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Thursday, 1 May 2014

Written Answers Nos. 13-21

Rural Development Policy

Questions (13, 22)

Éamon Ó Cuív

Question:

13. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government if he will implement all the recommendations of the recently published CEDRA report; and if he will make a statement on the matter. [19451/14]

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Seán Kyne

Question:

22. Deputy Seán Kyne asked the Minister for the Environment, Community and Local Government the next steps to be taken by his Department in progressing the recommendations pertinent to his Department of energising Ireland's rural economy, the report of the commission for the economic development of rural areas; and if he will make a statement on the matter. [19567/14]

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Written answers

I propose to take Questions Nos. 13 and 22 together.

My colleague Minister Coveney and I established the Commission for the Economic Development of Rural Areas (CEDRA) in September 2012 to recommend ways to support the future economic development of rural Ireland . The Commission was charged with producing a report that would inform policies and strategies to support the economic development of rural Ireland. The central element of the work of CEDRA was an extensive public consultation process involving over 100 meetings with the general public as well as interested stakeholders and rural development experts. The Commission also conducted an extensive research exercise and I am confident that the information that has emerged from this process provides a valuable insight into how Government can support the future economic development of rural areas.

The Taoiseach launched the CEDRA report on 14 April 2014. The report contains 34 recommendations that are far reaching and interdepartmental in nature and in this context will require significant consideration and consultation. The complex nature of the department and agency interactions recommended in the report will require further examination and in this context I am committed to working together with my Government colleagues to determine the best way forward with regard to the implementation of the CEDRA recommendations. In the interim, the CEDRA report will inform the design of the LEADER elements of the 2014 – 2020 Rural Development Programme.

Local Authority Housing

Questions (14)

Patrick O'Donovan

Question:

14. Deputy Patrick O'Donovan asked the Minister for the Environment, Community and Local Government if he will carry out a review of the procedures in place for the letting of local authority houses to ensure that local authorities are not prevented from overly onerous regulations and conditions from letting houses to tenants; and if he will make a statement on the matter. [19458/14]

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Written answers

The procedures for assessing the eligibility of households for social housing support and allocating that support were overhauled and updated in the Housing (Miscellaneous Provisions) Act 2009 and associated regulations and in guidance issued to housing authorities. As regards allocations policy, section 22 of the 2009 Act provides that the Minister’s approval is not required to a housing authority’s allocation scheme but the Minister may direct an authority to amend its scheme and the authority must comply with the direction. The Minister may also issue directions to a housing authority regarding the operation of its allocation scheme.

I keep the 2009 Act and associated regulations under review in the light of experience with their operation at local level and developments in the social housing sector generally. In that context, I will examine any information supplied to me about instances where it is suggested that housing authorities have imposed unreasonable restrictions or conditions on households when conducting social housing assessments or allocating social housing support. However, it will be appreciated that, under section 63 of the Local Government Act 1991, a local authority is, subject to law, independent in the performance of its functions and, as Minister, I am specifically precluded, under section 22(17) of the 2009 Act, from intervening in relation to the procedures followed, or decisions made, by housing authorities in the allocation of particular dwellings.

Question No. 15 answered with Question No. 9.

Rental Accommodation Scheme Administration

Questions (16)

Richard Boyd Barrett

Question:

16. Deputy Richard Boyd Barrett asked the Minister for the Environment, Community and Local Government if he will give a full report on the rental accommodation scheme and leasing tenancies across all the local authorities with regard to the duty of care the local authorities have to the tenants and the impact of rising rents; and if he will make a statement on the matter. [19565/14]

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Written answers

The original objectives of the Rental Accommodation Scheme (RAS) were set out in a Government decision in July 2004 to provide ‘a more structured approach to long-term rental housing assistance need through the development of medium or long-term contractual arrangements with private accommodation providers, along with social housing provision where appropriate’. The current objectives of the scheme are broader and emphasise: housing quality, housing security and tenant choice, alongside the core goals of reducing long-term dependence on Rent Supplement and securing better value for money. Given the current economic situation, growing housing need and a policy shift away from capital to revenue based solutions to responding to housing supports, the objectives set for RAS remain as valid today as they did in 2004.

The quality of housing sourced, security of tenure and, within reason, choice of location are considered to be at the heart of the scheme, and a measure of an authority’s duty of care to its tenants.

RAS involves local authorities paying landlords market rate rents for property they lease, while also seeking discount from the market rate where possible. This is done on the basis of the guarantee of uninterrupted payment of rent for a specific time. In addition, the level of risk being transferred to the authority when agreeing rental prices is a factor to be considered when rents are being negotiated. While authorities will always do what they can in seeking discounts it may not always be possible mainly due to the issue of supply. Obtaining value for money for the State will always be a key factor in determining how an authority proceeds with its efforts to secure accommodation.

