I move amendment No. 1:
To delete all words after "Dáil Éireann" and substitute the following:
"acknowledges the achievements of the Government in significantly improving the housing grant assistance available to disabled and elderly persons in the past five years by:
—providing a substantial increase in combined funding for the disabled person's and essential repair grant schemes from €18.6 million in 1999 to €65 million in 2004;
—increasing the effective maximum grant available under the disabled person's grant scheme from €10,158 to €20,320 and the essential repairs grants scheme from €1,143 in 1999 to €9,523;
—increasing the maximum disabled person's grant available in individual cases from 75% to 90% of the approved cost of the works;
—increasing the level of recoupment to local authorities from the Department of the Environment, Heritage and Local Government from 50% to two thirds;
—retaining the disabled person's new house grant towards the purchase or construction of a new house;
—increasing the funding for the special housing aid for the elderly scheme from €7 million in 1999 to €11.6 million in 2004; and
notes that a review of the disabled person's grant scheme is being finalised by the Minister for the Environment, Heritage and Local Government and supports the continued actions by the Government to respond to the housing needs of elderly and disabled persons through a range of targeted initiatives
I wish to share time with Deputy Seán Power.
I am pleased to reply to the motion. The Government is committed to a strong sound and appropriate housing programme. An investment of €1.8 billion will be made in 2004 across the full range of programmes, with particular priority being given to programmes that assist those in most urgent need. The continued increased allocations for disabled person's grants, essential repairs grants and the special housing aid for the elderly schemes are evidence of this commitment.
I am well aware of the pressures on both the disabled person's grant and special housing aid for the elderly schemes. These are only two of a number of housing schemes operated by my Department and, in that context, it is necessary to balance the competing claims of the various schemes to ensure the available funds, which are limited, are directed to those whose housing need is greatest.
I will first put the disabled person's grant in context and outline the improvements that have been made to the terms and funding of the scheme over the past few years. Demand under the scheme has increased significantly in recent years. Regulations governing the scheme provide that a housing authority may pay a grant for the provision of additional accommodation or the carrying out of works of adaptation that, in the opinion of the authority, are reasonably necessary for the purpose of rendering a house more suitable for the accommodation of a member of the household who is physically handicapped and the works are necessary for his or her proper accommodation, or who is suffering from severe mental handicap or severe mental illness for which he or she is undergoing treatment and the works are necessary for his or her proper treatment and accommodation. The framework for the disabled person's grants scheme is laid down in the statutory regulations. The regulations are intended, as far as practicable, to give appropriate flexibility to local authorities.
There is no definite list of approved works that qualify for grant assistance and it is a matter for the local authorities to decide on the general criteria they apply. The regulations do not seek to provide a strict definition of "disability" for the purposes of the grant and, in recent years, more and more applications are in respect of age-related mobility problems. This trend is likely to continue. Unlike most other schemes of Government assistance, no system of prioritisation is laid down in the regulations on medical or income grounds. The only stipulation is that the grantee should occupy the house as his or her place of residence on completion of the works.
The regulations are loosely framed to allow authorities to deal with applications in a flexible manner, to open the grant to as many applicants as possible and to provide a service which the local authorities feel is appropriate in their own areas. This has been one of the strengths of the scheme. It does, however, make it more difficult to manage and to ensure the available funding is directed to those who need most assistance on mobility and income grounds. The major increase in demand for assistance under the scheme can be attributed to the improvements the Government has made to it over the past five years. The maximum grant has been doubled from €10,158 to €20,320, the percentage of grant available has increased from 75% to 90% of the approved cost of works and the level of recoupment to local authorities has increased from half to two thirds.
My Department notifies local authorities of a combined allocation each year to cover the payment of disabled person's and essential repairs grants. The terms of the grant schemes were not only significantly improved but the funding to cater for demand was also increased. In the period 1999 to 2003, expenditure on disabled person's and essential repairs grant totalled almost €245 million and covered 33,000 individual grants. The budget provision for these schemes this year is the highest ever at €65 million, an increase of €10 million on last year's provision.
It is a matter for individual local authorities to decide on the funding to be provided for the disabled person's and essential repairs grants schemes in their areas from the combined allocations notified to them for this purpose by my Department. The available funding of €65 million for expenditure in 2004 was notified to local authorities on 20 May last. Local authorities were advised to notify my Department if their allocation was inadequate or surplus to their requirements to facilitate the reallocation of funds to obtain optimum effectiveness from the funding. A small number of authorities will seek increased funding. The scope for reallocation of funds will be kept under ongoing examination in my Department during the rest of the year and all requests for additional funding will be considered in this context.
