Vol. 729 No. 3
4 Deputy Willie O’Dea asked the Minister for the Environment, Heritage and Local Government the timeline for the setting up of a new water company, the installation of water meters in domestic households and the introduction of water charges. [6937/11]
The memorandum of understanding between Ireland and the European Union and the International Monetary Fund commits Ireland to undertaking an independent assessment of the establishment of a water utility with a view to commencing charges for water services in 2012 or 2013. The programme for Government includes a proposal to create Irish Water, a new State company which will take over the water investment maintenance programmes of the 34 existing local authorities.
It is my intention that the assessment of the establishment of a water utility should proceed as a matter of priority. The transfer of functions from local authorities to the new State-owned water utility, as set out in the programme for Government, will require significant legal and administrative changes. The independent assessment will make recommendations for the establishment of the new organisational structure. It is envisaged that the independent assessment will be completed by October this year. With the Minister, Deputy Phil Hogan, I will be preparing proposals for Government consideration. I will provide further information on a timescale for the establishment of the utility following that Government consideration.
The programme for Government also proposes the installation of water meters in individual households and the introduction of water charges based on usage above a free allowance, which is an important point. My Department is preparing a strategy to implement these proposals, including a strategy for the procurement and installation of meters. It is envisaged that the installation of meters will commence in 2012 to be managed by the new State-owned water utility.
I congratulate the Minister, Deputy Phil Hogan, and the Ministers of State, Deputies Willie Penrose and Fergus O'Dowd, on their appointments and wish them the very best. I take the Minister of State, Deputy O'Dowd's point on the assessment and moving as quickly as possible. What I first want to ascertain is when approximately he envisages the new water company will come into existence. Second, if I understood him correctly, the roll-out of the water meter installation programme will commence in 2012. Approximately how long will it take to complete? Third, when can we expect to see water charges introduced? I note the Minister of State says a certain amount of water will be provided free and that people will be charged for usage in excess of that amount. Am I correct in stating it will not be possible to introduce water charges until such time as the full meter installation programme has been rolled out?
First, we want to set up the water authority, Irish Water, as soon as possible. The independent assessment will be completed before October, but I understand there will be an interim report before then. I hope, therefore, the legislation will be ready before January next year.
Second, I understand it could take up to three years in total to install water meters in every household. There are difficulties in certain areas and with certain housing types; for example, it can be very expensive to install meters where people are living in blocks of apartments. When metering will commence is a matter for the Ministers involved.
The only reason this is happening is that the memorandum of understanding signed by the previous Government with the IMF and the European Union forces it upon this and succeeding Governments — it is the origin of the charges.
Was it not included in the Fine Gael Party manifesto? It was a commitment given by Fine Gael also in the manifesto it launched to the people.
We had no choice.
No, Fine Gael indicated in advance of publication of the IMF deal that it intended to do something along these lines. In fact, at Question Time in October last Deputy Hogan, the new Minister, said he agreed with the idea of controlling the use of water because it was a finite resource. Therefore, let us dispel that notion.
The Minister of State has said it will take three years from the beginning of 2012 when the Government intends to begin rolling out the water metering programme, but he was not able to tell me when we could expect to see water charges introduced. If a certain amount of water will be provided free and use of water beyond that amount will incur a charge, how can charges be introduced before a system has been rolled out?
When the last Government signed up to have charges——
I want my questions answered. Many are interested in the answers.
I will answer the questions put. The years 2012 and 2013 were mentioned in the deal agreed by the last Government. With regard to how meters will be installed and the problems in that regard, from the briefing I have received approximately 1,800 people will be employed for a period of three years to install meters in every house in the country. I presume that when all of that has happened, there will then be a decision on charging. The whole idea in metering is to conserve water. However, the independent assessment will examine the issue of value for money under the meter installation programme, as well as other matters.