The tenant, for their part, has a contract with the housing authority, whereby they agree to pay a rental contribution to the authority based on the relevant differential rent scheme and not to engage in anti-social behaviour. Authorities do have the discretion to transition households on to the differential rents scheme where they feel that there would be a significant increase in rent for the tenant on coming into RAS. It is important to emphasise however that the contribution, i.e. rent, that a tenant pays to the local authority is not based on market rent but on income i.e. the household’s ability to pay.

When transfers first commenced under RAS in 2005 the differences between the minimum contribution on rent supplement (at the time €13) and a payment under differential rent (charges vary from authority to authority) were much more significant. However in recent years the differentiation has narrowed. The rent supplement minimum was changed in the 2011 Budget to €30pw and Regulations currently being drafted under the Housing (Miscellaneous Provisions) Act 2009 will allow for a closer alignment between differential rents and rent supplement contributions in the future. Section 31 of the Housing (Miscellaneous Provisions) Act 2009 will replace, once commenced, existing provisions in relation to differential rent schemes. Regulations and guidelines for housing authorities are currently in preparation in my Department in relation to differential rent payable by local authority tenants under section 31 of the Act. While it is not the intention to implement a national standardised differential rent scheme, the proposed regulations will facilitate a significant harmonisation in the approach by housing authorities to the charging of rent for their dwellings.

In the same way, under the social housing leasing initiative, it is the local authority or approved housing body that contracts with a property owner in a leasing arrangement, to make accommodation available for social housing use. As with RAS the tenant of the local authority or approved housing body pays an income based differential rent to that authority/body.

For both RAS and leasing the tenant’s rent is determined under the local authority’s differential rent scheme and therefore is not impacted by increasing market rents. In this context i t is the local authority/approved housing body and ultimately the State which bears the impact of rising market rents in respect of contractual RAS and leasing arrangements. My Department recoups the cost of these RAS and leasing agreements to local authorities and approved housing bodies.

In addition, all RAS and leasing tenants are social housing tenants and as such the local authority retains the responsibility for their ongoing accommodation needs.

Property Tax Administration

Questions (17)

Brian Stanley

Question:

17. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the way in which local authorities can be expected to vary the rate of local property tax before they know the level of funding they will receive from his Department for 2015. [19463/14]

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Written answers

Under section 20 of the Finance (Local Property Tax) Act 2012, as amended, a local authority may, as a reserve d function, and subject to any regulations made under the section, resolve to vary the base rate of the Local Property Tax (LPT) within its functional area by a maximum of plus or minus 15%. This power will be available to local authorities effective from 2015, as the relevant sections of the Act will come into operation on 1 July 2014.

The Revenue Commissioners must be notified no later than 30 September 2014 of the details of any decision made in respect of the local adjustment factor for 2015 and I understand that Revenue reminded local authorities of this requirement recently. I also understand that the Revenue Commissioners released details of the levels of LPT collected in local authority areas in 2013 earlier this year and, more recently , provided details of the levels of LPT collected so far in 2014, which should provide a useful information source for local authorities; this information is available on the Revenue website – www.revenue.ie.

I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and, therefore, a sounder financial footing for the provision of essential local services; greater local scope for financial decision-making concerning service provision; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.

The implementation of the local variation mechanism for LPT from 2015 will further increase the autonomy of local authorities and Section 20 of the Finance (Local Property Tax) Act 2012, as amended, requires local authorities to have regard to a number of factors in making their decision in this regard, including: the local authority’s estimation of the income it will receive and the expenditure it will incur in the period for which the varied rate is to have effect; the financial position of the local authority, including the amounts standing as its accumulated assets and liabilities not less than one month before the date on which it is proposed to pass the resolution; and the local authority’s estimation of the financial effect of the varied rate on the economy of its functional area, including on those persons who will be liable to pay the tax.

My Department will continue to engage with local authorities to ensure that they are provided with the information necessary to assist them in their deliberations at the earliest possible stage.

Property Tax Administration

Questions (18)

Barry Cowen

Question:

18. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if local authorities will receive 80% of the local property tax in 2015; and if he will make a statement on the matter. [19552/14]

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Written answers

The Government has indicated an intention to move to 80% retention of all Local Property Tax receipts within the local authority area where the tax is raised.

This year, the establishment of Irish Water presents local government with significant organisational and financial challenges. Service provision responsibilities are moving from the local authorities to Irish Water, infrastructure is being transferred, financing arrangements have altered and local authorities are operating on behalf of Irish Water under Service Level Agreements. These changes must be managed.

In this context, it was necessary to defer defining a certain proportion of the proceeds of the Local Property Tax to be retained in each local authority for 2014.

In 2015, in addition to the changes in water services funding, local authorities will be required to implement changes to their budget process arising from EU obligations, which will require them to prepare draft budget strategies by the end of September 2014. Together, these are significant changes to the current local government funding model and it is essential that the impacts are fully assessed and that the effect on overall Exchequer funding is managed appropriately.

I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and, therefore, a sounder financial footing for the provision of essential local services; greater local scope for financial decision-making concerning service provision; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.

My Department will continue to work with local authorities to ensure that they have an appropriate level of information, including in relation to LPT retention, to facilitate their budget process for 2015.

