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Thursday, 1 May 2014

Written Answers Nos. 118-129

Unfinished Housing Developments

Questions (118)

Seán Kenny

Question:

118. Deputy Seán Kenny asked the Minister for the Environment, Community and Local Government if he will provide a list of ghost-unfinished estates in the Dublin region in 2012. [19807/14]

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Written answers

The information requested was compiled as part of the 2012 National Housing Survey and can be downloaded from the Housing Agency’s website by clicking 2012 Individual County Figures at the following link:

http://www.housing.ie/our-services/unfinished-housing-developments/2012-national-housing-survey.aspx.

Water Charges Exemptions

Questions (119, 127)

Éamon Ó Cuív

Question:

119. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government if households who get their water from private sources on their land such as lakes, rivers, streams or wells will have their supply metered; if they will have to pay the standing charge for water supply; if there will be any difference depending on the depth of the source of the water in the ground; and if he will make a statement on the matter. [19808/14]

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Heather Humphreys

Question:

127. Deputy Heather Humphreys asked the Minister for the Environment, Community and Local Government if houses with private wells or currently on group water schemes will have to pay water charges; and if he will make a statement on the matter. [19881/14]

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Written answers

I propose to take Questions Nos. 119 and 127 together.

With effect from 1 January 2014, Irish Water is responsible for public water services. The Water Services (No. 2) Act 2013 provides that Irish Water can collect charges from its customers in receipt of water services. Irish Water will not collect charges from any households not connected to a public water supply, including households with private wells and private group water schemes.

My Department will remain responsible for the overall policy and funding of the non-public water sector, including the group water sector. Over the past decade, substantial improvements have been made in the group water sector, reflected in improved infrastructure and management and leading to greater compliance with drinking water standards. This has been accomplished through a partnership approach between my Department, the local authorities and the group water sector itself, with the important involvement of the National Federation of Group Water Schemes. This co-operative approach will be maintained as the reform of water services provision is progressed.

Group Water Schemes that are supplied by way of a connection to the public water supply network will now become customers of Irish Water, having previously been customers of the relevant local authority. Group Water Schemes that have their own water sources will not be customers of Irish Water and will continue to operate as before.

Water Abstraction Regulation

Questions (120)

Éamon Ó Cuív

Question:

120. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government where it is intended to introduce regulation in relation to the abstraction of water by households from their own land either for their own domestic use, for agriculture or for business purposes; and if he will make a statement on the matter. [19809/14]

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Written answers

The Local Government (Water Pollution) Regulations 1978 require local authorities to maintain a register of water abstractions greater than 25 cubic metres per day but there is no comprehensive national register of water abstractions. Compliance with the 1978 regulations has been variable and as a result, information on the exact number of abstraction points and their location as well as the volume of abstractions is not complete.

Article 11(3)(e) of the Water Framework Directive obliges Member States to implement controls over abstractions, including a register of abstractions and a system of prior authorisation. Member States can exempt from these controls, abstractions or impoundments which have no significant impact on water status. While this requirement has not yet been transposed into Irish law I am committed to addressing this.

Any proposed controls will be subject to a comprehensive public consultation process and will require Government approval. I would anticipate that a risk-based approach will be taken to any control model.

Unfinished Housing Developments

Questions (121, 133)

Bernard Durkan

Question:

121. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the number of housing estates in County Kildare the development of which is deemed to be incomplete and which may qualify for the special budgetary provisions made for unfinished estates; the number and location of such estates already deemed eligible; the degree to which approval has issued or will issue; and if he will make a statement on the matter. [19841/14]

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Bernard Durkan

Question:

133. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which he has had discussions with the various local authorities with a view to utilisation of the maximum funding available from the special budgetary provision in respect of unfinished housing estates; the number of estates qualifying under the criteria on a county basis; and if he will make a statement on the matter. [19891/14]

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Written answers

I propose to take Questions Nos. 121 and 133 together.

