Dáil Éireann Debate, Tuesday - 23 October 2012
53. Deputy Seán Crowe asked the Minister for the Environment, Community and Local Government if he will provide an update on the progress with delivering homes for leasing which were promised by the National Assets Management Agency at the beginning of 2011 and again this month. [46195/12]
View answerTo date NAMA has identified more than 3,800 units to be considered for social housing. Of those that have been examined to date, 449 have been deemed unsuitable for social housing by housing authorities. A further 594 have been withdrawn, usually by property owners as circumstances change, for example, when units have been sold or let privately and are no longer available. Another 2,010 units are for examination by housing authorities as to their suitability for social housing purposes.
At present demand has been confirmed for over 735 housing units and these are currently being processed. In addition, 250 units are undergoing preliminary appraisal, with another 400 units currently under negotiation with relevant parties such as approved housing bodies, housing authorities, NAMA, receivers, property owners, etc.. Some 239 of these units have been identified for acquisition by the special purpose vehicle established by NAMA to facilitate the leasing of units.
To the end of September 2012, 133 housing units have been provided by NAMA, with 109 of these units specifically identified for social housing purposes. Of these units, 49 are funded under leasing arrangements with the balance funded through the local authority social housing capital investment programme or by approved housing bodies under the capital assistance scheme.
Before last Christmas we were told that NAMA had identified 2,000 houses in this area but in the end approximately 68 were delivered, which was very poor. For various reasons houses and properties were ignored. Now 3,800 units have been identified. However, the Minister of State has given a breakdown of some that are unsuitable or have been withdrawn and consequently there now are approximately 2,010 such units. I do not know at this stage how many will be delivered but there is a housing crisis. Some 98,000 people are on the waiting list for housing who, taking into account men, women and children, represent several hundred thousand people. That is the reality; the number is building and becoming ever bigger.
We are planning to lease these units from NAMA over a period of time instead of putting them forward for social housing. That is the big issue here. These houses must go towards the social housing list, not for leasing by local authorities. The property developers and those who ended up under the remit of NAMA are getting a double whammy here. They are being paid for these units which ultimately will return to those who previously owned them before the leasing period, whether that be for 25 years or more.
Progress is being made. The establishment of the special purpose vehicle has speeded up the process.
The Minister and I met representatives from NAMA on a number of occasions and this resulted in the establishment of the special purpose vehicle, which, as already stated, is speeding up the process. The houses in question will go to people who are on social housing lists. However, they must be located in places which local authorities deem to be suitable for the people on their lists. This is why the process to which I refer is being undertaken.
As a result of what has happened to the economy, there is only a certain amount of public money that can be spent through capital projects in the context of acquiring properties. We must use the means and moneys at our disposal in order to provide housing for those who, as the Deputy correctly states, are on social housing lists and need to be housed. This is one of the many mechanisms we are using to find houses for those in various areas throughout the country who require them. Matters have not moved as fast as I would have desired but we have recently been able to speed up the process as a result of the establishment of the special purpose vehicle. I am of the view that the latter will assist us in quickening the pace even further.
I thank the Minister of State. One of the major problems we are facing relates to the fact that just over 100,000 people are in receipt of either rent subsidy or rent allowance. This has become part of the housing list, and people who are on the rental allowance scheme, RAS, are being taken off that list. Some people have been in receipt of rent subsidy for between seven and ten years. This is a matter we must address. It is madness to be spending €580 million per year on rent subsidy when we have all of these properties, which are now going to be leased. I do not think this is the correct route to take because it will not give value for money. We are rewarding those who have let us and the taxpayer down. These individuals are involved with NAMA and they owe the State a huge amount of money. However, they will end up being paid and, in many instances, the properties in question will be returned to them when the leases run out. That is a scandalous way of operating.
We do not want to give money to those who do not deserve it. However, we must provide housing for people by whatever means possible. There are various methods available to us in this regard. The programme for Government contains a proposal in respect of transferring responsibility for rent subsidy from the Department of Social Protection to local authorities. This is the right way to proceed because it will mean that those who are on housing lists will be treated in the same way. In addition, people will be allowed to make choices that are appropriate to their needs at a particular time. This is a positive move. What I have outlined will commence next year.
I have raised this issue on a number of occasions but I still cannot obtain a straight answer. The Minister of State is not answering the question that has been put to her. Why has NAMA only managed to identify 2,000 suitable units out of a possible 340,000 empty units? Those 2,000 units are not going to help reduce the numbers on the housing lists. Why is the Minister of State expanding a policy under which we will be leasing properties on a long-term basis from developers and NAMA rather than pursuing a social housing policy which would lead to the State accruing rental revenues and saving €580 million per year? What is being done makes no sense, particularly at a time when the Government has stated that it is seeking to make savings. It is crazy.
I know I am supposed to answer questions rather than pose them. However, I wish Deputy Boyd Barrett would tell me from where we are going to get all the money to which he refers in order that we might build or buy the houses that are required.
From where are we getting the money to pay out €580 million each year?
The cost of building or buying a house this year, next year - when we will still be operating under the programme with the troika - or the year after will be a great deal more than the cost of leasing-----
We could build a great many houses if we used the €580 million.
There simply is not any money available. I sometimes think Deputy Boyd Barrett really is not aware of the nature of the financial situation in which the country finds itself.
I am painfully aware of it.
I would love to give local authorities a great deal of capital resources in order that they might build houses. However, we just do not have the money. No one other than the troika can lend us money at present. I wish the Deputy would provide answers rather than presenting us with lovely fairytale economics which I wish we could implement but which, unfortunately, we cannot. We must work within the existing system in order to provide housing for people in whatever way possible. Given that NAMA must return a commercial reward for the taxpayer, we cannot simply ask it to supply houses to us at no cost. It just does not work like that.
We are NAMA.
