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Dáil Éireann debate -
Thursday, 26 Jan 2017

Vol. 936 No. 2

Leaders' Questions

There have been many announcements by Government of initiatives to address the housing crisis. Nevertheless, there remains an ongoing crisis at all levels across the housing sector. In Dublin alone, 1,200 families - including 2,500 children - are living in hotel accommodation. Last November, there were 6,985 men, women and children in emergency accommodation throughout the State, a 31% increase on the number in November 2015. Unfortunately, there is no evidence of additional supply coming through by way of the provision of social housing. This has led to an over-dependence on the housing assistance payment, HAP, scheme, which uses the lower end of the private market to supply homes to families. Rents are at an artificial high across the country notwithstanding the welcome legislation that was passed last December to limit rent increases to 4% in particular areas. Unfortunately, that measure will not alleviate the problem in the short to medium term because it addresses only future increases and does not deal with the existing artificially high rents across the State.

Simon Communities of Ireland delivers supports and services to more than 8,300 people every year who are experiencing homelessness or are at risk of becoming homeless. Today it published its latest Locked Out Of the Market report illustrating the stark realities of rental increases across the country and how, despite modest increases in social housing payment caps, 80% of rental properties are beyond the reach of rent supplement and HAP recipients. Private rental supply, the report notes, is down 44% since May 2015. The report shows the average number of properties available to rent decreased by 19% in the 12 months since the last report in August 2015. There is a growing gap between rent supplement and HAP caps and current market rents. The report confirms the number of properties available to that cohort is shrinking, particularly for individuals and couples. Simon Communities Ireland personnel work at the coalface and they are extremely worried that if things continue as at present, the crisis will deepen in the short term.

Today's report from Simon Communities of Ireland is further evidence that the imposition of rent caps should not have been limited to Dublin and Cork. I assure the Minister that the crisis is affecting all parts of the State. In my own constituency of Mayo, I have families coming to me on a weekly basis seeking help to find homes. These people have given up hope of ever getting a place in social housing and are seeking my assistance to secure a private rental property. It is next to impossible to find a three-bedroom family home in Castlebar that falls within current HAP limits. Westport is a no-go area as far as affordable accommodation is concerned. More must be done and done soon if we are to meet the challenges presented by an artificially high rental sector.

Simon Communities of Ireland has called for the rent certainty measures to be extended as a matter of priority. Will the Minister indicate when the reviews of areas outside of Dublin and Cork will be completed and when the rent increase limits will be extended to those areas? What does the Government intend to do to address the supply issue? Without more supply, the problem will only get worse.

I thank the Deputy for raising this important issue, to which the Government is giving intense priority and in respect of which we have devised solutions for the short, medium and long term. In terms of social housing, we made an unprecedented commitment to the delivery of 47,000 new homes. These are to be constructed through various agencies. That is a massive commitment to social housing, which was neglected for more than a decade.

Short-term measures to address the housing situation include the extension of the HAP scheme to Dublin from March. Some 12,000 families were housed last year under that scheme. Under the homeless HAP initiative launched by the Minister for Housing, Planning, Community and Local Government, Deputy Coveney, 550 families in Dublin were accommodated last year. That is a significant intervention. Last year, 1,000 homes were purchased to provide immediate accommodation. In addition, there is a commitment to provide 350 rapid-build homes in Dublin. In regard to the rental cap, the Minister will very soon indicate the areas of extension beyond the current locations of Dublin and Cork cities. We have seen very high increases as a result of supply constraints. The rental cap is a short-term measure to deal with that and will provide certainty for people by imposing a cap on rental increases.

On the wider front of housing supply, it is encouraging to see housing starts showing considerable growth at last, in Dublin and in other parts of the country. The numbers remain well short of where they need to be but the measures the Minister is taking to streamline the planning processes and make it easier to access finance and to build will assist in accelerating the housing supply. We all agree that increasing supply is the key solution, both in the private sector and the public sector. We allowed a situation to develop where public sector direct provision fell away to levels that were way below those of any other country while, at the same time, relying too heavily on the private rental sector to deal with social housing. The measures the Government has introduced will help to restore the balance in that regard. We have a balanced set of measures that are being rigorously driven forward and which include provision for quarterly reporting. The Minister is intensely aware of the huge number of families that are depending on the success of his strategy.

