This is the first time I have presented the annual Estimates for the Department of the Environment to the Select Committee on Finance and General Affairs. I assure the Chairman and Members of my co-operation and that of my officials in assisting the committee in all facets of its work. In the months to come, I will come before the committee with legislation on waste, local government charges and on aspects of electoral law. There will be other legislation which may be taken in plenary session in the Dáil Chamber.
Today, the focus is on my Department's expenditure programmes and I look forward to a constructive debate. To facilitate this, a briefing note has been circulated giving details of the overall Vote structure, the different programmes, and the purposes for which the individual allocations are provided. I will be joined by Deputy McManus, Minister of State at the Department of the Environment with special responsibility for housing and urban renewal. We will be happy to assist the committee in any way on any questions which may arise subsequently.
This year my Department will spend almost £900 million and about 90 per cent of this will flow to local authorities in grants and subsidies. This constitutes a considerable proportion of overall local authority spending which amounts to approximately £1.85 billion on essential infrastructural, environmental, amenity and community services. A by-product of this spending is the provision of direct employment to almost 30,000 people, and the underpinning of many jobs in the private sector.
I am conscious that this opening statement cannot address all the spending areas for which I am responsible. I have opted, therefore, to touch on the major services, such as housing, roads and sanitary services. Since this is my first time to present the Environment Estimate I also wish to say something about wider environmental issues and the local government system itself. I hope to have an opportunity of commenting on other services and activities as Members may request and as the debate progresses.
This year has seen two major developments with regard to housing. In the first instance, there has been an increase of almost 30 per cent in the resources allocated to housing in the public capital programme, up to £279 million to almost £358 million this year. This will allow the annual target of 7,000 social housing starts, set in the policy agreement A Government of Renewal to be met in 1995, the Government’s first full year in office.
The allocation of over £154 million for the local authority housing construction programme this year will allow local authorities to make 3,500 "starts" and to acquire a further 400 houses during 1995. In addition, increased funding will allow for approximaely 1,200 starts in the voluntary housing sector. The £60 million available to shared ownership should permit 1,500 families to avail of this route to home ownership. Taken together, the output from the local authority and voluntary programmes, relettings from casual vacancies and the smaller complementary schemes, should enable local authorities to cater for over 9,500 household this year and 10,000 households next year. This will constitute an increase of 60 per cent in social housing provision since 1992; it should significantly improve general access to housing, and shorten the time on waiting lists for those in need of rehousing.
Turning to private housing, the climate for home ownership and for the house building sector continues to be very positive. Last year was significant, with an all time record level of over 23,500 private completions, a 22 per cent increase on the previous year's output. Figures for the first quarter of 1995 indicate a further strong increase of one third in total private house completions compared to the same period last year which represents a significant increase on last year's record. This, with buoyant figures for new house registrations and loan approvals and the growth in output under the local authority and social housing schemes that I have already outlined, suggest that we should well be heading for the best year for overall housing completions this year in the history of the State. This remarkably strong housing market is underpinned by the general upturn in the economy, the plentiful supply in mortgage finance and relatively low interest rates.
The second major development on the housing front this year is the publication of Social Housing—The Way Ahead, our policy document for the social housing and private rented sectors. This review overlooks the developments since the Plan for Social Housingin 1991 and, as the title suggests, it charts the way ahead over the coming period. I do not propose to go through the detailed measures and the many improvements and new schemes contained in the document as Members will have had the opportunity to study them in detail, but I want briefly to refer to a few general points of special importance.
Policies aimed at counteracting social segregation have begun to make an impact, and we are determined that they will continue to apply these provisions to the local authority and voluntary housing programmes. Smaller housing schemes which help to develop better integrated communities, and the option of purchasing existing houses must continue to be promoted. Even with the expansion of the building programme to 3,500 "starts" this year, there can be no justification for reverting to the sprawling estates of the past, far from the existing community and facilities.
Housing conditions for travelling families are still unsatisfactory in many instances and we all must continue to focus on those. At national level we provide the resources to finance suitable accommodation, whether by way of integrated housing or group housing or halting sites, depending on the preferences in local circumstances. Local authorities, as housing authorities, are responsible for delivering the accommodation required. While I readily recognise the difficulties, I must once again call on all local authorities, elected members and officials, to take a hard look at progress, or sometimes the lack of it, and consider how we can all do better. I know that settled communities often have anxieties about the provisions of accommodation of travellers in their areas, but many of these anxieties can be overcome by local discussion and consultation and the provision of small, well designed sites in suitable locations. The fact that voluntary bodies may now avail of the capital assistance and rental subsidy schemes to provide halting sites and new housing for travellers opens up possibilities of providing a useful supplement in some areas, at least, to the existing efforts of local authorities.
The policy document Social Housing—The Way Ahead lists ten priority areas for action in dealing with homelessness and I wish to refer briefly to two. In the first instance, we relied too heavily in the past on bed and breakfast accommodation which is unsatisfactory for many of the households for which we cater. The bed and breakfast option may be necessary to meet emergencies but we want to see it used only as a last resort, and even then only on a short term basis. More emergency accommodation to suit different types of household is, therefore, needed. We have invited voluntary bodies in partnership with local authorities to bring forward proposals to meet this need, especially in the major population centres where the problem is most acute.