5 Deputy Brian Stanley asked the Minister for the Environment, Heritage and Local Government his plans to provide assistance to local authorities to address the problem of ghost estates; and if he will make a statement on the matter. [7071/11]
The high level expert group on unfinished housing developments, established in October 2010 following the publication of my Department's national housing development survey database, is identifying practical policy solutions to address, effectively and promptly, the difficulties associated with unfinished housing developments. On foot of the interim analysis and findings of the expert group which were published on 17 February, an initial funding provision of €5 million is being made available to local authorities to deal with immediate safety issues and works to improve living conditions for existing residents. My Department has made the necessary arrangements for local authorities to make applications for funding for the most urgent and serious cases.
The initial findings of the expert group indicate that action on unfinished housing developments will require the following: a collaborative approach by all stakeholders working together to co-ordinate their efforts to resolve the issue of unfinished developments; an immediate focus on public safety aspects and critical issues affecting residents of developments; a structured and prioritised approach by local authorities supported by central resources; the use of site resolution plans and, where appropriate, innovative options such as resident and community involvement, co-operatives and self-build within the resolution process; and national co-ordination and monitoring of regionally and locally organised efforts to tackle the problem.
I expect the expert group's final report to be submitted to me this month. I will consider its findings and recommendations as a matter of urgency and will bring proposed actions and recommendations to the Government for approval.
I congratulate the Ministers of State, Deputies Willie Penrose and Fergus O'Dowd, and the Minister, Deputy Phil Hogan, on their appointments. I will have to be careful I do not get squeezed between the two midlands constituencies, with Carlow-Kilkenny on one side and Longford-Westmeath on the other.
The €5 million site resolution fund will be totally inadequate. Some 2,846 developments were inspected and, of these, work is ongoing in only 15%. In County Laois alone, there are 43 estates with partially built houses in occupied estates and a further nine estates in which no houses have yet been occupied. Overall, in 2,846 developments in the State, some 34,000 houses are complete or almost complete but vacant. That is the point I want to get across. Some 34,000 houses which are either finished or almost complete are lying empty, which is a scandal at a time when there are thousands on social housing waiting lists.
The former Minister of State with responsibility for housing, Mr. Michael Finneran, met representatives of British housing associations who were considering purchasing some ghost estates in Ireland to rent back to local authorities. Does the Minister of State, Deputy Penrose, consider that proposal adequate? Will he consider providing capital funding for the provision of social housing?
All Members are aware that local authorities have growing housing waiting lists because of the financial pressures on people. The banks have queues of people seeking mortgages, many of whom are unsuccessful. The queues outside dole offices on signing-on day are getting longer. Sinn Féin proposes that ghost estates offer a potential solution, or partial solution, to these three problems, by providing employment for former construction workers, cheap social and affordable housing for people on local authority waiting lists, and assistance in getting people back to work.
I thank the Deputy for his question and am delighted to see a fellow midlander across the floor. Some of the points he makes are worth exploring. However, the first concern is the public safety aspect in terms of building compliance and health and safety. There are some 400 estates requiring that attention, which is a huge number. Phase two involves collaboration and co-ordination, that is, getting local authorities, banks, owner-developers — where they are traceable, which is a major concern — and communities to work together to develop specific and workable plans for particular sites.
Local authorities were to have submitted their findings by 8 April. The findings are coming in thick and fast and we hope to have them all shortly. What is immediately clear is that the types of projects forwarded by local authorities to date relate to such issues as the capping of water pipes and manholes, connecting street lighting, and fencing off building sites containing partially built houses and drains. Finishing out some of the units to extract value from sites is something that will have to be pursued. Another possibility is finding alternative uses, such as converting them to community centres or health centres.
I will meet NAMA representatives next week and will explore all these issues with them. NAMA's remit is primarily commercial but, where possible, I will examine whether there can be a social dividend for the public, which has been extremely helpful in this regard.
In respect of housing developments partially owned by banks and where people bought homes two or three years ago but still do not have deeds, will the Minister of State use the opportunity of his meeting with NAMA representatives and any further communications with the banks to address that issue? If the people own the banks and we represent the people, surely we in this Chamber have some control over the matter. I urge the Minister of State to take that opportunity.