I thank the Minister for his reply. We have had major commitments from the Government in terms of building housing, but they are slow to translate to action. There are still 2,000 vacant homes awaiting refurbishment across the various local authorities. The housing repair and leasing initiative that was piloted in Cavan and Waterford seems to be going well, but it needs to be extended. My constituency would certainly benefit from such an initiative.

Simon Communities of Ireland has called for a twice-yearly review of the HAP increases. Will the Government commit to facilitate that, given the acute challenges outlined in today's report? Out of the ten areas covered by the study, which included major towns and cities, only eight properties were available for rent to single people and only 11 were suitable for couples. There are plenty of initiatives being launched but we are not seeing the effect in increased supply. A twice-yearly review of the HAP increases should be initiated.

There has been a significant increase in the level of activity under all social programmes. The number of people who will be accommodated under those programmes in the coming year is 21,000, an increase from 14,000 two years ago. There is an intensification of efforts in this regard and it is delivering in terms of supply. The concept of extending the homeless HAP scheme beyond the current areas is under active consideration by the Minister and it is hoped to do so later in the year.

On rental reviews, the Minister will examine the effectiveness of the relevant measures based on the evidence. We need to get supply moving and focus on the initiatives in the areas of purchase, rapid build, the homeless HAP scheme and so on. Those measures offer a particular targeted intervention for the categories of persons about whom we are especially concerned, namely, the 1,200 families living in hotel-type accommodation. Those are areas of intense concern and the Minister is focused on delivering for the families concerned.

Since he formally took office as President of the United States, we have had a flavour of the new White House policy under Mr. Donald Trump. Yesterday, he signed executive orders to build a wall along the US border with Mexico and to crack down on cities which shield undocumented immigrants. Late last night, in a flagrant disregard for all international human rights protocols, the President said that torture works. It is extremely worrying that some of the most dangerous and divisive rhetoric heard during the US election campaign is now being followed through with actions.

Let us be clear. It is not for us here to judge who the US people choose as their President. That is the prerogative of American citizens. They have made their choice and we respect that but we can and should voice our concerns when there is a blatant disregard for all generally acceptable political behaviour. As a party of equality, Sinn Féin has no truck with misogyny, racism or homophobia.

What about the fund-raisers?

I do not think the Minister needs to be reminded that the issues at play here are very serious.

Has the Deputy got something to say?

The Taoiseach will be in the White House-----

Sinn Féin will have to give the money back.

Trump went to the Sinn Féin fund-raiser.

The Taoiseach will be in the White House in a matter of weeks on St. Patrick's Day. This is a very important day for the Irish in America. Will the Minister tell me what message the Taoiseach will convey to the US President on our behalf on all of these matters? A particular focus of the Government, as we have said before here, has been the very real issue of the estimated 50,000 undocumented Irish citizens in the United States. These concerns were voiced yesterday by Ciaran Staunton, the president of the Irish Lobby for Immigration Reform in the US. The new Administration's stated desire to tackle so-called sanctuary states is deeply alarming. The Irish International Immigrant Center in Boston said yesterday that President Trump's actions could contribute to a growing anti-immigrant sentiment in the US. The Irish Government has raised the issue of the undocumented in the past and I appeal to it to persist in this in the time ahead. Irish America has always been the bridge between this island and policy-makers in Washington and there is alarm there just as there is here. It is imperative that efforts to resolve the plight of the undocumented Irish living in the US continue. I urge the Government to adopt a stance with the President that reflects that need. We also need to hear the Taoiseach articulate the politics of upholding equal and respectful treatment of all across the globe regardless of race, gender, background or sexual orientation. What message will the Taoiseach bring to the White House and what efforts will be made in respect of the undocumented?

Will he send back the cheque?

The Minister, Deputy Bruton, has three minutes.

I thank Deputy McDonald for the question.

Sending back the cheque is the first step.

The Minister, without interruption.

The first thing is that Ireland's priority in dealing with any Government, whether newly elected or otherwise, is to ensure we serve the interests of Irish citizens. We have had long trading, political and social connections with the United States and they continue to be really important to us in terms of employment, social connection and the political handling of issues such as the one the Deputy raised on the undocumented Irish. We deal with countries with whose politics we do not always agree. In terms of pursuing the interests of Irish citizens, we have to be conscious that in every state, people will select people whose policies we do not all agree with. Ireland upholds the highest standards in all international organisations in terms of the protection of rights and so on and it will continue to do so.

