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Dáil Éireann debate -
Wednesday, 3 Mar 1999

Vol. 501 No. 4

Ceisteanna–Questions. - Local Authority Housing.

Eamon Gilmore

Question:

7 Mr. Gilmore asked the Minister for the Environment and Local Government the latest information available to his Department of the number of persons on local authority housing waiting lists at the latest date for which figures are available; the number of local authority dwellings expected to be completed during 1999; the number it is estimated will be on local authority waiting lists at the end of 1999; when the next national assessment of housing needs will be undertaken; his views on whether the local authority house building programme is adequate in view of the numbers on local authority lists; and if he will make a statement on the matter. [6351/99]

On foot of the commitment in An Action Programme for the Millennium to a continuing house construction programme by local authorities and voluntary groups, and in response to increasing needs, the local authority housing programme for 1999 will be expanded to 4,500 "starts", the highest number of "starts" since 1986. Significantly increased capital resources will be provided for the local authority housing programmes in 1999; almost £230 million is currently available, an increase of £35 million on last year. This will meet expenditure commitments in the ongoing programme at end 1998 as well as the "starts" authorised for 1999.

I directed that the next comprehensive assessments of local authority housing needs should be carried out by local authorities on 31 March. Guidelines on the undertaking of the assessments were issued to all local authorities. The assessment will provide details of the extent and nature of housing needs in each local authority area. The last statutory assessment of local authority housing needs was carried out on 29 March 1996 and disclosed that the number of households assessed as being in need of local authority housing was 27,400. Details of that assessment are provided in my Department's housing statistics bulletin for 1996, which is available in the Oireachtas Library.

The local authority housing programme is supplemented by a range of other social housing measures in meeting social housing needs, such as the new affordable housing scheme that I announced yesterday, voluntary housing, shared ownership, etc.. It is for each housing authority to develop the full potential of the various measures open to them to respond to housing needs in their areas and I have regularly exhorted authorities to do so. The new scheme, and improvements I made during 1998 in the voluntary housing capital assistance and shared ownership schemes, will result in increased housing output from these schemes in 1999.

I expect that approximately 3,700 houses will be completed or purchased by local authorities in 1999. These, together with output from the complementary social housing measures and vacancies occurring in the existing housing stock, will enable more than 10,500 households to be catered for in 1999 compared to 9,300 in 1998. I am confident that the greatly increased provision for the 1999 social housing programmes will considerably enhance the capacity of local authorities to meet social housing needs to the fullest extent in the current circumstances.

The Minister of State referred to the scheme he announced yesterday. How many houses will be started under the scheme in 1999? How many houses will be built under it in a full year?

The scheme has been made available to local authorities and it is not possible to give an accurate assessment of the number of local authorities which will take action in 1999 to achieve the allocation of mortgages.

What is the Minister of State's estimate?

It is a very valuable additional option in this area. It is not intended as a solution to the huge housing demand that exists.

Mr. Hayes

The Minister of State can sing that.

It is intended as an additional option to increase the flow of affordable houses. I hope that local authorities will respond quickly to the new scheme and get projects under way. Hopefully, some houses will start this year. Two local authorities have projects in mind, with sites allocated, which would greatly benefit from the scheme. I expect that they will soon come forward with proposals.

The output from other local authorities depends on their responses. They are the housing authorities and we are providing this attractive package to assist people, who find that their incomes are not large enough, to purchase a home. Through the mortgage subsidy element of this scheme their income requirements for loan repayments will be approximately 30 per cent of their net income and in those cases local authorities will make a judgment as to whether people have the capacity to repay the loans. It is geared at those who currently are unable to purchase a house and they will be able to do so without a profit element added in by the market. The houses will be constructed by the local authorities without any add-on, other than 0.5 per cent on the interest rate, which is to cover administration expenses.

That was a long reply which told me nothing. Last night on television, the Minister of State told the nation that he had considered this scheme for months and discussed it with county managers. After all that consideration and discussion can he not tell the House that even a single dwelling will be provided under this scheme in 1999? In regard to eligibility for the scheme, will he confirm that a couple, each of whom earns £15,000 per year, will not be eligible for it?

It never ceases to amaze me that members of the Labour Party seek to adopt a negative approach to positive initiatives, yet they claim that they want to see the Government's housing objectives achieved.

We want to see initiatives, not a phoney public relations exercise.

The discussions with county managers arose from an initiative I took soon after I became Minister of State to see how local authorities could be helped to contribute to those with housing needs. A number of discussions took place with officials.

Mr. Hayes

It has taken two years to get to this point.

The Deputy is disorderly and may not intervene.

I inherited a situation where nothing was being done.

Mr. Hayes

The Minister of State is hogging time.

That does not entitle the Deputy to interrupt.

I am confident that there will be a good response from local authorities and time will tell. I hope that a substantial number of people will be happily living in their own homes after a number of years under this scheme.

In order to have something to say to the House today, did the Minister of State hurriedly announce a scheme yesterday which has not been thought out, will not produce additional dwellings, and for which people on low to middle incomes, who do not already qualify for local authority housing waiting lists, will not qualify? This is a phoney scheme which will produce nothing.

Mr. Hayes

That is the shortest answer that the Minister of State has given all day.

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