I am pleased to have the opportunity to discuss my Department's 1998 Estimate with the Select Committee on Environment and Local Government, and I look forward to a constructive discussion and exchange of information. A short briefing note has been prepared for the members of the committee giving details of the overall Estimate and the individual subhead expenditures. The Ministers of State at the Department, Deputy Molloy and Deputy Dan Wallace, and I will be happy to assist the Committee in any way we can during the question and answer session. If more specific information is sought by members that is not readily available we will be glad to communicate with the members subsequently. I will deal with a number of areas as briefly as I can and I will begin with housing and house prices.
Members of the committee will be aware of the dangers and problems stemming from excessive increases in house prices. These arise not just in the housing sector but in the overall management of the economy through the risk of higher inflation and the corresponding threat to wage restraint which is a cornerstone of this and previous Governments' efforts which have led to the economic success we experience.
In advance of Government action on this issue Peter Bacon and Associates were appointed to examine the factors underlying the increase in house prices in recent years. The Bacon report was produced within a tight time frame and the Government responded on 23 April when it was published. The action programme on house prices is a balanced package of measures which consists of a three pronged approach.
First, we intend to increase the potential supply of housing by the provision of more serviced land through the removal of infrastructural constraints, the promotion of increased densities at appropriate locations and in an appropriate manner, the faster release of serviced land for residential development and better market access to the existing housing stock.
The second approach will address factors causing overheating or distortions in the market - including excessive investment demand - and restore better balance between supply and demand. Finally, we are determined to improve the position of prospective first time buyers. I am confident that the measures making up the overall package will do that.
Regarding local authority housing, I am pleased to provide for an increase of £34 million on the local authority housing programme for 1998. This represents an increase of 19 per cent on expenditure in 1997 and demonstrates the Government's commitment to this important social programme. The provision of approximately £214 million will enable local authorities to meet commitments carried forward from previous years and to fund a programme of 3,900 new starts or acquisitions this year. It is important not just to look at local authority starts but also the complementary social housing measures which mean that the housing needs of some 10,000 households will be met in 1998.
The 1998 provision for local authority housing includes £20 million to get the redevelopment of Ballymun under way. This is real evidence of the Government's commitment to improving the housing and economic prospects of an area of Dublin that has regrettably been neglected. The new company, Ballymun Regeneration Ltd., set up by Dublin Corporation, has completed the masterplan for the social and economic regeneration of the area. Detailed work on implementing its many elements will now begin.
On taking up office, it was clear to me that the failure, since 1995, to update the terms and conditions of the various social housing schemes had led to a serious decline in activity. Under the voluntary housing capital assistance scheme, for example, output fell from 613 units in 1995 to 501 in 1996 and 345 in 1997. Decisive action was necessary to restore the effectiveness of social housing programmes including voluntary housing and the shared ownership scheme.
Major improvements to the range of social housing options were announced last November by the Minister of State, Deputy Molloy. These included new maximum levels of assistance to voluntary housing bodies under the capital assistance scheme; these exceed the previous levels by amounts ranging from £5,000 to £15,000 per unit of accommodation. Wider income limits, lower rents, higher unit cost limits and a higher level of ongoing support for voluntary housing were introduced under the rental subsidy scheme. Increases of up to £15,000 per unit of accommodation in the levels of assistance available for voluntary housing schemes on offshore islands were provided for, in addition to a 50 per cent increase in funding for communal facilities in voluntary housing. In many instances, these increases were backdated to 1 July 1997. All of these measures will help to revitalise the social housing schemes as well as providing the opportunity for social housing in locations where it has not previously been attempted.
Regarding roads, the 1990s have seen an impressive level of investment in our road network, taking investment to unprecedented high levels compared with the previous two decades. The 1998 Estimate at over £492 million continues this trend with a 12 per cent increase over 1997 expenditure of around £438 million.
The revised Estimates for 1998 include a total provision of over £288 million for national roads. More than £263 million has been allocated to the National Roads Authority for the construction and improvement of this network. These funds will enable the authority to complete projects such as the River Lee Tunnel and the Arklow and Balbriggan by-passes, and enable progress to continue on major infrastructural projects like the Dunleer/Dundalk motorway and the Cavan and Donegal by-passes. To complement the improvement of the network, over £25 million has also been provided to the authority to carry out maintenance works. The 1998 Estimate represents an increase of 11 per cent over the 1997 expenditure figure of about £260 million.