When calling for further increases in funding, Opposition Members forget that local authorities fund one third of each grant from their own resources, normally from their revenue account in the context of the estimates process. While all authorities are free to seek an increased allocation, this does not allow them to increase expenditure, unless there is a corresponding increase in the their own revenue contribution. Local authorities have become much more conscious of the need to proactively manage the disabled person's and essential repairs grants schemes in the recent past to ensure they remain within their allocation and do not put undue pressure on their own revenue accounts.
Many of them have introduced a system of prioritisation on medical grounds and have adjusted the level of grant available. It is essential that local authorities should continue to manage the scheme to ensure activity is related to their ability to fund their own contribution to the funding required while having regard to priorities in their area.
The special housing aid for the elderly scheme is administered by a task force set up in 1982 under the aegis of the Department to undertake an emergency programme to improve the housing conditions of elderly persons living alone in unfit or unsanitary accommodation. Various statutory and voluntary bodies involved in this area are represented on the task force. The scheme has, since its inception, been administered with flexibility and a minimum of formality in the interests of elderly persons whose housing conditions have been improved. However, over the years, health boards have developed a priority list to ensure the most urgent cases are dealt with as quickly as possible within the terms of the guidelines.
Typically, aid is available for necessary repairs to make a dwelling habitable for the lifetime of the occupant. The scheme was extended in 2000 to include the provision of suitable heating systems to meet the needs of elderly persons, where necessary. The community care departments of the health boards operate the scheme, using various mechanisms to carry out work under the scheme. The scheme is extremely effective. More than 51,000 cases were processed between 1982 and 2003. A further 1,395 jobs were under way by the end of 2003, the latest date for which figures are available.
The Government has significantly increased funding for the scheme from €5 million in 1997 to a record €11.6 million in 2004 in recognition of the valuable work being done. The allocations to the boards are determined by the task force from the funding available and are based not on the geographical spread of the population, but on the statistical returns received from the health boards showing the level of activity within the area, the number of applications on hand and the estimated cost of these applications. The success of the scheme is due, primarily, to active co-operation between the various statutory and voluntary bodies involved in its operation.
Apart from the disabled person's grant and the special housing aid for the elderly schemes, the essential repairs grant scheme, which is also operated by local authorities, provides grant aid for elderly persons towards the carrying out of works which, in the opinion of the local authority, are reasonably necessary to prolong the useful life of a dwelling.
Like the disabled person's grant scheme, significant improvements to the terms of the essential repairs grant scheme since 1999 have also led to increased demand for assistance. The maximum grant is €9,523. Expenditure on the scheme increased from €5 million on 966 grants in 1999 to €13 million on 2,842 grants in 2003. Recoupment costs have also increased from €1 million on 836 grants in 1999 to more than €11 million on 3,262 grants in 2003. That is more than a tenfold increase in recoupment.
A disabled person may qualify for a new house grant of up to €12,700 where a suitably designed or specially adapted new house is being purchased or built specifically to meet the needs of a disabled member of a household. There can be no doubt that the improvements made to these grant schemes and the significantly increased funding provided to meet increased demand are clear indications of the Government's commitment to meeting the housing needs of disabled and elderly persons.
The Government is very conscious of the need to ensure that the needs of disabled and elderly persons are taken into account in all aspects of housing policy. Local authorities have been asked to draft five-year action plans covering the full range of their housing programmes. These plans, to be agreed with my Department, will ensure that a fully strategic approach is taken by local authorities to the needs of all sectors of the community and will ensure that the requirements of disabled and elderly persons are specifically identified and better reflected in the authorities' housing programmes for the period in question.
In addition to the various schemes for the adaptation of existing dwellings the Government is making significant progress in the provision of new dwellings for elderly and disabled persons through the capital assistance scheme. The number of dwellings provided under this scheme for elderly persons in 2003 was 382, with grant assistance of almost €44 million, and 255 for persons with disabilities, with grant assistance of more than €29 million.
Members will be aware that a review of the operation of the disabled person's grant scheme is under way in the Department. I have already mentioned that in addition to the essential repairs grants scheme and the scheme of special housing aid for the elderly, the DPG is increasingly used by elderly people. This effectively means that this sector is now being catered for by three separate grant schemes. For this reason it is considered that the relationship between the disabled person's and essential repairs grants and the special scheme of housing aid for the elderly should also be taken into account in the context of the review. The response to increased demand for assistance under any grant scheme should not always be that we should "throw more money at it". It is often necessary to stand back and have a fresh look at the overall position and that is what we are doing now. We need to see if the substantial amounts of money we are already spending are being used to best advantage, if structures that have been established for the implementation of these schemes are still appropriate and if they are being operated in the simplest, most efficient and most cost-effective way possible.
We are conscious that people who apply for those grants often do so at a vulnerable stage in their lives and it is essential that the application and approval processes for those who are eligible should be as straightforward as possible. It is expected that the review will be finalised very shortly and details of any amendments, if necessary, will be announced thereafter.