Had certain legislation been passed we might have reaped a social dividend, but it is slow. Perhaps Deputy Stanley will contact me directly in advance of next week setting out his proposals. I will pursue these issues with the NAMA representatives with a view to ensuring people get that to which they are legitimately entitled.
6 Deputy Catherine Murphy asked the Minister for the Environment, Heritage and Local Government the changes he will make to the system of bonds, whereby local authorities would in future normally insist on a requirement that bonds remain in place until the housing estate is taken in charge by the local authority, or in the case of apartments, until the development is complete and transferred into the control of the managing authority; the number of local authorities that have not insisted on such a practice to date; the number of housing and apartment developments involved; and if he will make a statement on the matter. [7011/11]
Sections 34(4)(g) and 180(2)(b) of the Planning and Development Act 2000, as amended, enable planning authorities to attach conditions to grants of planning permission for developments requiring the provision of financial securities sufficient to safeguard the satisfactory completion of essential infrastructure and amenities in those developments, and, if a development is not subsequently completed satisfactorily, to apply a security given under section 34 for the satisfactory completion of that development.
In line with advice provided in my Department's Development Management Guidelines of June 2007 and policy guidance as set out in Taking in Charge of Residential Developments of February 2008, the use of such conditions is followed generally by all planning authorities. Securities are lodged with the planning authority until such time as either the authority is satisfied that the development has been completed in accordance with the terms of the planning permission or the development is taken in charge.
It is a matter for the planning authority to determine the level and type of security that will be required for each residential development. The amount of the security, its duration and the terms on which it is required to be given should enable the planning authority, without cost to itself, to complete the necessary services to a satisfactory standard in the event of default by the developer. My Department does not keep statistics on the inclusion of such bond or security conditions as part of granted permission.
This issue has been considered by the high-level expert group on unfinished housing developments in the context of housing developments that have stalled and remain unfinished and where there are difficulties in securing completion of the development. I expect to receive the final report of the group in the near future. I will consider its findings and recommendations which I understand will include measures to address the issue of bonds and securities in respect of the satisfactory completion of developments.
I extend my congratulations to the Minister, Deputy Hogan, and the Ministers of State, Deputies Penrose and O'Dowd, on their appointment. The question arises as to why there are any ghost estates if the provision to which the Minister of State referred is as satisfactory as he indicated. The practical experience in many cases is that a bond was provided on foot of a planning permission for a period of seven years but the developments have not been completed within that timeframe. The difficulty is that there is little consumer protection. If a developer goes into receivership, for example, the bond is quite low in the pecking order of creditors. The receiver will generally try to negotiate the bond down and the shortfall must then be made up by the public purse.
A serious problem also arises where there is an inadequate bond and where the developer goes back to the bank and the latter refuses to renew the bond. The local authority is not then in a position to force developers to finish estates because if they cannot get money for a bond they will not get money to complete construction. It is a circular issue and the people who are ultimately paying the price are those who bought homes in these estates and have to live there. The money that has been provided, although welcome, will fall far short of what is needed. The Exchequer should not have to pick up costs that are rightly the responsibility of private developers. Is there anything in the area of consumer protection that can be strengthened to address this issue? Will the Minister of State insist that bonds remain in place until the estate is taken in charge by the local authority or the management company?
There are clearly issues in regard to bonds, especially where developers can no longer be contacted or have gone out of business. This is a particular difficulty when working with an insurance bond rather than a cash bond, the latter being far more accessible and liquid. Bonds were never designed to deal with the nature of the difficulties that have arisen. Their intended purpose was to ensure that all work would be completed in accordance with the terms and conditions of the planning permission. The duration of bonds is also an issue. I agree with the Deputy that we must not have a situation where local authorities, which are already cash-starved, are picking up the costs.