Specifically on the issue of the Irish undocumented, there have been meetings, as the Deputy knows, between the Taoiseach and the Minister for Foreign Affairs and Trade, Deputy Flanagan, and representatives of the US Government at all levels, including the Houses of Congress, the Senate and the Administration. Those will continue to be pursued because it is a really important area of public concern for our citizens, which the Government has an obligation to pursue. We will continue to do that. We will support organisations that deliver front-line services and community care to Irish emigrants in those situations through emigrant support programmes and otherwise.

The Deputy expressed concerns about some of the campaigning that occurred and some of the policies that might ensue. Our primary interest is to make sure that in some of these new policy directions, we work to ensure that Irish citizens' interests are protected. There are changes in many areas including migration policy, tax policy and at home. These are elements on which we need to be alert to the potential implications for us. I assure the Deputy that all parts of the Government are very alert to those elements. It will protect Irish interests, the interests of Irish people and will work with the new Administration and the wider interests on Capitol Hill, which remain a fundamental part of long-term decision-making. The US constitution contains the concept of balance of power and it is important that we relate to all sections of the administration and democratic representation within the US. If we pursue that, as the Taoiseach has done consistently, we will protect the interests of Irish citizens and, in particular, the undocumented Irish for whom Deputy McDonald has expressed a particular concern.

The Minister does not have to convince me of the value of our relationship with the United States or with Irish America.

It has been financially very beneficial.

Sinn Féin should send it back to Trump.

Those who have kept-----

Was that a brown envelope-----

The Deputy, without interruption from any side.

I thank the Leas-Cheann Comhairle. I shall begin arís and with feeling, if the Fianna Fáilers can contain themselves. The Minister does not have to convince me of the value of that relationship. Irish America has kept faith with this country and has been a valuable advocate, not least in respect of the Irish peace process. I am glad to hear the issue of the undocumented is high on the list of political priorities. Efforts and supports for emigrants in the United States need to be stepped up. This issue must be raised with President Trump. I refer to the 50,000 people for whom a return journey home for any family occasion such as funerals or births is impossible. We know their plight is very serious. I will reiterate, with absolute respect to the American electorate who have exercised their democratic right, it is very important that the Taoiseach is explicit in expressing the values that we, as Irish people, hold.

The reason I am running over time is because those in the Fianna Fáil benches-----

I have allowed for that.

-----were so ignorant and disruptive.

I have allowed for that.

I thank the Leas-Cheann Comhairle for that.

I assure the Deputy the Government will take every opportunity to present that case. The Minister, Deputy Flanagan, will be in Washington at the end of the month. The ambassador, Anne Anderson, has already convened a stakeholder meeting in respect of the concerns that Ireland has in respect of Irish immigrants. The President has extended an invitation to the Taoiseach, and the Vice President will be hosting the traditional St. Patrick's Day events. This is an opportunity for Ireland to exercise influence on the incoming Administration, as well as continuing to maintain the important contacts that have been a very important element of the Irish-US relationship over many years. New directions present challenges for us but we have seen that Ireland has been able and resilient in adapting to changes. We will prove again that in this situation we will adapt to the new environment and protect our citizens effectively though diplomatic and direct political channels.

Is it not time to simply admit that the Minister, Deputy Coveney's Rebuilding Ireland plan is a total and abject failure that has failed utterly to deal with the escalating housing and homeless emergency? For over a year now, the Government has been talking about this plan as a panacea for the crisis yet day by day, the situation gets worse not better. Today we have highlighted that we have reached a shocking and unprecedented level of 7,100 people in emergency accommodation, including 2,500 children. The housing assistance payment limits, which the Government has put in place and which are a central pillar of its entire so-called solution to the housing crisis, are grossly inadequate for the extortionate rents that are now being charged. In my area and in the whole of south Dublin, there is one one-bedroom apartment within the limits.

There are two two-bedroom residential units within the limits today. That comes against the background of an absolutely disastrous crisis.

To add further insult to all of that, the Government has flogged or allowed to be sold via NAMA and the banks we bailed out vast amounts of property and building land where these companies, which make extortionate profits and pay no tax on them, can jack up rents and make people homeless. In my own area, just before Christmas, on 23 December, a vulture fund that bought an apartment block put up rents in the entire block by up to 175%. That was on the day the legislation was supposed to come into force. The vulture funds doing this are paying no tax. Last year, Cerberus had €77 million in profits but paid €1,900 in tax. Lone Star paid $34.6 million in dividends to shareholders abroad.

