Dáil Éireann Debate, Thursday - 9 December 2004
5 Mr. Morgan asked the Minister for the Environment, Heritage and Local Government if his Department has initiated an investigation into the reason local authorities failed to proceed with all council house starts which were approved by his Department since 1993; and if he will make a statement on the matter. [32826/04]
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The Government has provided significant additional resources for housing in recent years. Record levels of funding are being allocated to local authorities for their social and affordable housing programmes for next year, with about €1.3 billion available from Exchequer resources for capital and current spending.
Ensuring that we achieve maximum output for these resources and best value for money is a prime concern. Independent evaluation of the housing programmes at the mid-stage of the national development plan highlighted the fact that spending was 9% ahead of target and this was having a positive impact on addressing social inclusion. However, output has been behind that which has been forecast. Part of the reason for that is attributable to the rising costs of sites and construction inflation. Mobilisation of construction programmes by local authorities has proceeded at different speeds.
The important task is to ensure that best practice is highlighted and replicated. We need to focus the local government system on achieving the best performance possible on housing issues. This relates not only to providing the required quantum of housing, but achieving this on a timely basis with appropriate quality.
One of the key issues arising from past performance is the need for certainty around funding and the value of a multi-annual approach. The €6 billion available for housing in the coming five-year period provides the certainty required. In association with this funding, my Department has initiated the development by local authorities of new five-year action plans for social and affordable housing to ensure a systematic and integrated approach to the effective use of these resources. I consider that with both funding and plans in place, real benefits will be seen in terms of the output and quality of social housing provision over the coming years.
Does the Minister of State agree that at a time of a major social housing crisis throughout the State, the lack of delivery in terms of housing provision is causing misery for approximately 48,000 families? The houses promised are not being delivered. Does the Minister of State agree that apparently nobody is doing anything about this? Does he also agree that one local authority in the Dublin area delivered 52% of housing starts approved by the Department in the past ten years? I do not need to tell him about the housing crisis in this city.
Who is to blame for this lack of delivery? Where is the blockage preventing these houses being built? If it is the case that local authorities are simply not building the houses, why is that the case? What are the obstacles to their doing so? It is not good enough for the Minister of State or the Minister, as he said last week, to point the finger at local authorities for not delivering these houses. What is the Minister of State specifically doing to ensure that houses approved by the Department will be delivered by local authorities? What is blocking 50% of house approvals proceeding in some cases?
Housing is one of the key responsibilities of local government. Funding is provided by the Department. It is of concern that approvals given have not in all cases been acted upon. Historically — the figures to which the Deputy refers cover a ten-year period — the local authority programme was managed on a yearly basis by allocating both starts and funding. Under the programme local authorities got funding on an annual basis in January or February. However, in recent years we have realised that the two most important ways of helping local authorities to do their job properly is by ensuring funding and adopting a multi-annual approach. They now know well in advance what their allocation will be. We completed one four-year multi-annual programme at the end of 2003 and we have started another. In the past, funding from year to year was not secure. Under the new system ongoing capital envelopes are secure. That means that over the next five years €6,000 million is in place. That will help local authorities.
Price inflation and problems with builders and planning can occur anywhere. Under the four-year programme local authorities have advance notice regarding funding. That is why it is more helpful. Local authorities were allocated funding to carry out their plans. However, performance has been patchy. The best county achieved 130% of the plan while the worst achieved only 50%. Even in recent times I remember Members of this House who were also members of local authorities giving the Minister grief in the House because their authority had only achieved 50% of its plan. I often suggested that they should complain to the local authority. The Department can help by giving certainty of funding and compiling a long-term action plan covering four or five years into the future. It is up to the local authorities to deliver, and the Department is doing all it can to help them to do that.
I am pleased to hear the Minister say this is of concern. It is a matter of grave concern to a very considerable number of people outside this House. Unfortunately, the Minister did not say where the blockage is occurring. I accept that the multi-annual budget is of help. However, the Minister's senior colleague is blaming councillors for the hold-up. Does the Minister of State agree with the Minister on that?
Multi-annual budgeting has been in operation for the past four years. Does that mean the problems of the past ten years happened during the first six years of that period and were rectified in the past four years? Where are the problems occurring?
The information given out recently was intended to help councillors so that they would know the ranking of their council and be able to compare their position with that of other councils. Under the four-year multi-annual programme, Cavan was at the top of the list at 145% while other councils were at 50%. Problems involving inflation, contractors, prices and so on can arise at any time. Some local authorities have more ambitious plans and some authorities are more realistic. Some of the problems occur at local authority level. We are helping them to manage their affairs better. How one plans, sets down strategies and manages is of key importance. The Department is playing its part by providing long-term programmes and certainty of funding.
