Dáil Éireann Debate, Tuesday - 9 May 2023
248. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which his Department intends to select the most vital issues for public expenditure in the current year, having particular regards to the need of housing and health; and if he will make a statement on the matter. [21779/23]
View answerCareful management of our economy and public finances over the past number of years has allowed Government to do the following:
• Firstly, provide increased resources for core public services, investing in quality of life in Ireland to support a strong, fair and equal society into the future,
• Secondly, deliver significant and essential infrastructural projects through our National Development Plan. These projects will support this country’s employment prospects, economic development and regional growth,
• Thirdly, we have put in place considerable supports to provide assistance to our people and businesses towards the external challenges we face, including Brexit, war in Ukraine, Cost of Living and Covid pandemic, and
• Finally, we have achieved all this whilst ensuring our public finances are in a sustainable position.
The Budget Package for 2023 represented an increase of €5.8 billion in core expenditure bringing the total level of core expenditure to €85.8 billion in 2023. The level of expenditure supports existing services, provides services to an increasing and aging population and provides for targeted increases in the provision of critical services and infrastructure including in the health and housing sectors.
Health
The overall 2023 revised allocation for the Department of Health (including the recently transferred disability services) was €23.4 billion – representing an additional €1.9 billion in core funding. This significant investment underscores the Government’s commitment to the delivery of Sláintecare. The progressive reform of the health system to implement universal healthcare and its three critical components : access, affordability and quality.
Funding of €800 million, in addition to the €1.3 billion in core funding, was provided for Covid related activities as we continue our response to the pandemic.
Housing
In terms of housing we are making record investment available again this year to give more people, and families, secure, and affordable homes, and to boost the construction of new homes at scale. Since 2012 the Government has allocated over €5 billion in additional funding to the Department of Housing, Local Government and Heritage. Budget 2023 allocated €6.3 billion to the Department of Housing, Local Government and Heritage, with €2.6 billion allocated to the housing capital programme. Alongside this allocated expenditure, an additional €4 billion in Exchequer investment to housing is available annually up to 2023 through the Housing Finance Agency and Land Development Agency investment.
On 25 April the Government announced additional measures under the Housing for All Plan to make it cheaper to build and refurbish homes, speed up home building and drive down building costs across the board. The new measures will build on the momentum that we’re already seeing this year with work starting on a record 7,349 homes in the first three months of 2023. The measures include:
• Reducing the cost of construction: by temporarily waiving the development levies and Uisce Eireann connection charges, saving up to the value of €12,650 per home on average. This will reduce the cost of building a home and incentivise faster delivery of new supply.
• Increasing the pace at which vacant and derelict properties are renovated for new housing: by increasing the level of the grants to reduce the cost of refurbishing empty homes and making more people and properties eligible to apply. The Vacant Property Refurbishment Grant will be increased from €30,000 to €50,000 for vacant properties and from €50,000 to €70,000 for derelict properties, extended to cover houses built up to 2007, and will be available for properties intended for rental as well as owner-occupied.
• Government subvention towards of the delivery of Cost Rental apartments: The Government has agreed to provide a capital subvention to support the delivery of Cost Rental apartments which will be available to the Land Development Agency and other providers to deliver between 4,000 to 6,000 affordable apartments. Subject to the development of the detailed scheme and the provision of detailed cost estimates, funding of between €500m- €750m may be made available for this initiative.