The expert group on unfinished housing developments is of the view that the issue of securities and bonds merits further examination, including the use of liquid security such as cash deposits, coupled with something that may meet the Deputy's approval, namely, careful phasing of developments in a sequential manner to minimise the working capital impact. I will carefully consider all the recommendations in the group's final report.
7 Deputy Willie O’Dea asked the Minister for the Environment, Heritage and Local Government if he will proceed with independent investigations into potential planning irregularities in a number of local authorities; and if he will make a statement on the matter. [7021/11]
The planning review announced last year by the former Minister for the Environment, Heritage and Local Government, Mr. John Gormley, was intended to assess the application of planning legislation, policy and guidance within the development plan and development management systems at local level and to inform further policy development in these areas. A number of planning authorities, representing a broad geographical spread of urban and rural areas as well as large and small authorities, had been selected to assist in the review of policies and practices by reference to several cases raised with my Department.
The programme for Government includes, inter alia , specific commitments to co-ordinate national, regional and local planning laws to achieve better and more co-ordinated development which supports local communities, to develop a coherent plan to deal with the issue of unfinished estates, and to ensure there is adequate access and participation by citizens and public representatives in decision-making and policy formation. The resources of my Department will be directed primarily towards supporting the implementation of the Government’s commitments in these areas. I understand the concerns of some of the public regarding some actions taken by individual local authorities. At present I am reviewing in detail a number of specific complaints, following the initiation of the process by the former Minister, Mr. John Gormley.
When this review is completed, I will issue a public statement outlining the complaints at issue, my response and any appropriate actions to be pursued in regard to further policy development and guidance, in line with commitments in the programme for Government.
There should be a better division of responsibility in the Department of the Environment, Heritage and Local Government as the Minister of State, Deputy Penrose, appears to be carrying all the weight. However, I thank the Minister of State for his reply and seek clarity thereon. He stated that he intends to review the independent investigation and the extant material and in light of that review, will then decide whether an investigation will take place. Is that correct?
The local authorities have replied to the various specific issues and in conjunction with my Department, I will review those replies after which I will publish that statement. As for any recommendations that may arise therefrom, Deputy O'Dea is familiar with section 30 of the Planning and Development Act 2002 and it is important to keep political involvement some distance away from any impact on the planning process. The section states: "The Minister shall not exercise any power or control in any particular case with which a planning authority or the board is or may be concerned." Essentially, as soon as the matter is finalised, I intend to publish the report. If any recommendations arise therefrom, I note that opting for an independent review would necessitate considerable expenditure. In straitened times when money is particularly scarce, as some of my colleagues have pointed out in the Chamber earlier, there are other things on which money could be expended. I have every confidence that the Government will deal with the matter by bringing forward and publishing a report comprising the submissions made and my conclusions reached in respect thereof.
After one brief supplementary question, I will not pursue the Minister of State, Deputy Penrose, any further in this regard. The Minister of State will agree that the changes made in the planning legislation of 2010 put responsibility on local authorities in respect of evidence-based planning and responsible rezoning. This legislation was specifically drawn up and designed to deal in part with the problem relating to ghost estates. I seek the assurance of the Minister of State that there will be no changes to revert to the status quo ante.
Deputy O'Dea may rest assured in that regard as the 2010 Act constitutes a significant advance in these terms and will deal with many of the issues. This is the reason the process will be opened up more widely as part of the programme for Government to get greater public consultation and input from community groups. I assure the Deputy that the 2010 Act will be the basis on which the Government will move forward. It will be neither emasculated nor diluted but will be built upon, as it is worthy legislation. Obviously there may be areas in which Opposition Members will find difficulties and perhaps they will table amendments. The Government will listen to them all in due course.