Budget 2014 contains a special provision, in the form of a targeted €10m Special Resolution Fund (SRF), to assist further in addressing the legacy of unfinished housing developments. The SRF is designed to encourage the resolution of the remaining tranche of unfinished developments identified in the National Housing Development Survey 2013 and, particularly, those developments not likely to be resolved in the normal way through solely developer/owner/funder action because of the presence of specific financial barriers. It is envisaged that the SRF should be particularly targeted to address the remaining unfinished developments with residents living in them and, in particular, any developments that local authorities identified, for the purposes of the Local Property Tax waiver, as in a seriously problematic condition.

In December 2013, my Department wrote to local authorities seeking proposals for funding support under the SRF and the deadline for receipt of applications was 28 February 2014. I understand that Kildare County Council has submitted applications in respect of 4 housing developments for funding.

All submissions are currently being evaluated by my Department in accordance with the criteria that have been circulated to the local authorities. I am conscious of the limited time available to complete SRF projects within the current year and, while I am not currently in a position to confirm whether the applications in respect of the developments in question will be successful, I expect that my Department will be in a position to finalise its consideration of the matter in the very near future.

A comprehensive range of information on Unfinished Housing Developments is available on the Housing Agency’s website at: http://www.housing.ie/Our-Services/Unfinished-Housing-Developments.aspx.

As part of the process of analysing and addressing the causes and consequences of unfinished housing developments, the Department has published annual National Housing Development Surveys since 2010. Developments to be included in the surveys were those in an unfinished state whose construction had ceased since 1 January 2007, specifically owing to the onset of the economic downturn and related developments in the housing market. All these surveys are displayed at the Housing Agency web link above.

An exemption from the Local Property Tax (LPT) applies to developments listed in the Schedule to the Finance (Local Property Tax) Regulations 2013. The list of unfinished housing developments eligible for the exemption was compiled by local authorities based on data from the National Housing Survey 2012, which was carried out over the course of summer 2012 by my Department in conjunction with local authorities and the Housing Agency.

The administration of issues relating to unfinished housing developments is a matter for individual local authorities. Each local authority has appointed an Unfinished Housing Development co-ordinator; contact details are also displayed at the Housing Agency web link above.

It is hoped that the SRF will enable very substantial progress to be made in resolving as many of the remaining unfinished developments as possible.

Planning Issues

Questions (122)

Bernard Durkan

Question:

122. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which his Department has had discussions with the authorities in Kildare County Council with a view to finalisation of any outstanding planning or other matters affecting the development at the Waterways, Sallins, County Kildare; if the responsibilities of all interested parties have been identified and listed for resolution; the extent of any outstanding matters prior to the taking in charge of the development by the local authority; and if he will make a statement on the matter. [19842/14]

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Written answers

The finalisation of any outstanding planning related matters affecting the development concerned are a matter for Kildare County Council and I have no function in such matters.

Following the insertion of subsection (2A) into section 180 of the Planning and Development Act 2000, by the Planning and Development (Amendment) Act 2010, planning authorities are not prevented from taking in charge any housing estate even if it has not been completed to the satisfaction of the planning authority in accordance with the planning permission. The decision as to whether an estate should be taken in charge is ultimately a matter for the elected members of the local authority having regard to a report prepared by the Planning Section of the local authority and the associated funding obligations of taking the estate in charge.

Private Rented Accommodation Deposits

Questions (123)

Jerry Buttimer

Question:

123. Deputy Jerry Buttimer asked the Minister for the Environment, Community and Local Government if he will provide an update on proposals to introduce a rental deposit scheme as part of the Residential Tenancies (Amendment) (No. 2) Bill 2012; the form the proposed scheme will take; and if he will make a statement on the matter. [19854/14]

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Written answers

The Programme for Government contains a commitment to establish a tenancy deposit protection scheme. On foot of this commitment I asked the Private Residential Tenancies Board (PRTB) to commission research on such a scheme and to report back to me with recommendations in that regard. The subsequent report assessed a number of different options for delivery of a deposit protection scheme ranging from one where all elements are delivered by the PRTB to one where all elements are outsourced to a private operator. The report examined each option in terms of both insurance and custodial type schemes.

