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Dáil Éireann debate -
Wednesday, 17 Jul 1974

Vol. 274 No. 8

Committee on Finance. - Vote 27: Local Government.

I move:

That a sum not exceeding £36,970,000 be granted to defray the charge which will come in course of payment during the period commencing on the 1st day of April, 1974 and ending on the 31st day of December, 1974, for the salaries and expenses of the office of the Minister for Local Government, including grants to Local Authorities, grants and other expenses in connection with housing, and miscellaneous schemes and grants including a grant-in-aid.

The net Estimate of £36,970,000 is in respect of the nine-month period from the 1st April to the 31st December, 1974. The Estimate corresponds to a 12 month figure of £42,890,000 or £9,566,000 more than the total net Estimate, including supplementaries for 1973-74, and is more than double the net Estimate of £21,246,000 in respect of 1972-73. The biggest increase over the 1973-74 provision is in respect of subhead E.1. This is the subhead under which provision is made for the payment of subsidy towards the loss arising on local authority housing. The subhead shows an increase from £11,401,000 in 1973-74 to £16,415,000 in respect of the 12 months to the 31st March, 1975. This increase reflects the continued implementation of the Government's policy of relieving local rates by a phased transfer to the Exchequer of the amount levied in rates in 1972-73 to meet the loss on local authority housing, and by absorbing in full the increase in that amount which would otherwise have fallen on local rates.

Another substantial increase is in subhead N—grant to the Road Fund. The provision for the nine months is £6,615,000 corresponding to £8,820,000 for 12 months or over £3 million more than the amount provided in 1973-74. The amount provided in the subhead supplements the amount made available from the Road Fund for road grants.

Other significant increases over 1973-74 on the basis of the 12 month period to the 31st March, 1975, include an extra £907,500 in subhead F, mainly in respect of subsidy towards loan charges on water and sewerage schemes; an extra £276,000 in subhead A for salaries and wages; an extra £160,000 in Subhead G for amenity schemes, and an extra £91,500 in subhead M, miscellaneous services, mainly in respect of itinerant resettlement and library subsidy.

The Estimate includes provision for maintaining housing grants at a figure equivalent to the high level of £8,000,000 reached last year, and for the continuance of the subsidy to building societies to enable them to keep down interest rates on house mortgages.

Deputies will be aware that a separate supplementary sum of £1,000,000 was agreed to by the House on the 6th June in respect of the recoupment of expenditure by local authorities on certain malicious injuries in the period up to 31st December, 1974. When account is taken of the moneys provided from the Local Loans Fund and the Road Fund and of the expenditure financed by local authorities from other sources, the total public expenditure on local government will total approximately £300 million in 1974-75. The size of this expenditure and the increase of approximately £35 million over the high level reached last year illustrates the importance, and the Government's recognition of the importance, of services such as housing, roads, water supplies and sewerage and the multiplicity of other services with which local government is concerned.

Deputies will have noted that nearly half of the Vote proposed for my Department is in respect of housing subsidies, payable to local authorities under subhead E.1. The estimated requirement of £17,564,000 for the nine months to 31st December next compares with a total expenditure under this subhead of only £5,827,000 in the financial year 1972-73. There are three reasons for the massive increase in financial assistance for local authorities—the steady expansion in the Government's programme of social housing and the improved quality of that housing, their decision to transfer, on a phased basis, the net running costs of that service from local authorities to the Exchequer and the introduction last year of a fair system of differential rents for local authority dwellings.

Ratepayers and tenants are benefiting substantially from these policies. For example, the local rates will meet just over £2.5 million for housing subsidies in the nine-month period ending 31st December next, compared with the rates contribution of almost £7 million in 1972-73.

The Vote includes a capital provision of £6 million under subhead E.2. to finance housing grants. This, of course, is only one element in the Government's capital investment in housing. In the nine months to 31st December, 1974, we will spend more than £60 million capital on housing— equivalent to £80 million over a full year. This compares with £46 million allocated under Fianna Fáil's last budget and is needed to deal with the lamentable legacy of bad housing conditions which we inherited from the previous administration.

One of our main commitments when we took up Government last year was to increase housing output to 25,000 dwellings a year, compared to an average of 15,600 dwellings a year over the previous five years. I am happy to say that in my first full year in office as Minister for Local Government the number of dwellings completed exceeded the 25,000 target. In particular, we realised that the local authorities' programme was wholly inadequate and that emergency action was necessary to deal with the situation.

A special programme of 10,000 dwellings over a five-year period has been got under way with the co-operation of the National Building Agency to supplement the maximum output which could otherwise be achieved by housing authorities. It is my intention to expand local authority housing output to at least 8,000 dwellings a year as soon as possible. This compares with an average of 4,800 dwellings annually under the last five years of Fianna Fáil Government. I am glad to record that the interim target of 6,500 houses set for 1973-74 was achieved—indeed exceeded, because 6,539 dwellings were completed in the year, despite serious difficulties resulting from the energy crisis and shortages of some building materials.

Our new policies have made an impact on every aspect of the local authorities housing programmes. To begin 6,539 dwellings were completed in the year to 31st March last, as compared with 5,784 in 1972-73. Dwellings in progress rose from 9,009 at 31st March, 1973, to 10,474 at the end of 1973-74; those at tender rose from 4,348 to 4,738 over the year. Dwellings for which plans were approved or were being prepared totalled 16,101 at the end of last March, an increase of nearly 20 per cent on the 13,472 being planned a year before. Nearly 62,000 additional sites were in the possession of local authorities or were in process of acquisition last March as against 50,000 when we took office last year.

The Government's emergency supplementary housing programme—intended as a practical expression of our determination to treat the housing situation as an emergency—is well under way, with the considerable achievement by the National Building Agency of having work started, within nine months, on over 1,600 houses, and having plans in preparation for another 3,000 houses. The quality of construction, accommodation and environmental amenity of local authority housing gave me cause for concern when I took up office last year. Frankly, I have been appalled by some of the major housing schemes built in recent years. In fairness to designers I lay most of the blame on the low-cost mentality of the last Government which permeated every aspect of the local authority housing programme. It conditioned architects in presenting design proposals, administrators in examining cost implication, contractors in preparing their "package deals", and supervising staff in the standard of finish they accepted from contractors.