The second point is in respect of the shortage of suitable accommodation in which homeless people can make the transition from homelessness to a more normal pattern of life. Here again, voluntary bodies and local authorities have been asked to bring forward suitable proposals for the kind of transitional facilities which will assist in breaking the vicious cycle of homelessness.
Turning to the issue of roads, the creation of transport infrastructure networks capable of meeting our national development needs is a major priority of national and EU investment policies. The importance of developing our internal and access transport and infrastructure, especially the road network, has been recognised and supported by almost every major analysis and review of the Irish economy of recent times. The Government's commitment to developing our road network is reflected in the total 1995 Estimate provision of over £317 million for road maintenance and improvement work.
Over the period of the EU Operational Programme for Transport, 1994-1999, £2.6 billion will be invested in an integrated transport infrastructure programme covering roads, rail, ports and airports. Within this programme the development of a modern road network will continue to receive high priority, with total investments of over £1.2 billion earmarked for the network over the period of the programme.
The provision of a safe and efficient network of national roads is one of the vital elements necessary to assist our industry and our services to compete for business and to preserve and expand employment in the process. The ESRI has said that investment in major road improvements should continue as the top priority, accounting for the bulk of all funds under any future transport infrastructure programme and the policy we are pursuing reflects this.
Within the 1995 provision for national roads, £146 million has been allocated by the National Roads Authority for major road improvement schemes such as the recently opened Longford bypass, the Northern Cross Route in Dublin, the River Lee tunnel and the Sligo-Collooney bypass. The balance of capital expenditure on national roads will be applied to smaller projects, such as minor alignments, strengthening works and pavement improvements. In addition, £23 million is being provided through the Estimate for maintenance work on national roads. Overall, the 1995 provision for national roads is up £20 million on last year's total and will allow the NRA to progress towards completing the development of the national primary network, on target, by the year 2005.
In recognition of the poor condition on non-national roads in many areas and the further damage sustained because of bad weather last year, an increased overall allocation of almost £103 million was provided for these roads in the budget. This provision is marginally less than in 1994. However, as Deputies will be aware, the funds provided in that year were significantly boosted by a large allocation from the receipts of the tax amnesty which, as emphasised at the time, could not be repeated. Leaving aside this exceptional allocation, the 1995 grants are significantly up on the underlying 1994 provision and on the allocation of any previous year. Based on the adopted Estimates, local authorities will provide almost £59 million from their own resources in 1995 for work on non-national roads. This should bring the combined provision to almost £162 million, sufficient to finance a very substantial programme of works this year.
To allow for the development of a longer-term strategy, the Government has asked for a report on the overall state of county roads, including their maintenance and other needs. When the report has been fully considered, the aim will be put in place a coherent and integrated plan to bring the network up to an acceptable standard over a period of years. I have already made it clear, however, that there are no simple or easy answers to this problem. We are dealing with a network of almost 88,000 kilometres of regional and county roads, or nearly 55,000 miles, most of which was never designed or constructed to take the volume or weight of traffic it is carrying.
There is a growing appreciation that filling pot holes by traditional means and other short term remedial measures can amount to a waste of resources. On the other hand, the cost of a full-scale restoration programme is likely to be very great and will present all of us at central and local levels with some difficult policy choices, which I intend to bring to the Government and to the Oireachtas in due course.
Before addressing the question of overall environment policy, I want to refer to the water and sanitary services programme which, of all our environmental efforts, continues to utilise the greatest share of Exchequer resources. The programme is a major component in our efforts to protect and enhance the environment and, in recognition of this, investment this year on these programmes will be £107 million.
Construction work on 25 substantial projects was completed last year and the results are now evident throughout rural and urban Ireland. Major sewerage works have been commissioned in Ennis, Monaghan town, Kanturk, Newbliss, Longford and Athlone and the advantages of enhanced water supplies are now evident in Nenagh, Bailie-borough, Killybegs and Bangor Erris.
I readily acknowledge the importance of the substantial funding provided by the European Union for this programme. In 1995 alone, assistance from various funding instruments will be of the order of £66 million. The Cohesion Fund is, and will continue to be, the main source of EU support. Already, funding for 26 projects has been agreed, projects which, over the next few years, will replace or upgrade existing facilities and ensure compliance with European standards. Most of our major cities and towns will benefit from this investment, including Dublin, Galway, Cork, Limerick, Waterford, Wexford, Tuam, Clonmel, Dundalk and Drogheda. Additional applications are being examined at European level and we are told that further approvals are imminent.
The 1995 capital provision will enable construction work to continue on priority schemes, including new and improved sewerage schemes to serve Dún Laoghaire, Mitchelstown, Bray, New Ross, Robertstown, Greystones and Enniscorthy. Progress will also be maintained on water supply schemes at Leixlip serving north County Dublin, Lough Mask serving the Ballinrobe and Claremorris areas, south Leitrim, Limerick, Ballyjamesduff, Tuam and Templemore.
