Vol. 560 No. 3
112 Mr. Gilmore asked the Minister for the Environment and Local Government the details of the agreement reached with the trade unions and employer organisations regarding the building of 10,000 affordable houses; when the scheme will start; the way in which it will operate; the manner in which it differs from the affordable housing scheme announced in 1999; and if he will make a statement on the matter. [2518/03]
In discussions on a new national pay agreement, the Government has agreed to work with the parties to the pay agreement to develop an appropriate new initiative aimed at further enhancing the supply of affordable housing.
The details of the scheme have yet to be worked out. The parties to the pay agreement proposed this new initiative with the objective of increasing the supply of affordable housing by 10,000 units. It is envisaged that this initiative will differ from the 1999 affordable housing scheme in terms of the target group and the fact that it will be designed not to have an impact on the Exchequer or general Government finances.
Furthermore, it is intended that the initiative will not detract from the funding available for existing social and affordable housing programmes, or affect the momentum of delivery of these programmes. I welcome this initiative as another means of bringing more affordable housing on stream. In responding to the proposal, the Government is committed to an ambitious scale of delivery of affordable housing for the target groups concerned. We will work with the parties to the pay agreement to ensure that the output from all affordable housing schemes is maximised. It will be important more generally to ensure the continuation of measures to maintain the overall supply of new houses and ensure it remains at the forefront of all our policies.
I am surprised to hear such a degree of vagueness regarding the new initiative when the talks are reaching a conclusion. First, the Minister said the target group for this initiative would be different from the existing schemes. What is the target group for the new initiative? Second, the Minister stated the new scheme would not have an impact on the Exchequer or general Government finances. Will he therefore confirm that the intention is to fund this new scheme from the national pension reserve fund, as has been reported? Third, can the Minister confirm that it is agreed by Government that this initiative will deliver 10,000 additional dwellings – that is, in addition to the existing affordable housing scheme and other schemes? Over what period of time will this be done?
The difference, as I said, is that there will be no effect on Exchequer funding. At present there is a significant Exchequer input into social and affordable housing schemes in terms of resources to get them up and running. This scheme will target people who were close to being able to get mortgages but who were unable to do so due to the cost of housing. One of the principles underlying this is the cost of land, as the Deputy will know. He will know the State is looking at available resources in terms of land in State ownership throughout the country. I would not expect a huge amount of land owned by the State to become available suddenly, though there may be some resources in this area. What those are I do not know at present but let us wait and see what emerges.
I agree with the social partners, who brought this issue to the talks and who put great emphasis on affordable housing. I acknowledge that and will respond to it, but I do not wish to put it into another category. I want to ensure that over the next three years, the life of the programme, we begin to deliver more than 10,000 houses in the affordable sector. I believe we will do so and that we will be able to upscale the volumes coming through the system, not just because this issue has been discussed in the talks, but because I have changed other areas under Part V in recent legislation, as the Deputy will be aware. That should expand the delivery of affordable housing but we must look at some of the details involved. I welcome the fact that there is a concentration and focus on this but the exact details have not been worked out yet.
The Minister said the life of the programme will be three years. Most people would have thought the life of the next pay agreement would be 18 months. It is news to me that we are talking about a three year agreement now.
It will take 18 months just to start it.
I appreciate that the package is not yet published but I am surprised to hear the Minister for the Environment and Local Government, who has responsibility for housing, telling the House he does not know the details of a scheme which is the subject of discussion between Government and the social partners. Is there or is there not an initiative on housing? The Minister cannot tell us how many houses are involved or if it is going to happen. It will be houses out of thin air because there will be no Government money for it. There is some hint there may be State land involved, though the Minister is being cautious today in what he says about that. Will he tell the House what he knows about this scheme? There has been much press speculation and commentary. Will he tell us in simple terms who will benefit from this, how it will be paid for, who will build the houses and how many will be built?
I have answered most of those questions. The Deputy is well aware that a broad thrust has come into the talks from the social partners which concentrates on affordable housing, which I welcome. A figure was brought to the table by the social partners, who said they would like to see an increase of about 10,000 housing units being made available.
Is that agreed by Government?
The talks are not complete yet, as the Deputy knows. I cannot predict the final outcome of the talks but my understanding is—
Has the Minister agreed to it?
The talks are not agreed yet, as the Deputy knows. I am trying to be open but when the Deputy asks me about the detail of how we deliver this, that detail has to be worked out by me with all the deliverables in the system. I cannot do that until I—
Will that be in the text of the agreement?
Not in the detail. I do not expect it to be.
