Dáil Éireann Debate, Tuesday - 24 May 2016
34. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government his plans for building 1,000 new modular homes; the value for money, business case analyses and delivery feasibility studies on the provision of these social homes; and if he will make a statement on the matter. [11568/16]
View answerIn October 2015, the Government approved the delivery of 500 units of rapid delivery housing for homeless households currently residing in commercial hotels across Dublin. An initial 22 units have been delivered in Poppintree, Ballymun, and another 131 units are expected for completion on four sites in Dublin city between October and December this year, following completion of site preparation works already under way. A further 350 units will be provided across the four Dublin authorities through a national procurement framework overseen by the Office of Government Procurement, OGP, which will be in place by the end of summer. The OGP's procurement framework will be available to all local authorities nationally.
The Taoiseach and I met local authority chief executives on 12 May and I outlined my ambition that the delivery of homes under each of the social housing programmes be accelerated and that the targets be exceeded if possible. I emphasised in particular the potential for an increase in rapid delivery units. In that regard, I have asked all local authority chief executives, particularly those in urban areas, to revert to my Department with proposals that can ramp up the delivery significantly on a national basis.
The delivery of individual social housing construction projects, including the procurement of rapid delivery units, is a matter for the relevant housing authority. In delivering projects, authorities must have regard to instructions and guidance for the management of projects set out in the capital appraisal guidelines and the capital works management framework. In addition, authorities must have regard to guidance documents that have issued from my Department, specifically relating to the social housing investment programme, which require authorities to consider various criteria, including cost and value for money. Ultimately, competitive procurement processes will play a key role in ensuring the best possible value is achieved.
I have given a figure when asked about how many we should be targeting between now and the end of the year. I have said we should set an ambitious figure and see how close we can get to it. It was in that context that I mentioned the figure of 1,000 homes.
I ask this question against the background of a couple of issues that must be stated. NAMA has sold Project Arrow in recent months, with supposedly 50% as residential units that could have been acquired for the guts of €100,000 per unit. We have seen Dublin City Council refuse many units from NAMA in Ballymun because of the tenure mix. I cannot imagine why it did not allow an affordable housing scheme for those who are in well-paid jobs but who still cannot afford to purchase units. I do not know why that opportunity was not afforded to them.
Parallel to this we are spending €260,000 on these modular units. The Minister mentioned that he hopes to see economies of scale in future that might return a better dividend for the taxpayer. It is incumbent on the Minister to tell us what the delay was in procuring these units. Why is the cost of these units so exorbitant? They are to be commended and appropriate, as those of us who have seen them can attest. Will the Minister tell us, and by extension the taxpayer, what economies of scale could be achieved to give a return to the taxpayer? What deficiencies were evident in the process since the Taoiseach announced it 12 or 14 months ago with the former Minister, Deputy Alan Kelly? It was said they would be in use within 12 weeks and that was the Christmas before last.
This comes back to some confusion about what is being built. There were exhibitions demonstrating what modular units could do and what they might look like. They were very attractive units but they were built elsewhere before being transported and laid on a concrete slab. The buildings in Ballymun are very different. They are rapid build houses that look, feel and behave as would a normal modern house. There was a change in approach so we would have long-term solutions for people's housing needs.
The role of NAMA is really significant in facing our housing challenges. It is committing to building more than 20,000 housing units and will be central to projects like the new special development zone, SDZ, at the Irish Glass Bottle site and other sites. I have met representatives of NAMA and have made it very clear that I want the agency to work with local authorities to make properties available for social housing. It is really important not to do what was suggested by some people over the weekend, which is just to build large estates of social housing all over Dublin and in parts of Cork. We need proper diversity and mix in communities, which means there should be private, public and affordable units of different sizes and values. That would bring the kind of community mix needed for new house building.
I have visited the houses in Ballymun and met some of the families there. They were described as modular housing but they are more akin to ordinary housing. The Minister has indicated that there will be 1,000 of these units built across different areas. Does the Minister envisage that these will just be for homeless families or is there a possibility they could be used as affordable housing? I want to clarify the issue. I have spoken to these families and I cannot see how anybody will move them from those houses. These people will not move so will the Government evict homeless families? That is what we will end up with in the near future.
Let us not create a problem that is not there with talk of eviction from new houses and so on. That is not the issue. We are trying to ensure families do not have to live for long periods in hotel accommodation, which is totally inappropriate and very expensive. On all sorts of levels, it should not be happening but it is the only available alternative to those families living on the streets. That is why we are seeing almost 1,000 families in that type of unsuitable accommodation. There is an urgent need to try to re-home them in more appropriate accommodation and find a permanent house for them in time. It remains to be seen whether that can be done at the same time. I see rapid build technologies as part of the solutions for social housing generally, as well as emergency accommodation needs for people living in inappropriate accommodation such as shelters, hotel rooms or bed and breakfast establishments. There will be a combination.
I asked if they would be used for affordable housing. I did not get an answer.
I thank the Minister for his response. I will specifically put a question to him on the SDZ he mentioned, the Irish Glass Bottle site. I welcome the potential that exists there for development in the short and medium term. He mentioned the pivotal role that NAMA will have in delivering 20,000 units and he spoke about the mix that should exist throughout the country, let alone on one site. Will the Minister make a commitment, as a sign of the Government's intent, to increase the measly Part V provision of 10% to 30%, with a 50:50 split between social and affordable housing? Affordable housing is something that people lose sight of, especially for people with supposedly well-paid jobs and who are well qualified. They hope to aspire at least to own their homes but cannot do it because of the market.
It did not work too well when the figure was 20%.
That is irrelevant.
It was never 20% social housing either. It was 10% social housing and 10% affordable housing.
Yes.
We need a baseline requirement for every private housing development in the country, and that is what the Part V provision does in guaranteeing at least 10% in every development.
That means it is 5%.
We need to work within SDZs or with other developers to increase that provision where it makes sense. In certain parts of the country there is not a demand for that, although there is in other parts. We can consider some of the projects that have been a partnership between a private developer and an approved housing body, for example, and that has worked very well. There are purchase-to-lease arrangements and so on. There are many models we can use to get more than 10% social or affordable housing, or rent-to-buy and other schemes that can be put in place. They will be part of big developments like the SDZ on the Irish Glass Bottle site, for example.