The Government has allowed that to happen and its policy has actively facilitated it but now it plans to worsen the issue by selling two thirds of public land in key sites such as Shanganagh Castle in Shankill in my own area, the Oscar Traynor Road site and other publicly owned sites. It will sell virtually the whole of the Irish Glass Bottle site or Cherrywood via NAMA and we will only get 10% back on sites. Will the Minister stop this? Will he stop digging the hole that is causing such misery for people suffering from the housing crisis?

I call the Minister.

Will the Government change tack?

As I indicated to Deputy Lisa Chambers, this problem requires a short, medium and long-term solution. The Minister has introduced a strategy that is barely six months old and it is already having an impact. The first step was to increase emergency accommodation. There are 250 extra beds and 2,000 emergency beds in Dublin. We have had to step up the provision for emergency accommodation but it is very much an interim measure. The Deputy knows that the programme commits that by the middle of this year, there will no longer be families in bed and breakfast-type accommodation. There is a very clear commitment and although there is a transition, we are moving on.

The Minister has also dealt with the point of rent certainty. We now have in place caps on rents in Dublin and Cork that will later extend to additional areas. Most important, the Minister has committed to a supply line that we have not had for public housing. As I indicated to Deputy Chambers, there will be 47,000 social homes. We are also extending the housing assistance payment, HAP, which despite the suggestions from one source today accommodated 12,000 families last year. This is working and the HAP homeless element accommodated 550 families in Dublin. This is working but we must continually roll it out. It will be extended, as the Deputy knows, in March.

With sites such as the one at Oscar Traynor Road in my constituency, under the Minister's plan, that site, which has been derelict for 40 years in public ownership, will be built upon. We will have affordable rental homes, social homes, starter homes and a variety of houses supplied to the market to meet the huge needs we all know about. The alternative strategy of sitting on our hands, as we have done for 40 years, and the site has been derelict for that time, is not a solution to the housing crisis. We are moving to get building happening. There is a welcome rise in housing starts in Dublin and we need to build on that. The Minister's strategy is committed to that approach.

The facts speak for themselves. The number of people in homeless accommodation has increased by 91% in the past two years and 34% in the past year since this Government came to office. How the Minister can possibly claim it is working is beyond me.

There is the issue of the disposal of sites like those on Oscar Traynor Road, Shanganagh in Shankill or the NAMA sites in Cherrywood and so on. If these are given to private developers, how will they be affordable? They will not. The Government has not defined affordable housing. Public housing is affordable but sites that previously would have seen 100% public housing will now only have one third with public housing, with the rest controlled by the private sector. They will control the rents or property prices, which will not be affordable.

That is not true.

It is true. It is a fact. What does the Minister say about the Irish Glass Bottle site? Only 10% of that site - a NAMA site for which this country paid a bitter price - will be social housing. Why is it not 100% social housing?

Thank you, Deputy.

In my area there is talk about provision.

I call the Minister.

We had 290 extra so-called social units but there were only 74 real new units while 560 extra people joined the list. That means twice as many people joined the list as units provided.

Deputy, others will want an opportunity to speak later.

Deputy Boyd Barrett wants to cling to some ideological position about how we should solve the housing crisis. It will not be solved by 100% social building. That will not happen. Getting the 47,000 units will take time.

We have been hearing that for a long time.

Let us be absolutely honest.

It is a good policy. Mixed housing is good.

We need mixed housing and on those sites there will be social homes with a differential or traditional local authority rent and those with affordable rent of 70% of commercial market rate. That is designed to be affordable for families and not just those on housing lists. It will apply to another tranche of many families who are finding it increasingly difficult to get housing. The affordable rent is directly targeting a group that needs support and the remainder will be private housing. We need to see private housing develop because many families aspire to home ownership and a starter home built on public lands will provide more affordable access for them than any of the alternatives. It is a creative solution to a challenge and I commend the Minister for it.

The Minister is clinging to a failure.

I am again using my Leaders' Questions slot to emphasise the urgency of providing funding for the long-awaited Macroom bypass, which is of vital importance to all of Kerry and much of Cork in attracting investment and jobs to the counties and assisting all who travel to Cork and beyond daily to work and to receive medical care and attention in the primary care hospitals in Cork, especially cancer treatment. It is also anticipated that Fitzgerald Stadium will be one of the venues for the 2023 Rugby World Cup. This infrastructure will be of vital importance to strengthen Ireland's bid for the tournament and we must provide proper access to Fitzgerald Stadium in Killarney, which will have capacity for at least 50,000 people. It is arguably one of the most picturesque pitches in the country.