It is my policy that public housing should be of a uniformly high standard. Successive Fianna Fáil Cabinets since 1957 "penny pinched" on the capital allocations for local authority housing. Tenders for urgent schemes were held up for months, while families languished in bad housing. The approach to schemes was to save every possible pound so that more dwelling units of a lower standard could be got from the limited capital provided. We must now face the practical consequences of that policy. This can best be done by securing the full co-operation of housing authorities and tenants in special programmes of maintenance, and by rectifying, as far as is possible at this stage, structural defects.

As to future housing, I am looking for bigger houses, with the emphasis on traditional construction and layout. I do not want to interfere with the creative designer, but I insist that designers must have regard to what local authority tenants want. Central heating is a recent innovation in local authority housing and, in so far as it helps in the fight against air pollution and gives additional comfort to the tenant at reasonable cost, it is to be welcomed. But, in my opinion, developments have raised serious doubts about its practicality in our conditions, with in particular our temperate climate. We have the example, in the Cork NBA housing project, of the serious condensation and mould growth which can arise when the effects of inadequate heating are exacerbated by other factors such as poor ventilation and cold bridges. Increasing costs for the fuels used in central heating discourage tenants from using installations. In my opinion, we should now review our whole policy about the provision of central heating. The general issue of thermal efficiency is being considered at international level and, as an immediate practical step, I have asked for solid fuel fireplaces or appliances in all houses, centrally heated or otherwise, and I may say also that I have indicated my strong preference for enclosed gardens and rear access ways to all terraced houses.

Another serious problem resulting from lack of foresight in past planning is the need to revitalise central city areas which have gradually become derelict as families have moved from them to the huge housing estates in the suburbs. Past housing policies have eroded the central city areas to the point where their renewal will be a very costly business. Nonetheless I intend that steps will be taken to restore the life and community spirit of Central Dublin. The most urgent task is the restoration of confidence in the remaining residents and the business community in these areas. A major step forward was taken by Dublin City Commissioners when they adopted the central city housing development programme. This visualises the initial acquisition of 15 sites totalling over 80 acres in the city for housing development.

Satisfactory progress has been made in the expansion of the local authority housing construction programmes in the Dublin area. At 31st March last, in the combined programme of the three housing authorities, there were nearly 5,000 houses in progress or at tender, 9,000 at planning stage and over 25,000 additional sites acquired or being acquired.

Dublin Corporation had work in progress or ready to be started on 1,616 dwellings, and were preparing plans for nearly 5,600 dwellings— representing an increase at planning stage of 80 per cent compared to the position at 30th September, 1973. The overall programme of Dublin Corporation at the end of March last comprised 19,403 dwellings compared with 16,868 six months earlier.

Dublin County Council's programme has shown a welcome upsurge, with 1,761 houses in progress or at tender at the end of last March compared to 613 houses at 31st March, 1973. I am glad that the National Building Agency, by means of the Government's special emergency supplementary programme, has played a big part in achieving this expansion. The Agency is providing 1,735 local authority houses, and 384 sites for private housing on behalf of the Dublin County Council.

The development of Dún Laoghaire Corporation's housing construction programme was inhibited by difficulties in obtaining suitable land. I am glad to say that this land deficiency has now been made good and Dún Laoghaire Corporation now hold or are in process of acquiring sites which will meet the needs of their construction programme for some years to come.

Deputies will share with me a special interest in the provision of suitable housing for aged and disabled persons. I have asked housing authorities to organise a new and vigorous campaign to give a proper housing and follow-up community service to these deprived members of society. Special working parties should be established to secure co-operation between housing, health and welfare authorities and voluntary organisations. Progress reports which I have been receiving give ground for much hope in what has been done. Almost half of the county councils have adopted my suggestions or have taken equivalent measures. I ask those authorities who have not yet reported progress or who have adopted a negative attitude to my appeal to review their position.

In July, 1973, the Government fulfilled their election promise to remove the unjust aspects of the differential rent schemes which apply to the big majority of local authority dwellings. The new national scheme, which applies uniformally to local authority dwellings throughout the country, is particularly beneficial to tenants on low incomes and to those who work long hours and whose income contains a large overtime element. Further improvements in the operation of the national scheme have been introduced, whereby the income to be taken into account for the purposes of the graded scale is not the household income but the basic income of the principal bread-winner, less income tax on basic income and less social welfare contributions. The scheme has been widely welcomed and appears to be working satisfactorily.

While the primary aim of local authorities is to provide dwellings on a renting basis for persons who cannot afford to house themselves, a subsidiary aim is to encourage persons in a position to do so to become owner occupiers. Schemes prepared under the new terms of sale for existing rented dwellings, which I announced last year, are now in operation in most local authority areas and many applications to purchase are being received all over the country. Due to delays which have arisen in certain areas in the preparation of new schemes, I have extended to 31st December, 1974, the period within which tenants may be allowed to purchase under the existing schemes. This is also the final date for application to purchase under the first schemes prepared under the new terms of sale.

I have dealt at some length with various aspects of local authority housing because I realise that, in the past, social housing did not get the attention and the level of investment which it merited and I want to leave no doubt that different policies now apply. At the same time, I do not underestimate the importance of the contribution to be made by the private housing sector in achieving the Government's target of 25,000 new houses annually. There are a number of statistical indicators which give a reliable picture of the state of the private house-building industry. Purchase loans applied for and grants allocated show the volume of work which can be anticipated in the year ahead. Loans approved and instalments of grants paid, reflect the extent of work currently in progress. Loans and grants paid are a measure of the rate of completions over a given period. All these indicators show the rapid expansion in output which has taken place.