Investment of over £9 million in small public and group schemes is included in this year's provision. These programmes bring widespread benefits and represent superb value for money. Group schemes are unique to this country and supply good quality water in rural areas while small public schemes redress deficiencies in water supply and sewage treatment and can protect important environmental assets such as groundwater supplies.
The effects of the water and sewerage programmes are far reaching. It services sustainable industrial development and increases employment opportunities and potential in different ways. Quality and quantity of water supply are prerequisities for many industries, including agri-food, pharmaceuticals, fisheries and tourism. On the other hand, sewage treatment infrastructure is necessary to ensure that job creation will not take place at the expense of our relatively pollution free environment. Our clean rivers, seas and lakes are in themselves major tourist attractions and have the potential to underpin substantial employment growth in this sector. In essence, the sanitary services programme builds capacity into the economy in a manner consistent with protecting and enhancing our natural environment.
Water services infrastructure is not the only means by which we seek to protect the environment. This Government has strong policies for the management of economic growth and development but we also recognise that for development to be sustainable, environmental protection must constitute an integral part of the development process. The national sustainable development strategy which is in the course of preparation will incorporate the Government's commitment to integrate environmental considerations into all policy areas. Its objectives will be to ensure that consideration for the environment is integral to the planning and management of industrial and energy requirements, transport, agriculture, tourism and our whole pattern of production.
Sustainable development was defined in the report of the World Commission on Environment and Development as "development which meets the needs of the present without compromising that ability of future generations to meet their own needs". As such, it involves striking a balance between current development needs and the natural environment, the natural capital on which our present and future well-being depends. Sustainable development is both dynamic and durable. It is about innovative expansion rather than a shut down of economic activity. We will seek to achieve more growth with less natural resource exploitation, energy use and waste production.
The value and potential of this new development model has been recognised in the establishment earlier this year of the Joint Oireachtas Committee on Sustainable Development. The committee, in prospect of the national strategy, is now working to identify the measures to maximise the advantage of environmentally sustainable sectoral policies and to increase Ireland's share of the growing world market for environmental goods and services.
Work towards the national sustainable development strategy is centred in my Department, but sustainable development must become the business of everyone. I recently published guidelines entitled "Local Authorities and Sustainable Development” to stimulate informed debate and prompt ideas for carrying forward local agenda 21 initiatives at local government level. Like the work of the Joint Oireachtas Committee, this will intensify awareness of environment and development issues at all levels of Government and society, complementing and consolidating our work on the national strategy.
I adverted at the beginning to the sheer scale of spending by local authorities — over £1.8 billion in the current year. This in itself highlights the need for an efficient system of local government which provides the best possible return to the taxpayer, a high quality of service to the public, an active role in environmental protection and improvement and maximum accountability and democratic representation.
The policy agreement A Government of Renewal signposts the future direction of local government by providing that local empowerment of people is the overall objective of reform. We want to ensure that arrangements are put in place to return the greatest number of opportunities to an effective and accountable local administration with a fair, equitable and reasonable system of funding. We want a phased programme of devolution and a widening of the role of local government with more respect for the principle of subsidiarity. We want the local authority to become the focus for working through local partnerships involving local community-based groupings, voluntary bodies, the private sector and public agencies, with a particular focus on co-ordinating the efforts of existing groups. Finally, we want the role of regional authorities to be expanded in various ways.
The commitments in the Government programme have potentially far-reaching implications, both in terms of their implementation and outcomes. The outcome cannot simply be a redesign of boundaries, structures, functions or systems. These may well arise, not as ends in themelves but rather as means towards the deeper objectives of fundamental renewal of local democracy and redefinition of the relationship between central and local government.
It is useful, therefore, to reflect on the longer-term benefits which we seek to obtain from local government reform. For instance, local empowerment can promote greater local initiative and mitigate the culture of dependency which looks to central Government for scapegoats and solutions to every problem. A more balanced and mature relationship between central and local government with greater local autonomy would allow central Government to concentrate on its proper role of developing the overall framework of policy and law and maintaining strategic oversight of the system. In a vibrant system of local government, the elected councils would be in a better position to provide community leadership and play a more active and visible role in directing their councils' affairs in the formulation of policy and strategy and in general oversight of performance. A more locally focused approach should lead to the development of a more service-based and consumer conscious approach in which matters are arranged around the needs and priorities of the public with a customer oriented rather than organisatonal focus.
The immediate priority in the current phase of the reform programme, the reorganisation of town local government, on which action is already under way. The local government reorganisation commission will report by January next on a number of key issues, such as the classification, functions, financing, staffing, other general organisation arrangements, and the relationships between town and county authorities. In addition, an initiative on devolution has already been signalled by the Taoiseach and I expect a more detailed announcement on this quite soon.
On the important question of local finance I have taken steps to set in train the professional study promised in the Programme for Government. I will be announcing the details in a few weeks.
In the time available I am not permitted to do more than touch on many of the functions and services for which my Department is responsible but, with the assistance of the Minister of State, I am happy to deal with any issues Members may wish to raise. I am confident the 1995 Estimate will enable my Department and the local authorities to continue to provide a range of services necessary for social and economic progress and to protect and enhance our environment for this and future generations.