportunity of inquiring into the general conditions and hearing the views of local representatives and others regarding the needs of the several districts. I have experienced everywhere a very full degree of evidence of the willingness of local representatives and local officers to co-operate in the major schemes being promoted under my supervision.
Needless to say, I am frequently confronted with demands which, in my position as mediator between the central authorities and the local authorities, I am often unable to concede fully and sometimes I have to reject them completely or suggest that the projects be deferred. Nevertheless, there is, I believe, a continued increase in that close and realistic understanding which I mentioned last year was growing up between my Department and the spokesmen of local administration. I wish to assure the House, and particularly those Deputies who are themselves local representatives, and through them local elected bodies generally, that so far as I am concerned my efforts will be constantly directed towards a development of this friendly understanding and co-operation with local bodies.