I have considered all of the options presented in the report in order to determine how to offer the greatest protection to tenants at least cost to the Exchequer and in this regard recently secured Government approval for the establishment of a tenancy deposit scheme based on a custodial model. Under the proposed scheme any deposit paid to the landlord by the tenant must be lodged with a deposit protection scheme at the commencement of the tenancy and will be available to be returned to the tenant at the end of the tenancy.

Legislative provisions for the scheme, which are currently being drafted by Parliamentary Counsel, will be included in the Residential Tenancies (Amendment) (No. 2) Bill 2012 at Committee stage in the Seanad.

Private Rented Accommodation Costs and Controls

Questions (124)

Jerry Buttimer

Question:

124. Deputy Jerry Buttimer asked the Minister for the Environment, Community and Local Government if he is considering the introduction of a form of rent cap for residential tenancies; if an analysis has been carried out on the way such a measure might affect the rental market; if not, if such an analysis will be carried out prior to any changes being implemented; and if he will make a statement on the matter. [19855/14]

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Written answers

The private rented sector is an increasingly important element of the housing market, with the proportion of households in the sector almost doubling in the period 2006-2011.

Against this background, the growing evidence of increasing rents, particularly in Dublin, is a cause for concern. The recent publication of the Private Residential Tenancies Board (PRTB) rent index for the fourth quarter 2013 showed a year-on-year increase in rents of 3.3% nationally. However, this national average figure masks differences by property type and location.

Nationally, rents for houses in the fourth quarter of 2013 were 1.6% higher than the same period in 2012 while rents for apartments were 5.2% higher over the same period. In Dublin, rents for houses increased by 6.4% and for apartments the figure was 8%. It is worth noting however that, on average, rents in Dublin are still 15.5% lower than they were at their peak in the fourth quarter of 2007.

The Residential Tenancies Act 2004 prohibits the setting of a rent that is greater than the market rent for a particular tenancy. A difficulty arises when there is market failure and there is evidence of this in the form of a lack of supply of suitable properties, mainly in the bigger cities and especially so in Dublin.

The Government is taking steps to address these challenges in the property and construction sectors. These will include developing an overall strategic approach to housing supply, identifying and implementing relevant improvements in the planning process and seeking to improve financing options for development and mortgage provision.

Resolution of the housing supply situation is a key element in restoring stability to the market. In the meantime, I believe there is scope to explore measures that would protect tenants in the short term from the consequences of market failure. I have asked the PRTB to carry out a focused piece of research that will explore options to address the difficulties being experienced in segments of the private rented sector and to report back to me with policy recommendations in that regard before the end of June.

In doing this, I am conscious of the need to avoid introducing measures that would have adverse consequences on the private rented sector. My goal is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole.

Departmental Schemes

Questions (125)

Michael McCarthy

Question:

125. Deputy Michael McCarthy asked the Minister for the Environment, Community and Local Government when his Department will announce details of the next tranche of schemes to be approved under the capital assistance scheme; when funding will be provided to a group (details supplied) in County Cork; and if he will make a statement on the matter. [19857/14]

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Written answers

Some €35 million is being set aside for a programme of works under my Department’s Capital Assistance Scheme (CAS) which provides funding to Approved Housing Bodies (AHBs) of up to 100% of the approved costs of accommodation for people with specific categories of housing need, including older persons, persons with a disability, homeless persons and victims of domestic violence.

The proposals received from local authorities for inclusion in the programme of works to be advanced under the CAS over the 2014-2015 period are under consideration in my Department at present. I intend to announce details of the projects to be advanced very shortly.

