Dáil Éireann Debate, Tuesday - 28 June 2005
25 Mr. Gilmore asked the Minister for the Environment, Heritage and Local Government the total number of affordable houses that have been constructed, provided and allocated to date under Sustaining Progress and Part V of the Planning and Development Act 2000; and if he will make a statement on the matter. [22462/05]
View answerPart V of the Planning and Development Acts 2000 to 2004 is fully operational and all relevant residential planning applications are now subject to a Part V agreement. Apart from the provision of housing units to the local authority on or off-site, an agreement under Part V may provide for a range of other options. Notwithstanding the availability of these options, my Department's stated preference, which has been communicated to local authorities, is for the provision of housing units whether on-site or off-site.
Under Part V agreements with developers, a total of 508 affordable housing units were acquired by local authorities up to the end of December 2004, 1,215 affordable units were in the course of acquisition and a further 2,260 were earmarked for acquisition on foot of Part V agreements with developers. In addition to the affordable housing units, nearly 300 social units have been acquired together with 12 land transfers to local authorities involving over 11 hectares, a further 156 sites have also been transferred and some €11 million has been received in payments in lieu and under the withering levy. These figures demonstrate the effectiveness and further potential of Part V. I am confident that the Part V arrangement will contribute significantly to the provision of social and affordable housing in the future.
Under the affordable housing initiative substantial progress continues to be made. Over 70 sites have been identified on State or local authority lands, which, including Part V, have a potential yield exceeding 10,000 affordable housing units, meeting the target proposed by the parties to the pay agreement. To date, the initiative has delivered nearly 500 units, including from Part V. Delivery will continue throughout 2005, with an estimated 1,350 units forecast for completion and projects with a potential of 2,200 units either under construction or commencing construction during 2005. Projects with an estimated potential of 3,400 units will commence construction during 2006.
To promote the earliest possible delivery of units, a fast-tracking mechanism for delivery of units has been agreed and is being implemented. This followed a pilot land exchange arrangement for a 0.4 acre city centre site at Harcourt Terrace Lane which is to be exchanged for 193 additional affordable units to be made available on a phased basis over the next nine months. Some 140 of the units will be delivered in 2005 with the balance of 53 available early next year. In light of the positive outcome of the pilot land swap, a number of other sites will be developed using the same model.
I assure the House that there is a strong commitment in Government to deliver on this initiative and I believe that the substantial progress made to date and our arrangements for accelerating delivery emphasise this commitment.
The Minister of State indicated that 500 dwellings have been provided under Sustaining Progress, including some from Part V. How many houses under Sustaining Progress, excluding those provided under Part V, have been provided to date?
Do I understand the Minister of State correctly that from the Part V initiative that was originally announced in 1999, only 508 affordable dwellings have been provided to date, at a time when housing construction is running at almost 80,000 units per annum and when we were to expect 20% of development to be provided by way of social and affordable housing initiatives?
Will the Minister of State explain the inconsistency between the figure he has given me today and the figure which he provided for me on 18 May? Today he informed me that 1,215 dwellings were in the course of acquisition but on 18 May he informed me that 1, 910 dwellings were in the course of acquisition. He also informed me today that 2,260 dwellings were earmarked for acquisition but on 18 May he informed me that 2,885 were earmarked for acquisition. What has happened in the past six weeks that has caused 700 dwellings that were in the course of acquisition to disappear and 600 which were earmarked for acquisition to also disappear?
Will the Minister of State indicate to the House the valuation put on the Harcourt Terrace site?
Deputy Gilmore's question is about affordable units but the total dividend from Part V would include social as well as affordable units. The figure of 508 units relates to affordable housing. However, the total dividend from Part V is about 800 units.
Is that 800 in all?
It is approximately 850. Where I referred to 1,200 affordable units today, that would amount to 1,900 Part V units in total.
How many housing units relate specifically to Sustaining Progress, excluding Part V?
It is small, it is only about 30 units.
Thirty.
This is where Deputy Gilmore deliberately tries to blackguard and act the fool. He is the only person he is codding.
The Minister of State is codding the public.
No, I am not. It takes time.
Ten thousand units.
The public is more sensible. People realise that it takes time to build houses. One cannot just produce houses overnight. The affordable housing initiative was first mentioned two years ago. Some 350 units will be produced this year under Sustaining Progress that are not related to Part V. That will increase substantially. Any developer would say the same thing.
It is a long way from 10,000.
I am sorry if I sound boring repeating myself but it takes a minimum of three or four years from the time one gets a site to the time houses are provided. Next year will see a higher output of housing units. By the end of the year we expect to be on 13 sites.
Are they all in Finglas?
They are not but——
They are certainly not in Dún Laoghaire-Rathdown anyway.
What is the valuation of the Harcourt Terrace site?
The local authority in Finglas has been active in this area, mainly under the 1999 scheme, and there is some affordable housing initiative. The valuation of the Harcourt Terrace site is €39 million.
The Minister of State is not getting good value if that is the case.
We are receiving a net consideration for this site of €15.6 million, which is €2.6 million more than its pre-sale valuation of €13 million. This equates with €39 million per acre and is at the top of the range of sale prices achieved in city centre locations. It is a very good deal. We could have provided approximately 30 apartments on the site and some commercial units but instead are getting 193 units——
The Minister of State would have done as well as he did for the past three years.
——and much quicker. That is the real beauty of it. We could have got 30 apartments but it might have taken another three or four years. We are to have 140 of the 193 units this year. It is not just a case of getting more but of getting them much quicker. This is a really good deal.
Thirty out of 10,000.
No, it is not 30 out of 10,000.
It is. That is what has been produced.
The social partners know the deal into which they entered. Deputy Gilmore keeps getting mixed up deliberately.
It was always separate.
The deal includes 10,000 affordable houses, including Part V.
It was always separate.
The social partners know this.
It excluded Part V.
It most definitely did not. I am sorry the Deputy keeps confusing himself.
It excluded Part V.
It did not.
That was the deal.
It did not.
It is absolutely certain that there will be more houses completed than Dún Laoghaire Rathdown County Council has delivered in the past ten years. It is an appalling council dominated by the Deputy's party.
Nice try.
Question No. 26 answered with QuestionNo. 24.