Grants allocated in 1973-74 for new houses totalled 14,476 against 24,423 in 1972-73. The latter total was completely freakish, however, as 10,626 grants were allocated in the quarter ended 31st March, 1973— about two-and-a-half times the average of 4,400 during the previous three quarters. This resulted from builders endeavouring to get grants allocated on as many houses as possible before house price controls were introduced early in 1973. Outside the Dublin area, 11,967 grants were allocated last year as compared with 11,234 in 1972-73. The general situation is improving and 4,246 allocations were made in the quarter ended 30th June, 1974, as compared with 2,505 in the corresponding quarter last year. Applications for house-purchase loans for new dwellings being considered by all lending agencies totalled 16,654 at the end of last March, as against 14,077 a year earlier. The number of loans approved during 1973-74 by building societies, local authorities and assurance companies for the purchase of new houses was 16,477—a 20 per cent increase on the 13,706 approvals in 1972-73.

Payments of grants and loans last year were all-time records. Grants were paid on 17,380 new houses, compared with 14,615 in 1972-73. Loans paid out by all lending agencies for new houses totalled £57.28 million last year—a 40 per cent jump on the £40.79 million paid in 1972-73.

There has been a marked increase in loans by local authorities—from 5,087 loans valued £15.13 million in 1972-73 to 10,408 loans valued £39.71 million in 1973-74. I should point out that the big expansion in operations under the loans scheme is a good indication that it is still maintaining a fair relationship with the current levels both of house costs and borrower's incomes. The provision for the local authorities' loans and supplementary grants schemes in the 1974 Public Capital Programme is £20.85 million, which is equivalent to £27.80 million for a full year and is an increase of £2.31 million on the allocation for the full financial year 1973-74.

As regards building societies, I should mention the special subsidy that I introduced last year. An important feature of this subsidy was the way in which it has been used to promote the development of Government policy relating to the societies. Specific conditions attached to the subsidy include an embargo on loans for non-housing purposes, an upper limit on the amount of individual loans, the giving of precedence to loans for new houses, and the imposition in the interests of house purchasers of a maximum mortgage rate. The subsidy which is unprecedented and which could not have been given under the policies to which the last Fianna Fáil Government were firmly committed and which they set out clearly in their 1969 White Paper on housing, saves every borrower from a building society 1¼ per cent in annual interest charges by enabling the societies to offer a rate of 8 per cent paid, to their investors while maintaining the mortgage rate at 11¼ per cent. If the subsidy were not available, the societies would have been operating a mortgage rate of 12½ per cent for the past six to nine months. This, in fact, is the rate that borrowers would have been paying if Fianna Fáil policies in relation to building societies had been continued.

I should also mention the special arrangements which were made at my suggestion in October last whereby special loan facilities were provided for the building societies to enable them to expand their loan commitments quickly. A fall-back loan facility, amounting to £6 million, was made available by the Associated Banks and guaranteed by the Minister for Finance through the Building Societies Act, 1974. The initiative which I took in this matter helped the societies and the housing programme at a time when the societies were apprehensive about the flow of new money to them and were reluctant to commit themselves heavily. I am glad to say that the availability of the back-up facility, arranged with the banks, enabled the societies to embark immediately on an extended programme of forward approvals and had the effect of relieving a backlog of unsold houses which some builders in the Dublin area had on their hands. I am maintaining close liaison with the societies on the current situation and I can only reiterate here what I have said before—that arrangements will be made if necessary to provide additional finance.

In connection with the special subsidy, to which I have already referred, I intend at a later date to move a supplementary estimate to meet claims in respect of the period subsequent to 14th March, 1974. The amount included in the Estimate under Subhead O, £400,000, covers the period from 1st January, 1974, to 13th March, 1974.

Life assurance companies are another important source of finance for house-purchase loans and in 1973-74, they made a welcome investment of £10.54 million for the purpose. In the same period, they approved a total of 2,069 loans, compared with 1,534 a year earlier. These figures must, of course, be related to total premium income and, in this respect, they show no actual improvement in the proportion of premium income used for house purchase loans.

I am concerned about this situation, because it is estimated that a return by life assurance companies to the proportionate investment of premium income in housing which obtained some five years back would provide in 1974 an additional £5 million approximately in house-purchase loans. Discussions between representatives of the Life Offices Association and officials of my Department and of the Department of Industry and Commerce have been taking place with the purpose of encouraging the companies to allocate additional funds to finance housing.

At a time when house prices are rising at an unprecedentedly fast rate, it is essential that the person of modest means purchasing a house should feel that the price demanded is not excessively high and that the quality of construction is reasonable.

The scheme under which builders must obtain a certificate of reasonable value in respect of every grant-aided new house included in a scheme of four or more houses built for sale, provides a measure of protection for the purchaser. Up to 31st May last, applications for certificates were submitted in respect of 14,143 houses. Of these applications, certificates covering 11,084 houses were issued, 81 applications in respect of 1,413 houses were rejected and the remainder were at various stages of consideration at 31st May. The scheme is under continuous review in the light of changing costs for labour and materials in the building industry. Applications for certificates are dealt with speedily: the average time taken to issue decisions has been 16 days in cases where certificates could be granted and 18 days where certificates were refused.

On the question of standards of construction, consultations are taking place with the Construction Industry Federation in relation to a new house purchasers' guarantee which it is hoped to introduce next year. This will be a structural guarantee given by builder members of the Federation to the purchaser of each new house provided by them. The scheme should go a long way towards resolving complaints made by purchasers in relation to defects in their new houses.

During the past year, I have continued to encourage the development of the co-operative movement in housing. In particular, I am anxious to ensure that groups of people who combine to provide their own houses on a co-operative basis are given the fullest support by local authorities. The good response by local authorities is evidenced by the fact that negotiations are in progress throughout the country for the allocation by the authorities of about 1,000 subsidised and developed sites to co-operative groups. This is one of the interesting details which have emerged from a survey of co-operative activity which I have been conducting. The objective of the survey is to consider what further measures of assistance are desirable to enable the movement to develop.