Water and Sewerage Schemes Funding

Questions (126)

Brendan Smith

Question:

126. Deputy Brendan Smith asked the Minister for the Environment, Community and Local Government the arrangements that have been made, following the establishment of Irish Water, to continue the subvention to local authorities in respect of the ongoing costs of running group water schemes; and if he will make a statement on the matter. [19878/14]

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Written answers

The Programme for Government sets out a commitment to the introduction of water charges based on usage above a free allowance. The Government considers that charging based on usage is the fairest way to charge for water and it has, therefore, decided that water meters should be installed in households connected to public water supplies. The Government will decide on the proposed approaches to be taken in relation to the free allowance in the near future including how any such decision might be reflected in the subsidy arrangements that currently exist for the Group Water Sector.

The Water Services (No.2) Act 2013 provides Irish Water with the power to charge for water services. The Act also provides that the Commission for Energy Regulation (CER) will be responsible for the economic regulation of Irish water and the charges to be levied by Irish Water will be subject to the approval of the CER. The CER has already undertaken public consultations on the development of the economic regulatory framework for water services and will be undertaking further consultations during 2014. Water charges will not commence until 1 October 2014 and the first bills will be issued by Irish Water to households from January 2015.

Group Water Schemes that are supplied by way of a connection to the public water supply network will now become customers of Irish Water, having previously been customers of the relevant local authority. Group Water Schemes that have their own water sources will not be customers of Irish Water and will continue to operate as before.

My Department will remain responsible for the overall policy and funding, where appropriate, of the non-public water sector, including the group water sector. Over the past decade, substantial improvements have been made in the group water sector, reflected in improved infrastructure and management and leading to greater compliance with drinking water standards. This has been accomplished through a partnership approach between my Department, the local authorities and the group water sector itself, with the important involvement of the National Federation of Group Water Schemes. The co-operative approach will be maintained as the reform of water services provision is progressed.

Question No. 127 answered with Question No. 119.

Shared Ownership Scheme

Questions (128)

Bernard Durkan

Question:

128. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the action taken to date to address the outstanding issues in respect of existing shared ownership loans and mortgages with particular reference to the extent to which the rental part of mortgage repayments has dramatically escalated with resultant hardship; and if he will make a statement on the matter. [19886/14]

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Written answers

The Government’s 2011 Housing Policy Statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Acts 2000-2013. Details regarding the review are avail able on my Department’s website: http://www.environ.ie/en/DevelopmentHousing/Housing/PublicConsultations/.

In 2013, I asked the Housing Agency to conduct a standalone review of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. While I have received an initial draft of the review from the Agency, a number of issues have been identified that need further detailed financial analysis in order to fully assess the impact on local authority finances of possible mitigating measures. This data collection exercise has been initiated and will inform future actions. Pending full conclusion of this review, my Department issued a circular letter to local authorities setting out some of the options and interim actions that might be explored to alleviate the difficulties of those in shared ownership distress such as allowing use of the Mortgage Arrears Resolution Process and room rental for Shared Ownership mortgage holders. It is accepted that these proposals are not a complete solution to the issues that arise for such mortgage holders but are intended as an interim measure pending outcome of the review.

I fully recognise that shared ownership home owners, amongst others, have been affected by issues such as unemployment and possible negative equity. In such cases, borrowers should actively engage with their lenders, whether a commercial financial institution or a local authority, to seek to avail of one of the options available to provide sustainable solutions to distressed mortgages.

The mortgage arrears resolution process, already in place in respect of commercial mortgages, is now being implemented across all local authorities. In cases of acute mortgage distress, homeowners also have the option of seeking to avail of the legal process now in place to deal with personal insolvency.

On foot of the recommendations of the Keane Report on mortgage arrears, the Government launched a Mortgage to Rent scheme on a pilot basis in February 2012. This scheme was extended nationally in June 2012, targeting those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in their home, while ownership is transferred to an approved housing body and the family becomes a tenant of the approved housing body. Eligibility requirements are in line with other forms of social housing support.

The scheme for local authority borrowers in arrears, which was piloted in two local authority areas, Westmeath County Council and Dublin City Council, was rolled out nationally in February, With the support of the Minister for Public Expenditure and Reform and the Housing Finance Agency, I will be allocating an additional €20m to the Mortgage Arrears Resolution Process (MARP) fund in 2014 to significantly expand the capacity of that resource to assist local authority borrowers in mortgage distress.

