Question:
27 Mr. Hayes asked the Minister for the Environment and Local Government the progress, if any, made concerning the implementation of the Government's affordable housing scheme established by his Department in 1999. [5808/00]
Priority Questions. - Local Authority Housing.
The affordable housing scheme which involves the provision by local authorities of additional new houses specifically for low income purchasers on land provided by the local authorities was launched last year as an additional measure to enable local authorities to assist low income house purchasers.
The development of suitable sites including, where necessary, the acquisition of land, and the planning and construction of houses, of necessity, requires some time to arrange. Some 40 houses were completed under the scheme by the end of 1999 which was less than I had hoped for. At present I understand a further 126 houses are under construction and more than 1,600 are at various stages of planning.
The affordable housing scheme complements the shared ownership scheme and many local authorities are developing housing projects to provide low income house purchasers with an option to purchase under either scheme. Transactions under the shared ownership scheme increased significantly last year with some 1,400 houses purchased under the scheme compared with 805 in the previous year.
Implementation of the provisions of Part V of the Planning and Development Bill will facilitate local authorities to acquire land to provide houses under the affordable and shared ownership schemes. I am confident that output under these schemes will reach the combined targets of 2,000 units per year set in the national development plan.
When?
Mr. Hayes
The Minister of State has just confirmed most people's expectation that this scheme is an unmitigated disaster, despite the hype and expectation he announced last year. Will the Minister of State confirm that 40 houses were built last year under this scheme, despite the endless radio and television publicity from him and his departmental colleagues? Only 40 house were built and that is a disgrace.
I have added another option to the social housing arena to help people in the present circumstances where prices are high due to the enormous demand.
Mr. Hayes
I just asked the Minister of State to confirm this.
This scheme is very advantageous to low income purchasers.
Mr. Hayes
Only 40 of them.
Anyone who knows anything about the construction industry knows house completions do not happen overnight.
Mr. Hayes
The Minister of State can sing that but he is in charge.
I was pleased that 40 houses were completed last year and that local authorities have many plans—
The Minister of State has modest ambitions.
However, I am disappointed that some local authorities have not prepared plans to avail of this scheme.
Mr. Hayes
The Minister of State has answered my question.
The Deputy asked the question so he should await the answer.
Mr. Hayes
I asked the Minister of State to confirm yes or no. I have another five questions and the Minister of State is waffling as usual. I have an opportunity to put questions to him every two months.
The Minister of State is in possession.
I do not mind answering questions.
Mr. Hayes
Does the Minister agree that scheme is unworkable in the Dublin area because of the price of building land? Will he tell the House if any local authority in Dublin has submitted a scheme to the Department? Will he confirm that this scheme will not remove one person from the housing lists in Dublin because the income required to secure a mortgage under this scheme would be at least £18,000? People earning that amount are not on the housing lists in Dublin, where demand is highest.
The Deputy does not understand how the scheme works.
That is because it does not work.
People earning less than £16,000 can get a subsidy for the repayment of the loan.
Mr. Hayes
That is the precise point, they are unable to get a subsidy.
Dublin Corporation plans two schemes which will provide 80 houses in Finglas south and 60 houses on Rathoath Road. The corporation has advertised both schemes and construction will begin this year. Plans have been drawn up for up to 100 houses on a ten acre site in Cherry Orchard. It has acquired 32 acres at Ayrefield, Malahide and Coolock, part of which will be used for the affordable housing scheme. In South Dublin County Council area there are plans for 50 houses at Brookview, Fortunestown Lane, Tallaght, costing £90,000 each.
Mr. Hayes
Not one person on the housing list could get one of those houses.
The potential in the Dún Laoghaire-Rathdown County Council area is negligible because of land costs. In Fingal County Council area, however, there are development proposals for 400 houses in a mix of private, social, and affordable housing in Blanchardstown; the architects and developers are drawing up plans for that. In Malahide the scheme includes 14 affordable houses and the contractors are already on site. In Swords, 21 affordable houses will be completed by the end of the summer. In Balbriggan there are nine affordable houses and the developer is on site. In my area, County Galway, 70 houses are under construction at Ballybane and 30 are finished.
Mr. Hayes
No doubt the Minister opened them all.
Building of a further 75 houses will commence this year. In Headford planning for 50 units is under way, along with 16 houses in Tuam. These are being sold at £72,000 each and it is expected that they will be occupied by September. Plans throughout the county provide for another 90 units. I compliment Galway Corporation and Galway County Council for being very active in availing of and seeing the benefits of this scheme. I could continue with other towns throughout the State.
The Minister should come clean.
Mr. Hayes
The Minister is wasting the valuable time of the House.
I was asked a question about the prices of houses and I have given the answer. Prices of houses included in the new scheme range from £65,000—
Mr. Hayes
Not in Dublin.
We had to find houses for people throughout the State.
Mr. Hayes
I will tell that to the people in my constituency.
That concludes Priority Questions. We must now move to the next question. I remind the House that ordinary questions are subject to a limit of six minutes each, with two minutes for the Minister in his initial reply while supplementary questions and their replies are confined to one minute. I hope Members will co-operate with the Chair.