I may say that I have met a number of groups and have seen at first hand the quality of the work which they have been doing. I feel that this is a sector of housing activity which is commendable from a national and social viewpoint and is directly rewarding to the group members.

The continued good work being done by voluntary housing organisations also deserves our appreciation. It is important that these groups should be aided by local authorities which are empowered to give assistance by way of loan, loan guarantee, or periodic contributions. I would urge local authorities to give every help and encouragement to organisations which are active in providing accommodation to supplement the direct construction work of the authorities themselves.

While I have laid emphasis on the provision of new houses, I fully realise the national importance of preserving the existing housing stock and of adding the facilities and amenities which are necessary to bring old dwellings up to the standard which is now regarded as normal in the case of modern houses. I am glad to record, therefore, that my Department paid 8,962 reconstruction grants last year—a total that was bettered only once in the past 12 years.

Last year 10,979 grants were allocated for reconstruction—a substantial increase on the 9,445 allocations in 1972-73 and the 9,594 in the preceding year. This is a welcome trend.

I am anxious to ensure that the grants and loans from public funds to assist reconstruction work should be applied in a more rational and selective way than heretofore so that comparatively greater assistance should be given in respect of works considered to be essential or highly desirable than to work mainly amenity in character. Accordingly, I am having the existing grants scheme reviewed in the light of experience in other countries and with regard to the findings of the National Survey of the Housing Stock, carried out jointly by my Department and An Foras Forbartha, the reports on housing obtained in the 1971 Census and other information. I might mention at this point that I am arranging to pay reconstruction grants where solid fuel fireplaces or appliances are installed in centrally heated houses even though a statutory minimum period has not elapsed since a previous housing grant was paid. Provision dealing with the matter by way of an amendment to the Housing Act, 1966, will be included in the next Housing Bill. I am sure that the House will endorse this action.

In view of the importance of the building industry in the national economy, it is essential that a high level of efficiency be maintained in the industry. Measures are taken to encourage this with the willing assistance of An Foras Forbartha—for example, by conversion to a metric system of measurement, modular coordination, rationalisation of building components, the preparation of building regulations and a technical assistance grants scheme.

The change to metric in the building industry made considerable progress during the past year. The most recent survey of change in the design and construction sectors showed a significant commitment to metric working and about two-thirds of all work being carried out is now in metric units. In the building materials sector, similar progress is reported and the basic materials are all now available in metric terms. It is now more convenient to use metric in design and construction than to use the traditional measurements.

Work in my Department on the preparation of a final draft of a comprehensive code of building regulations under section 86 of the Local Government (Planning and Development) Act, 1963, has reached an advanced stage. When completed, the draft will be made available for public comment, before the regulations are formally made.

It is essential that people engaged in the construction industry should keep abreast of new techniques and developments. The technical assistance grants scheme operated by my Department assists activities to increase efficiency. Under the scheme, grants are made towards the cost of attendance at training courses by managerial, supervisory or technical personnel engaged in the building industry as well as certain trade union officials and representatives. The grants may also be made towards the cost of study visits abroad by representatives of management and labour to study specific aspects of the building industry. Grants are made also for the engagement of consultants by builders or contractors to advise on matters directed to the improvement of their efficiency. Expenditure on the grants under subhead L, is estimated to be £18,000 in the nine-month period to 31st December next.

I met a deputation from the Construction Industry Federation on the 12th June. The questions of employment in the house building industry and the sales of building materials were discussed. I informed the deputation that what had been said by them had been noted and I gave an assurance that the industry would be kept going.

References have been made in the press and other news media as to numbers of dwellings left vacant because of the inability of intending purchasers to obtain housing loans to meet their commitments. I have already pointed out that the Government have taken positive measures to provide finance for houses through an increased public capital programme and by means of positive assistance to the building societies. I have indicated that if extra money is required it will be made available. I repeat that assurance now.

People who should know better— indeed whose job it is to know better —are misinterpreting statistics connected with housing. A glaring example is the misinterpretation in this House and outside it of figures for new housing grant allocations. It has been alleged that there was a 60 per cent drop in the number of housing starts in the first quarter of this year as compared with the same period last year. This is entirely false. The drop was not in housing starts but in new house grant allocations.

The reason for the drop was as mentioned previously, the very high volume of applications for grants which was made in anticipation of house price control being introduced in February, 1973. The extent of the distortion can be seen by a comparison of the figures for previous quarters.

This misinterpretation of important statistics is part of the campaign which has been mounted to denigrate the Government's impressive housing record. Figures have been quoted also about unemployment in the building industry. The available statistics do not support any grounds for scaremongering in this matter. The Government are committed to a programme of 25,000 houses per year and the resources to meet this commitment will be made available.

Provision is made this year for a further increase in the Exchequer contribution to the Road Fund. The provision of £6.6 million for the nine-month transitional period is equivalent to over £8 million for twelve months or over £3 million more than the 1973-74 figure. This has enabled me to raise the total allocation of grants from the Road Fund to £16 million for the nine-month period.

The introduction last year of the block-grant system for roads other than national roads was an important step in the devolution to local authorities of responsibility for determining their own priorities of planning and expenditure in relation to local needs. I have extended the principle this year by abolishing the 50 per cent limit on expenditure from grant moneys on the cost of upkeep of main roads. I have also accepted as a 100 per cent charge on grants the cost of upkeep of national secondary roads. Up to this, local authorities had to find 50 per cent of the cost of the latter service from rates, involving a local charge of about £660,000.

They can now decide to omit any such charge from rates or, if they wish to make equivalent provision for another service. I have also removed the obligation from local authorities of advance submission to the Department of proposals for urban road works. Urban authorities can now decide in their own wisdom how best to use their grant allocations in the local interest. Of course, as long as the State is providing grants from public revenues, it is obliged to see that the money is spent to proper advantage and my Department through its inspectorate will keep in touch with the development and carrying out of local programmes.