Local Authority Housing Provision

Questions (129, 138)

Bernard Durkan

Question:

129. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which contact has been made with the local authorities in the eastern region with a view to addressing as a matter of urgency the serious deficiency in available housing stock to meet the needs of those on the respective local authority housing lists; if the exact number of applicants in these local authorities has been accurately determined; if cognisance has been taken of the rapid increase in rental costs in the private rental sector with consequent hardship on those on the waiting lists; if a particular strategy has been identified to deal with the issue; and if he will make a statement on the matter. [19887/14]

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Bernard Durkan

Question:

138. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the number of persons registered on the local authority housing lists in each of the past five years to date; the extent to which it is expected to address the housing shortage in the short to medium term; and if he will make a statement on the matter. [19896/14]

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Written answers

I propose to take Questions Nos. 129 and 138 together.

The report on the 2011 Housing Needs Assessment contains details on waiting list numbers for each local authority which were recorded from 1993 to 2011 under the tri-annual social housing needs assessment carried out under Section 9 of the Housing Act 1988. The report is available on my Department’s website at http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,27864,en.pdf.

The latest social housing needs assessment was carried out as at 7 May 2013 in accordance with section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the results are also available on my Department’s website at http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,34857,en.pdf.

The 2013 figures are the most up-to-date figures available on waiting list numbers, which are subject to ongoing fluctuation due to households being allocated housing and new households applying for housing support.  However, the 2013 results cannot be directly compared to previous results given that this latest summary employed different methodologies and was the first to be carried out under the 2011 Social Housing Assessment Regulations.

In terms of addressing the waiting list numbers, m y Department intend s to engage further with the Housing Agency and local authorities in terms of carrying out additional detailed analyses of the findings so as to help address the housing need identified in the 2013 assessment. Furthermore, the Government’s 2011 Housing Policy Statement clearly outlines that the priority for Government is to meet the most acute needs of households applying for social housing support. The Government is responding to these needs through a variety of mechanisms and more flexible funding models. To maximise the social housing gain from constrained resources, the Social H housing Leasing Initiative and the Rental Accommodation Scheme each play their part and I am fully committed to capturing social housing gain from private developments. Alongside expanding the role of the Approved Housing Bodies (AHBs) in terms of acquisitions and construction, other mechanisms will include options to purchase within the leasing model and build to lease. 

With regard to households on waiting lists in private rented accommodation, I will shortly be bringing legislation to the House to provide for the Housing Assistance Payment (HAP) programme which will provide a new framework for the provision of rental assistance. The programme is designed to bring all of the social housing services provided by the State together under the local authority system, with local authorities being responsible for all households with an established housing need and ensuring significant efficiencies in the provision of rental assistance.

In 2014, funding for housing, at over €587 million, is effectively maintained at 2013 levels. This includes a €50 million capital stimulus to support construction and related programmes, primarily in the housing area, including €30 million to recommence a State house building programme; €10 million for an unfinished housing estate resolution project; and €10 million for housing adaptation grants.  I expect the final output across all social housing programmes for 2014 to be in the region of 5,000 new housing units.

In March 2014, I announced the approval of some 56 social housing construction projects with an overall value of some €68 million under the Local Authority housing construction programme for 2014-2015.  This new construction programme will deliver 449 new units of accommodation for people on the housing waiting list. Projects were selected for approval on the basis of the proposals submitted to my Department by the local authorities, the relative priority afforded to each of these projects and the overall level of housing need locally.  Also, last month I announced details of a new measure with funding of €15 million which will be invested in bringing some 950 vacant and boarded-up local authority houses back into productive use.

I also intend to announce details very shortly of the allocations to local authorities under my Department’s Capital Assistance Scheme for the construction and acquisition of housing for persons with specific categories of need over the 2014-2015 period. Some €35 million is being set aside for this programme which is intended to deliver in the region of 230 new homes. 

I remain committed to continuing to develop innovative and sustainable approaches to the provision of social housing.

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