The Government have provided significant additional resources for housing in recent years. Investment in social and affordable housing is at its highest ever level. The total Exchequer capital and current funding available for social and affordable housing in 2005 amounts to €1.3 billion, which represents an increase of 20% on 2004. Total capital spending on social and affordable housing output in 2005, inclusive of non-Exchequer financing, will amount to some €2 billion.
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 positive impacts in addressing social inclusion. Output has been behind that forecast. Some of this is attributable to rising costs of sites and construction inflation and 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 lessons from past performance is the need for certainty around funding and the value of a multi-annual approach. In line with NDP targets, a multi-annual programme was introduced for the main local authority programme in 2003. A number of benefits were seen from this approach in terms of providing certainty for local authorities in planning projects and achieving an appropriate response to social needs. However, the fact that Exchequer capital spending was decided on a year to year basis at that time, meant that the full benefits of a multi-annual approach were not fully realised in terms of certainty of funding availability.
The commitment to multi-annual capital programmes in this Government's 2004 budget and the introduction of five-year action plans covering all social and affordable housing programmes by local authorities up to 2008, provides a strong basis for a strategic and measured approach to housing investment. The plans also address maintenance and estate management issues. The preparation of these plans sharpened the identification of priority needs and will help to ensure a more coherent and co-ordinated response across all housing services.
I consider that, with funding and plans in place, real benefits will be seen in terms of both the output and the quality of social housing provision over the coming years.