The whole question of financing road construction and related services such as safety, research and enforcement, is a complex one. We have moved into a new era in roads programming in recent years. With the assistance of An Foras Forbartha, a detailed study has just been completed of the future needs of the national primary roads system, and its cost implications are being considered. The very high cost of roads improvement, including land acquisition, prompts the question whether it will continue to be practical to finance such capital works from current revenues. This and other aspects of road financing are being studied. The solutions are not necessarily easy.

Since the recent Act dealing with national roads and motorways was passed I have noticed a certain amount of critical public comment in anticipation of certain possible motorway schemes. I welcome the healthy and growing interest in environmental issues by local bodies and community groups. I do not accept, however, that a serious clash of interests need develop on roads issues. I expect the fullest public consultation by local authorities on their proposals before any scheme is formally submitted to me. I hope to see enlightened criticism emerging as a beneficial influence on the preparation of final proposals by a local authority. What I would deplore at this stage is the drawing up in advance of unnecessarily rigid positions either by local authorities or by people whom they are elected to represent, the consequence of which can produce a great deal of public misunderstanding, and frustration and disillusionment on one side or the other, with perhaps the unnecessary deferment of civic works for which there is a clearly established need.

The pattern of road accidents continues to be one of very great concern to me. The National Road Safety Association has now been given corporate status and a grant of £140,000 is available to it for the current year. I expect the association to get the dynamic going which will bring home to everyone the importance of the behaviour of drivers and of preventive measures which are designed to obviate the tragic and costly results of road accidents.

I have received a thought-provoking report as a result of a research project carried out at my Department's request into the safety condition of vehicles on the road. The object of the study was to measure the nature of defects in vehicles which might be contributory factors in road accidents, so that I might assess the merits and appropriate procedure of introducing a national system of vehicle inspection. In the Dublin area alone, 51 per cent of cars inspected had misaimed headlamps, 36 per cent had tyre tread below the minimum requirement, 30 per cent had faulty steering linkage. These are only examples of the findings in Dublin, where over 85 per cent of cars inspected had one or more defects of significance for safety. The findings show up even more unfavourably those cars inspected outside the Dublin area.

I accept that it is not possible to measure scientifically the relationship between the general condition of cars and the rate of road accidents, but it should be of deep concern to all car owners that so many vehicles have particular defects which can contribute to accidents in times of stress, in bad weather or in periods of darkness. I hope we can secure an urgent public response to the problem which the survey has revealed. At the same time, I propose to consider what steps might now be taken, commensurate with costs and anticipated effects, of devising a general scheme of vehicle inspection for which statutory provision was made in the Road Traffic Act of 1968.

Notwithstanding the desire of the EEC for progress in the harmonisation of transportation requirements in member states, many issues which were alive when Ireland became a member remain unresolved. The policy of members on the standardisation of weights and dimensions of vehicles is still divided. Major details of the concept of harmonisation of the tax structure for commercial vehicles continue to be developed, as does the idea of an infrastructure tax, a concept designed to replace the existing pattern of road and freight taxation. Policy is also being developed on the standardisation of driver licensing and vehicle testing. While we have not so far found it necessary to change our domestic law by virtue of our membership, the interplay of ideas and the constant exchange of information at all levels is useful to us and, in so far as international agreements may in particular help to reduce road accidents here and throughout Europe, we will be very glad to co-operate in the furtherance of the aims of the EEC Common Transport Policy.

The provision for the Local Improvement Schemes is being maintained at the same rate as for last year, that is, £1 million for a full year or £750,000 for the nine-months' period. Demand for grants under the scheme continues to be heavy, and no doubt in the view of many Deputies calls for a bigger provision. However the demand in this area must be balanced against the needs of other services. I am satisfied that in present circumstances the proposed provision represents a reasonable contribution towards the cost of these works.

Few developments in my Department in 1973-74 were more important than the increase in the capital procep vision for public water and sewerage schemes to £12.95 million from £8.23 million in 1972-73. This helped these programmes to get out of the doldrums they had been in for a number of years due to underfinancing. As a result of this increased capital provision, I am glad to report that I was able to approve schemes to a total value of £18.0 million for commencement in 1973-74 compared with £10.9 million in 1972-73. For the current nine-month period the provision for public water and sewerage schemes at £11.45 million is equivalent to an allocation of £15.26 million on a 12-months' basis. In other words, in a period of less than two years, the amount of capital expenditure on sanitary services will have been increased by more than 85 per cent.

My Department are urging local authorities to push ahead with the planning of a number of priority sanitary services schemes so that, when fully planned, they can be considered for financing in conjunction with similar schemes from other areas. In this way I intend to ensure that all areas in the country will be able to develop their water and sewerage services in order that full advantage can be taken of any and every opportunity which presents itself for the economic improvement of their area.

The provision of extra money for the sanitary services programme will not, in itself, yield satisfactory results unless schemes are planned, approved and executed with the minimum of delay. To my mind the involvement of the Department in the planning of these schemes has been far too great in the past. I decided to place the responsibility for the detailed planning of water and sewerage schemes squarely on the shoulders of local sanitary authorities—where it belongs —and I have informed the sanitary authorities of the new procedures which will ensure this. A similar look is being had at the miscellaneous environmental services, which I deal with elsewhere.

The 1971 census results indicate that 40 per cent of rural houses still lack a piped water supply. This means that thousands of rural families are daily faced with the drudgery of drawing water from wells, pumps and other sources which may be located some distance away from their homes. I am determined that this position will be rectified in the shortest possible time.

Under revised arrangements for group water supply schemes commencing on or after 1st April, 1974, all State grants will be calculated and paid by my Department. Grants paid by them on behalf of Roinn na Gaeltachta and the Department of Agriculture and Fisheries will be recouped by those Departments. This will speed the payment of grants and reduce paperwork for group promoters who will, in future, be able to address all correspondence about their schemes to a single Department.