8 Deputy Thomas Pringle asked the Minister for the Environment, Heritage and Local Government if he will raise the income limits for housing applicants contained in the Housing (Miscellaneous Provisions) Act 2009 where Donegal County Council will not accept onto the housing list applications from single applicants on incomes over €20,000 per annum and €24,000 per annum for households over more than one person. [7045/11]
The Housing (Miscellaneous Provisions) Act 2009 provides for a new process of housing needs assessment for applicants for social housing support. Until now there have been different practices in housing authorities regarding the way in which applicants for social housing support had their income means-tested. The Social Housing Assessment Regulations 2011, which came into force on 1 April 2011, standardise both the income limits and the definition of income.
The Social Housing Assessment (Amendment) Regulations, made on 29 March 2011, amend the original regulations and provide for a general increase of €5,000 in the income bands. I am sure the Deputy will be delighted to hear the new increased limit in the Donegal authorities' band is €25,000 net income for a single-person household, with a maximum limit of €30,000 net income for a household with three adults and four children or more. Net income is defined in the household means policy approved under the regulations as gross income of all kinds, including most forms of social welfare benefits or assistance, less income tax, PRSI and the universal social charge. Child benefit also is disregarded, as is most temporary income.
Deputy O'Dea was right. How does that questions lottery operate?
I join in the congratulations offered to the Minister and Ministers of State on their appointments. It definitely appears as though the Minister of State, Deputy Penrose, is carrying all the weight today in the Chamber. I welcome the increase in the income limits that was introduced last week and I had submitted this question just before I learned of them. However, placing such income limits on applicants for social housing at such a low level will place an unfair burden on people in low-paid jobs. Does the Minister of State agree that having such low levels will bring difficulties in light of the difficulties people are experiencing in accessing finance to purchase houses, even though house prices have collapsed? The difficulties in raising finance and mortgages in the market place have been well documented in this House and having such low income limits will have a seriously detrimental effect on people who are in great need of housing and where the private housing market is substandard and does not provide for their needs.
I am plainly surprised by that response as someone who was a member of a local authority for almost 20 years. Income limits were in place and a person with €25,000 net had a significant income, as it is net of all the charges. However, the overall impact of the new arrangements and amended regulations is expected to result in an increase in the number of households eligible for social housing support. I acknowledge this may lead to a lengthening of waiting lists but I believe it is important to broaden the base from which social housing tenants are drawn to promote sustainable communities. In tandem with the progressive implementation of the provisions of the Housing (Miscellaneous Provisions) Act 2009, I intend to undertake a wider review of social housing policy in general. This will examine how best the needs of those on housing waiting lists can be met in the context of further development of sustainable communities, while taking account of new housing options and the level of available funding and resources. This review will, of course, include an examination of the impact of the new housing limits.
I should emphasise that people who already are tenants of local authorities will not be affected by the new limits. They will not be reassessed or anything like that and consequently, only new people joining the housing lists will be assessed. The fact that I increased the limit by €5,000 immediately is indicative of my desire to ensure there will be sustainable communities. Moreover, new incremental purchase schemes and similar measures are being introduced and hopefully this is where some of the aforementioned people will be able to participate. Although, as the Deputy is aware, they will not jump up the list because of the time period, they may have an alternative avenue on which to get onto a housing waiting list and then avail of some of the other policy initiatives that hopefully will be of benefit to them.
I hope the increases announced last week will improve this situation. Certainly however, the view of Donegal County Council was that a large number of people on the housing list would be affected. Members will monitor its implementation in the coming months to ensure this is not the case.
Yes, I will do that. I note that a number of other colleagues across the floor of the Chamber also had concerns in this regard and there is an increase for them as well. I certainly will keep an eye on it. While a small number of people on the housing lists in certain local authorities may fall off, I suspect the number will be few. I checked briefly the Deputy's local authority and I do not believe he will encounter too many people who will fall through the net. However, it certainly is a matter that I will keep under review and of which I will take cognisance to ensure that those who are on the waiting list do not suddenly lose their priority. I am open to suggestions from colleagues as to how matters can be improved in a social housing policy review on which I intend to embark in the coming months. However, I may as well be honest with the Deputy by noting that the unfinished housing estates will take up a considerable amount of time.