Many deputations from Kerry County Council have met representatives of Transport Infrastructure Ireland and the National Roads Authority about this project over many years and again recently but it is clear the project will not go ahead until the Government makes the funding available. When the review of the capital investment programme takes place in the next few months, I ask that the Macroom bypass be brought forward. The project is expected to cost approximately €230 million but more than a third of this will be recouped by the Government in repayments of VAT, taxes, licences and permits. It is anticipated the job will take at least three years to complete so if we work back from 2023, the latest the job can start if it is to be finished in time for the tournament is early 2019. A commitment to the project must be given by the Government to allow for the tendering process to proceed and the work to be carried out and finished in time.

Killarney and Fitzgerald Stadium would make a wonderful venue as the town is renowned as one of the best tourist attractions in the country, with wonderful hotels, restaurants, bed and breakfasts and the massive INEC event centre, and there are many hotels in nearby towns. I appeal to the Minister to have his Government play its part in providing proper access to Kerry and Killarney in particular.

We do not want these fine big broad men getting stuck going around the back turns in Chúl a' Bhucaigh or when parked in traffic jams in Macroom. All Deputies need to pull together to bring the World Cup to the country and to showcase our country to the rest of the world. I believe this mighty event will be the next great opportunity to showcase our country to the world. I am asking the Government to play its part in doing just that.

I thank Deputy for raising this matter. The Government recognises that the road is an essential link between Cork and Kerry. It has been approved in principle in the plan, as Deputy Healy-Rae is aware. It already has full statutory approval and advance works have been carried out. There has been a solid commitment of funding since 2014 to undertake and deliver advance works.

Clearly, within the context of capital planning this is a high priority. It is one of possibly three top priorities in the Cork-Kerry region recognised by Government. It is a major project though, covering 22 km and requiring €160 million of investment. It is approved in principle. Clearly, as the project develops it will have high priority. The Minister for Housing, Planning, Community and Local Government, Deputy Coveney, and the Minister for Agriculture, Food and the Marine, Deputy Creed, have emphasised this point and have met representatives of Transport Infrastructure Ireland in that context.

It is good that the Deputy continues to raise the matter because it continues to emphasise the priority. Ultimately, however, we have to work with the capital plan to enable us to fund a balanced range of projects. Clearly this project will be considered high priority as we make our expenditure commitments in the context of the capital review.

There appears to be a discrepancy. Transport Infrastructure Ireland has said it will cost €230 million. The Minister is saying it will cost €160 million. The lesser figures surely make it more attractive to get it going quicker.

IBEC said yesterday that we have the lowest capital investment programme in Europe, even though interest rates and money were never cheaper. We must work at something like this; it is vital.

This is a wonderful opportunity to get the project going and finished in time for the World Cup and indeed for all the people who have been looking for the bypass for over 35 years. It is 35 years since it was sought and approved by Kerry County Council. Surely, the people of Kerry are entitled to a proper road into our county. We are denied investment primarily because of this road, which is not of a proper standard.

Go raibh maith agat. You have made your case.

I am calling on the Government not to delay us any further and to bring it forward in the capital investment programme. That is what is needed to get the project going.

Minister, the ball is thrown in and the game is on. You have one minute.

All Members appreciate that there has effectively been a lost decade in terms of investment in infrastructure. We can see that in many of the problems we are having to deal with in housing, health and other areas. That is equally true in this area.

However, it is encouraging that as the economy has recovered the Minister for Public Expenditure and Reform has been able to increase the capital budgets. He did this already last year. We are now approaching a capital review in the context of which, because of the progress we are making, we will be able to see additional capital programmes. We are in a position to start to repair the damage. We need to understand that our capacity to do that will be limited because we are in recovery mode. It is a question of using the money to the best effect.

I can assure Deputy Healy-Rae that, on the basis of everyone I have spoken to, this is regarded as a priority project. It is recognised as a priority for Kerry and Cork. There is broad Government belief that this project is high priority. I reckon that will colour decisions in future. Clearly, however, I cannot give an indication today on decisions that will be taken in future.

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