Local authorities must continue to play a key role in helping and encouraging the development of group schemes in their areas. I have asked them to include in their priorities schemes of headworks, trunk mains and reservoirs needed to enable group schemes to develop in areas where reliable sources of potable water would not otherwise be available. Some local authorities provide a range of technical services for groups including well boring, testing of potential sources, the design of schemes and, in a few counties, the supervision of schemes in progress. I should like all local authorities to consider providing these and any other technical services needed to facilitate groups.

The experiment which I initiated last year under which group schemes work previously done by my Department has been devolved to a number of counties is continuing and the result will be evaluated in due course.

A key element at an early stage in the programmes of local authorities is the land necessary for their operations. Land acquisition policies of local authorities now cover more than the traditional objective of providing just the land necessary for the houses, roads and other works of the local authorities themselves. The development and the redevelopment of areas must be considered in a comprehensive way and if plans for these areas are to be effectively realised the local authorities may find it necessary to acquire land on a more extensive scale than hitherto.

This poses a serious financial problem for local authorities who have to balance their programmes of land acquisition with other urgent programmes. The financial burden would not be made any lighter if the kind of operation described in the Kenny Committee Report were allowed to spiral up the price of land.

The central issue which the Kenny Committee considered was the control of building land prices. As the report indicates, the problem is indeed a complex one and the solution not an easy one. But the Government have grasped the nettle and have indicated their option. In their statement of the 26th January, 1974, they indicated that they favoured the approach enunciated in the majority report of the Kenny Committee but, before taking final decisions on many of the important matters of detail involved, they would take into account the views of interested members of the public and local authorities. Views from a number of bodies have been received and others are still coming in. It is likely to be some time before the drafting of the necessary legislation can be finalised. The complexities of the matter are such that all the views submitted will need to be sorted out and carefully considered before a scheme can be worked out. When legislation has been prepared and passed by both Houses of the Oireachtas, the Government have decided that the opinion of the Supreme Court should be obtained in order to remove any possible doubts as to the constitutionality of the provisions.

In the meantime, the Government have not entered into any commitment in relation to the amount of compensation which will be payable for land in a "designated area" but have given notice that account will not be taken of the price obtained in any sale subsequent to the 26th January, 1974. It is hoped that the effect will be to discourage further escalation in the price of land.

Apart from the major recommendation in the Kenny Report, the committee made some other valuable recommendations, including those for the amendment of the normal law on compulsory acquisition which will still be required. Work is in hand in my Department on preparing legislation accordingly.

Pending new legislation, the work of processing compulsory purchase orders under the existing law must go on at local authority and Departmental levels. I have taken all possible administrative steps to improve the flow of work, but it must be accepted that the process of a compulsory acquisition has to take time, because of the legal and other safeguards that have to be built into the system.

At the 1st April, 1973, there were under consideration 82 orders for the acquisition of 2,969 acres of land required by local authorities for their powers, functions and duties relating to housing, sanitary services, roads and so on.

During the year ended 31st March, 1974, 91 compulsory purchase orders for the acquisition of 1,517 acres were submitted. In this period 81 orders comprising 2,636 acres were confirmed and six orders comprising 39 acres were annulled. At 31st March, 1974, there were 86 orders comprising 1,811 acres under consideration, but 12 compulsory purchase orders which had been confirmed were the subject of proceedings in the courts and were therefore suspended until final determination of the proceedings. There are about 2,550 acres of land included in these orders.

An important Supreme Court decision was made on 5th April, 1974, in relation to the Poppintree-Balbutcher-Santry Area Compulsory Purchase Order, 1967. This judgment was to the effect that a local authority may make a compulsory purchase order on lands outside their functional area without entering into a formal agreement with the local authority in whose area the lands are situated, provided of course that the Minister is satisfied they have produced the necessary evidence at the public local inquiry to show that they require the lands for the fulfilment of their statutory functions. The development of such lands if the CPO is confirmed will still require planning permission from the planning authority in whose area the lands are situated.

A related matter is that of water rights. At 1st April, 1973, there were six applications for the taking of supplies of water under consideration. During the year ended 31st March, 1974, four applications were received, four provisional orders were granted, one application was refused and four provisional orders previously granted were confirmed. At 31st March, 1974, there were five applications under consideration.

The debate on the Planning Bill is probably the most appropriate forum at the moment for a discussion on planning, but when looking at the work generally of my Department and the local authorities, it is inevitable that I should stress the importance of planning in our programmes and its impact on the public generally.

At regional level it lays the basis for a policy of settlement location and growth and so is a main determinant in the plans for location and nature of infrastructure. At local authority level it lays down the basis on which the local authority see their area developing and it affects all the important individual decisions of private and public interests to develop land in any way.

It has been my concern since I took up office to consider how best planning can serve the people and how it can be operated most effectively. I shall give some examples.

I indicated in my last Estimates speech what was my approach to planning control and in particular planning appeals, since it is in the exercise of that function that I can indicate my policy most effectively. I stressed that I wanted the most flexible possible approach, eliminating unnecessary restrictions on people, particularly in regard to housing, and reserving the force of planning for the most important problems. I can say that, on the whole, my approach has been heartily welcomed, especially by those who appreciate most the inhibiting effect of negative and unduly restrictive policies. The elected members of local authorities have warmly approved of my line as have many of the members of the public who have been affected by excessive planning control. There have been some criticisms. It would be strange if there were not. But I am convinced that my policy is right and has overall approval.

With the continuing growth of the economy, the number of planning applications has continued to grow, and as a consequence the number of planning appeals has increased to 4,000 in 1973-74, over 800 more than in the previous year. I am happy to say that in 1973-74 3,891 were disposed of, 900 more than in the previous year. The Planning Bill before the House contains the Government's proposals for improving planning control, not merely by the establishment of the new appeals board. It also proposes a comprehensive strengthening in enforcement powers and has other valuable provisions.