When I announced the non-national road grant allocations to local authorities in Cork last February, l made it clear that it was no longer acceptable that we were still negotiating around potholes in this era of the Celtic tiger. There is an unequivocal commitment in the Action Programme for the Millennium to increase funding for regional and local roads around the country. The 1998 Estimate for non-national roads shows that this Government has not been found wanting. The figures speak for themselves.
The total non-national road grant allocations in 1998 will amount to nearly £204 million, an increase of £26 million or almost 15 per cent on the 1997 outturn and an increase of £31 million or 18 per cent on the original 1997 allocation figure. This allocation - a record, all time high - means that since 1993, non-national road grants have increased by 165 per cent from just over £77 million.
The grants provision of almost £204 million for 1998 includes over £118 million for the restoration programme or almost £25 million more than was provided in 1997 under this heading. This will enable further significant progress to be made this year and will finance, by the end of 1998, a total of more than 5,200 road schemes, with over 8,400 kilometres of road benefiting. The increased level of funding available this year will allow county councils to carry out almost 90 per cent of their 1999 restoration improvement schemes in 1998, in addition to the 1998 schemes included in their multi-annual programmes. That programme is almost one year ahead. This will significantly accelerate the programme and allow for more rapid progress on the ground.
A good quality environment is part of our national wealth. Maintaining and enhancing this asset is part of our drive to secure prosperity and a better quality of life for everyone. Many of our main economic activities - for example, agriculture and food, fisheries, tourism as well as high quality industry and services -rely on a clean and unpolluted environment. Environmental quality underpins both their operations and associated jobs. In every way, therefore, it makes sense to develop and implement good environmental management strategies.
Education, public debate and easier access to information have all helped raise awareness of environmental pressures, both globally and at local level. However, much still needs to be done to translate this concern into positive action at individual, sectoral and consumer level, to deal with the environmental challenges we face. Central to these additional efforts will be the development of a partnership approach involving all sectors and major groups. Such partnership is one expression of the principle of shared responsibility, where all of us - individual workers and consumers, employers and trade unions, government and economic sectors - play our part in working towards a common goal. This principle can also apply to the protection of our environment and help to create a sense of ownership, personal responsibility and a feeling that we all can contribute to maintaining a high quality environment.
A new provision in the Estimates for 1998 is that of £250,000 for the National Environment Partnership Forum. The establishment of this forum is, as Members know, a major environmental commitment in An Action Programme for the Millennium. Following an intensive period of consultation with interested groups, I am currently analysing the issues raised and intend shortly to finalise proposals for the establishment of the forum. While the detailed terms of reference of the forum and its work programme are still being considered, it is my intention that the forum will have a strong voice in addressing both the Government and the public on crucial aspects of the environment and sustainable development. It will be an effective means of promoting and supporting shared responsibility for environmental quality and will provide an appropriate mechanism for consultation and structured dialogue on issues surrounding the pursuit of sustainable development.
Water and waste water infrastructure is a major capital programme which confers significant short and long-term environmental benefits. At just under £185 million in 1998, investment in the programme is at a record level and is up 13 per cent on last year. Over £150 million will be spent on major public water and sewerage schemes. The programme provides for the commencement of up to 60 major public schemes this year at an estimated cost of £470 million, including the Dublin Bay project - one of the largest construction contracts ever undertaken in the history of the State - Osbertstown sewerage, Galway main drainage and major water supply schemes for Galway and Monaghan. A further 61 schemes will continue construction in 1998, including major water schemes at Buncrana, Leixlip, Sligo, Waterford and Wexford and major sewerage schemes at Cork, Tralee, Drogheda, Dundalk and Navan. About 80 schemes will be advanced through planning to commence construction in later years.
Our rapid and sustained economic growth brings with it demands for more infrastructure, including water and sewerage infrastructure. This year's provision will allow a major increase in the level of activity under the water and sewerage services investment programme and will also provide for significant investment under the rural water programme, the serviced land initiative and in water conservation schemes.
The limited time available does not permit me to touch on many of the other important functions and services for which my Department is responsible. However, I and the Ministers of State will be happy to deal with matters which Members may wish to raise during the course of the meeting. I am confident the 1998 Estimate will enable the services for which my Department and local authorities are responsible to be maintained and built upon, and allow us to take further practical measures to ensure our natural environment is preserved for the benefit of this and future generations.