Housing Issues

Questions (19)

Maureen O'Sullivan

Question:

19. Deputy Maureen O'Sullivan asked the Minister for the Environment, Community and Local Government if he will consider incentives to reduce the number of vacant housing units in Dublin such as a tax placed on any property left vacant/derelict for more than one year in the region of €10,000 or more; his proposals to initiate a social housing building programme to ease the housing crisis and provide employment; and if he will make a statement on the matter. [19454/14]

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Written answers

The financial parameters within which we continue to operate will not facilitate an early return to large-scale capital funded local authority housing construction programmes. Earlier this year, I signalled a return to modest levels of new social housing construction with an announcement of 1,000 new housing starts over the 2014-2015 period. I see this as the commencement of a new rolling programme of social housing construction and I hope to be in a position to expand the programme with a new tranche of housing starts next year.

In 2014, funding for my Department’s housing programme, at over €587 million, is effectively maintained at 2013 levels. This includes a €50 million capital stimulus to support construction-related programmes in 2014, primarily in the housing area, including €15 million to kick-start the local authority house building programme and €15 million for a new initiative to return vacant and boarded-up houses to productive use.

In March, 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. With the objective of targeting investment at areas where housing need is most acute, I allocated some 67% of the available funding to housing projects being advanced in the twelve local authorities areas where social housing need is greatest and which, between them, account for some 70% of overall national need.

I am concerned at the high levels of vacant social housing units across all local authority areas, with almost 4,000 properties or just over 3% of the entire stock being vacant at present. Refurbishing vacant properties is a quick and cost-effective means of meeting social housing need and I am determined that no suitable homes should remain vacant when there are families in need of housing. On 17 April I announced details of €15 million in funding which is to be invested in bringing vacant and boarded-up local authority houses back into productive use which will provide 952 homes for families across the country. Funding of up to €30,000 per dwelling will be provided for a suite of retrofitting works to refurbish vacant properties to a high standard. Funding was allocated on the basis of equitable and evidence based criteria which reflect the merit and cost effectiveness of proposals and the degree of local housing need.

Census figures from 2011 showed that over 230,000 houses and apartments, excluding holiday homes, were vacant at that time. While many of these may not be available or suitable for use as social housing units, my Department, the Housing Agency and NAMA continue to work together with housing authorities and the Approved Housing Bodies towards bringing suitable units into social housing use through the Rental Accommodation Scheme and the social housing leasing initiative.

Local Authority Funding

Questions (20)

Éamon Ó Cuív

Question:

20. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the length of time local councils have after spending money on grants for the upgrade of private wastewater systems to make a claim to his Department to recoup this money; if local councils have to indicate to his Department at regular intervals the total amount of grants they are approving; and if so, at what intervals, and the amount that has been approved to date; the systems put in place by his Department to monitor the operation of this grant scheme; and if he will make a statement on the matter. [19452/14]

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Written answers

I understand the question relates to grants payable by local authorities under the Domestic Waste Water Treatment Systems (Financial Assistance) Regulations 2013.

The Regulations provide that, subject to the applicant meeting all qualification criteria, a local authority may pay a grant to a person who is required, following an inspection, to have repairs or upgrades to, or replacement of, a septic tank or other domestic waste water treatment system.

There is currently no time limit for submission of recoupment claims to my Department by the local authorities in respect of any grants they have paid under the regulations. When submitting claims, the authorities are required to provide details of the amounts paid, including the name and address of the person to whom paid and the nature and cost of the works carried out.

Given that responsibility for administering the scheme is devolved to local authorities they are not required to indicate at regular intervals the total amount of grants they are approving. The administration of the scheme will be kept under review and monitored, as necessary, as the level of grant requirements become clearer.

Tenant Purchase Scheme Administration

Questions (21)

Brian Stanley

Question:

21. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government when details of the new tenant purchase scheme will be published; and the way in which it will differ from the old scheme. [19465/14]

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Written answers

The Government yesterday approved the text of the Housing (Miscellaneous Provisions) Bill 2014 and its presentation to the Dáil. Among other things, the Bill will underpin a new incremental purchase scheme for existing local authority houses , involving discounts for purchasing tenants linked to household income, rather than length of tenancy as was the case under the 1995 scheme . However, consideration is being given as to how a weighting could be applied in terms of length of tenancy under the new arrangements. The detailed terms of the new scheme will be set out in Regulations to be made following the enactment of the legislation.

On the initial sale of the house, to the tenant, the housing authority will place a discount-related charge on the property that will dwindle away over a period of 20, 25 or 30 years depending on the level of discount granted, unless the house is resold or the purchaser fails to comply with conditions of the sale. Where the purchaser resells the house at a profit during the charge period he or she will be required to make a repayment to the housing authority based on the discount and the number of years that he or she has resided in the house. The charge operates, therefore, to encourage purchasers to remain in their dwelling for a reasonable period after purchase, thereby fostering sustainable communities.

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