One could consider regional planning as at the other end of the planning spectrum. It can be a powerful weapon to implement Government policy. The Government are firmly committed to a policy of improving the standard of living of all our people by providing sufficient employment where this is not already available. This does not mean providing employment just in the larger towns, some of which already experience the problems associated with rapid development. As Minister for Local Government my main concern is to ensure that the infrastructure necessary to support the increased number of jobs is provided by making sufficient money available to local authorities to enable them to do this.

This country is now undergoing a process of urbanisation. In the past, urban growth has been associated with the drift from rural areas and the natural increase of town population. However, with the decline in emigration, present indications are that our national population will continue to increase and that the increase will have to be accommodated to a considerable extent in our towns. To meet the challenge of population expansion, increased and sustained programmes of infrastructure provision will be required. The orderly planing of land use and the environment must as far as is possible keep ahead of development trends and pressures. Demands will more than strain our resources, hence the need for careful choice of priorities for investment and the co-ordination of various development programmes. While each local authority is responsible primarily for the development of its own area it recognises that this is tied up closely with the development of adjoining areas and that an integrated and coordinated approach to development planning is necessary. The vehicle for this co-ordination exists in the regional planning organisations which have been doing much work in the nine planning regions. The organisations are a blend of elected representatives and officials, and all agencies concerned with development are represented on the boards and committees. I think that these organisations, without in any way taking from the functions of the local authorities represented on them, can play an even more active role in the co-ordination of plans and in the working out of development programmes and priorities for infrastructural investment.

Very much related to planning is the group of miscellaneous services which local authorities operate and which can lead to a general improvement in the whole environment of an area and the quality of life of the people. I shall deal with a number of these.

An obvious one is the scheme of amenity grants. Under subhead G there is provision for grants to assist local authorities to provide a wide range of improvements in their area. The allocation for the current year— 1st April to 31st December, 1974— is £300,000. This is equivalent to £400,000 for a full year, a substantial increase on the previous year's allocation of £240,000. The amount of the provision, taken with the expenditure by the local authorities from local funds on amenities and the contributions of voluntary groups, represents a substantial investment in the improvement of the environment and the provision of recreational facilities. The interest shown by voluntary groups and their co-operation with the local authority which the scheme has generated is a most desirable trend and one which I hope will continue.

Under this local authorities may themselves provide pools or assist voluntary bodies and my Department make a generous subsidy to the local authorities.

The programme continues and I recently approved in principle of five pools at Cavan, Dungarvan, Kells, Roscrea and Trim and of contributions by Dublin County Council towards the cost of pools at Tallaght and Blanchardstown community schools.

I am at the same time concerned to ensure that the maximum benefit is derived from all pools, those already provided as well as those now on the way. I have therefore instituted a full review by an informal working group of all the problems involved in the operation of swimming pools. Alive to the difficulties created for pool operators by the recent increase in fuel costs, I have arranged, as part of the group's work, for a study to be carried out by the Institute for Industrial Research and Standards of the efficient production, use and conservation of heat in swimming pools and I intend to make the findings available to local authorities and other interested groups.

I would also like to refer to local authority libraries. I am glad to say that, last year, the Department sanctioned loans totalling £427,000 which was more than double the total in any previous year. I am anxious that proposals for capital library projects should be processed as quickly as possible, and in this connection consideration is being given to the question of developing more responsibilities to local authorities for these projects, on the basis of detailed guidelines issued by An Chomhairle Leabharianna. A special examination is also being made of staff training and development in the local authority library service. The provision in subhead M for payments to An Chomhairle Leabharlanna, which is mainly in respect of subsidy towards loan charges on local authority library projects, is £65,000 for the nine months. This is also a record figure.

In this context I may refer to our contribution to the Council of Europe campaign for European Architectural Heritage Year, 1975. I have the honour to be chairman of the National Committee for the Year, and I am happy to record that the President has been kind enough to act as patron for the Year. As chairman of the National Committee, I would also like to express my appreciation of the dedicated work of the members of the committee, representative as they are both of public and private bodies, and of the many individuals and organisations who have pledged their support to the campaign for Architectural Heritage Year.

Highlighting the National Committee's programme are the two projects —at Holycross, County Tipperary and St. John's Square, Limerick, which have been accepted as part of the Council of Europe's programme of pilot projects in connection with the Year. However it has also been a satisfying feature of the Irish Campaign that the National Committee have succeeded in securing the involvement of local authorities and of other bodies in a wide range of local projects. These may not all be monumental in scale but they are valuable both as local contributions and as a means of interesting the general public in the problems and benefits of conserving our architectural heritage. The National Committee have planned a number of promotional activities— competitions, exhibitions and educational programmes, for 1975 and I am confident that their efforts will ensure that European Architectural Heritage Year is marked appropriately.

Directly associated with the more positive development side of local government is its protective role in relation to the environment. Indeed it is accepted that pollution problems and environmental problems generally, are side effects of development. If we are to have the benefits of faster growth without, at the same time, suffering serious environmental damage, certain implications have to be faced. A fundamental one is that environmental considerations must be built into our development programmes generally. The environmental implications of a development, public or private, must be taken into account from the beginning, and the necessary safeguards provided for in planning and observed in execution. While the Planning and Development Act, 1963, affords a fundamentally sound system for this kind of environmental planning, it does require improvement, and the Bill at present before the House includes a number of provisions which will strengthen the physical planning system as a means of environmental protection.

I go on to refer to measures which are in hand to deal with existing pollution problems. I believe, however, the main need is to guard our natural resources against the much greater threats which can arise in the future as national development proceeds. This gives rise to various legislative and organisational needs which must be provided for. It also calls for a sense of environmental responsibility—individual and corporate, private and public—which has not always been evident in the past. At all stages of development and in all kinds of planning, there will have to be acceptance of the need to take account of possible adverse side effects of development proposals and to build into the planning control whatever measures may be necessary to avoid or minimise such damage. Increasing attention is being given by my Department to measures to protect the environment. These include measures to control water and air pollution, to deal with waste and with the dangers of oil pollution on the coasts.

The making of suitable arrangements for control of water pollution is one of my urgent priorities and I am pressing ahead with the preparation of comprehensive legislation on the subject. A Bill to provide for an adequate legislative framework for dealing with the problem is at present being drafted and I intend to have it brought before the Dáil as soon as possible. Pending enactment of such legislation I am actively encouraging local authorities to take such interim action as is possible, including full use of their powers under planning legislation, to prevent and abate water pollution.

The Water Resources Division of An Foras Forbartha continues to play a very important role in providing information and advice in relation to the quality and quantity aspects of our water resources. With regard to the quality aspect the Division has carried out further chemical investigations into the quality of stretches of some 30 rivers which were found to be unsatisfactory in an earlier survey carried out in 1971. The results of these further investigations have now been published. They show that the chemical investigations indicate 14 of the rivers as reasonably satisfactory, 15 as satisfactory part of the time and seven as unsatisfactory. An Foras have also commenced a preliminary survey of 59 lakes in order to build up a baseline of data on the condition of the more important and representative lakes in the country with a view to carrying out more detailed studies on selected lakes.

I referred in my Estimate speech last year to a meeting I held in October, 1973 with representatives of voluntary and other bodies concerned with the water pollution problem. Arising out of the views expressed at that meeting I have decided to set up, on an informal basis in advance of legislation, a National Water Pollution Advisory Council to advise on water pollution matters generally. I intend that all relevant interests, including industrial, agricultural, fishery, professional, scientific, voluntary and local authority interests, in addition to Government Departments and semi-State bodies concerned, will be represented on this council. I expect to be in a position to make a further announcement on this matter shortly.

A provision of £15,000 is included in the Estimate for clearance of oil pollution. The preparation by maritime local authorities of contingency plans for clearance of oil pollution is generally well advanced. In addition most local authorities concerned have purchased, or are in course of purchasing, spraying equipment and supplies of dispersant. In view of the threat of oil pollution to our coasts it is imperative that all maritime areas be fully prepared to deal with oil spillages. Local authorities are assisted by a State subsidy of 50 per cent in meeting the cost of oil pollution clearance work, subject to a limit on local authority expenditure of the produce of a rate of 2½p in the £ in any year. Any expenditure over and above this limit is met in full by the State.

The monitoring of air pollution by local authorities is gradually being extended in the main urban centres. Existing monitoring relates mainly to smoke and sulphur dioxide. The need for further extension of the system, or for the monitoring of other pollutants in the ambient air is being kept under review. This monitoring is important. It is important that we should know what existing conditions are, what the trends are, so that there may be advance warning of any conditions which may indicate a need for action under existing control or for new controls.

I am glad to say that it has been possible to intensify my Department's activity under the Alkali etc.. Works Regulations Act, 1906, in relation to certain industries, mainly the chemical industries. It is, of course, particularly important that there should be effective control in relation to these particular industries and the increased activity will be maintained, and if necessary, developed further to achieve this objective. It is also being considered whether it is necessary or desirable that the kind of control exercised under the Alkali Act should be extended to types of industry not at present covered by the Act. There is a notable increase in awareness of an interest in air pollution on the part of the public. This is a very healthy development. It should encourage the local authorities to develop further their activity (not always sufficiently recognised) in enforcing the Control of Atmospheric Pollution Regulations, 1970. These regulations restrict heavy smoke emissions and the excessive emission of smoke, dust, grit, gas or fumes. I believe that this system is working reasonably well but it will be developed and improved as the need arises.

The volume of waste of all kinds is increasing and there have been important changes in the composition of waste. These developments underline the importance of the quality of the waste collection and disposal service provided by local authorities. In order to promote higher standards and generally to improve the efficiency of the dumping and waste disposal service, I have issued guidelines and detailed advice to local authorities as to how their systems might be reorganised on a countywide basis and modern methods of collection and disposal adopted. I believe that measures of this kind can lead to a substantial improvement in the standards provided and will enable the growing demands on this essential service to be met effectively.

With the rapid increase in industrialisation and in mining activity, the disposal of solid toxic wastes may present formidable problems in the future. I intend that we should be prepared for this and I am having this situation examined to see whether any special control measures, or any special advice to local authorities, should be arranged now. The problems of toxic waste disposal are under special study in the EEC. We will have the benefit of that work and must, of course, take account of any proposals that might emerge in the Community.

In replying to the debate on the Second Stage of the Planning and Development (Amendment) Bill I informed Deputies that it was my intention to again remind local authorities of their responsibility for the control of litter. As a follow up to the detailed circular issued in August last a further circular has been issued together with a letter addressed personally to all City and Country Managers requesting them to take an active interest in combating the problem and to avail themselves of every opportunity to encourage civic pride in their areas by providing an adequate and efficient refuse disposal service.

Environmental and pollution problems are world-wide and all countries are grappling with them. There are certain common patterns but, in general, the more highly developed the economy, the stronger the pressures on the environment. Furthermore, pollution originating in one country can affect others. Not surprisingly, therefore, there is a definite quickening of interest in action at international level to deal with environmental matters.

A new environment programme is being launched under the United Nations promoting co-operation, exchanges and assistance at the international level. New initiatives are also being taken in a number of other international bodies. Of most immediate concern to us are the happenings in the EEC where work is progressing under an enviornment programme which was approved in July, 1973 and formally adopted in November last. This programme provides for three types of activity-projects aimed at reducing and preventing pollution and nuisances; projects intended to improve the environment and the quality of life; and joint action by the member states in international organisations dealing with environmental questions. In promoting these objectives it has become evident that there are considerable gaps in scientific and technical information about pollutants and their effects as well as varying opinions as to appropriate control objectives and methods. Much of the early work under the environment programme will be concerned with the filling of information gaps and the development of a basis for a common approach to the assessment and control of pollutants, including where appropriate the adoption of common standards or other control devices. A number of specialists groups have been established to advance this work.

Progress reported; Committee to sit again.
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