Vol. 508 No. 3
54 Mr. Dukes asked the Minister for the Environment and Local Government the amount of land which has been serviced under the terms of the serviced land initiative; the number of sites for development which are provided on that serviced land; the numbers of housing units which have been constructed on that land; and if he will make a statement on the matter. [18755/99]
Under the serviced land initiative 166 schemes put forward by the local authorities have been approved to service in excess of 15,000 acres of land or more than 100,000 new house sites. Details of the schemes approved are set out in the reply to Question No. 605 on 29 September 1999. All qualifying schemes in the major urban areas and their transport catchments submitted to the Department were approved. Special funding has been provided for the initiative and local authorities, which are responsible for implementing the schemes, have been asked to progress approved projects as a priority.
It is not possible from the returns submitted by the local authorities to indicate the number of new house starts to date that are directly related to the initiative. In all, 99 schemes are scheduled to get to construction this year which will produce in the region of 60,000 additional sites. A further 43 schemes, representing 35,000 more sites, will commence next year. Once a scheme is in progress, work on the related housing can start.
The serviced land initiative is an addition to the schemes in my Department's main water services investment programme which is expanding water services infrastructure generally and increasing its capacity to facilitate new housing and other development. It is part of a comprehensive range of measures to accelerate the supply of housing to achieve balance in the housing market and to stabilise house prices.
Significant progress has and is being made in increasing housing output. Last year's record level of more than 42,000 new house completions is likely to be bettered this year. This is impacting positively on house prices. For example, statistics for the June quarter show significant moderation in the trend of new house prices which are the lowest at any time since 1996. Substantial increases in the volume of planning permissions in the first half of the year also point to increased availability of serviced land.
Is the Minister satisfied that the schemes and associated sites he mentioned are additional to what would have been there in any event? How many of the 99 schemes which he expects to start this year will produce houses this year or next year? Does the Minister agree it is disingenuous to congratulate himself on the fact that the trend in the rate of increase in new house prices is at its lowest since 1996? The Minister is saying that since 1996 new house prices increased at a considerable rate for three years on the trot and they are now increasing only slightly less quickly. The addition to the price of a new house for first time buyers in particular is still crippling.
I am satisfied that the serviced land initiative means increased output in the housing area. The measures are additional to the usual programme in the Department and they are carefully monitored by the Department. The serviced land initiative will provide over 41,000 extra sites in Dublin, almost 4,000 in Kildare, 4,244 in Meath and 4,190 in Wicklow. Cork and Galway will have almost 11,000 extra sites while Limerick will have almost 9,000 and Waterford over 3,000 extra sites. These are the major centres and many other sites will be made available in other areas of the country. I am satisfied that it is an extra provision. I am also satisfied that extra houses will be built this year on foot of the serviced land initiative.
As I said, it is not possible from the returns submitted by local authorities to indicate the actual number of new houses but all the trends, including the increased number of planning permissions and house completions, indicate that the serviced land initiative in addition to all the other measures taken by the Government is having an effect on house prices. Deputy Dukes' assertion that house prices are only increasing at a slower rate than before is—
That is the Minister's assertion.
I presume the Deputy is agreeing with that assertion—
Yes.
—because the figures are there.
They are still increasing.
I presume the Deputy is not asking the Government to undertake a series of measures which would decrease the price of houses and cause negative equity for those who already have houses.
The Minister is scraping the bottom of the barrel. He knows that all Members and every new house buyer would be delighted to see the beginning of a trend of a reduction in house prices. However, we are not likely to see that in the near future. When the Minister pauses for breath during his self-congratulations, would he agree that the figures he gave for the serviced land initiative, to the extent that they mean anything, mean one thing which the Opposition has urged—
The time limit for this question has been exceeded and we must proceed to Question No. 55.
Will the Minister answer my question? Does this prove that the Opposition—
The Chair must apply the Standing Order. I have called Question No. 55.
It is the only way to go. Will the Minister agree with the motion that will be moved this evening to increase—
I have called Question No. 55. The Deputy should obey the rules of the House. I call Question No. 55.
It proves that when the Opposition was in Government, it did not look after the issue of house prices.
People could afford to buy houses then.
The acceleration in house prices started under its stewardship.
People cannot buy houses now.
People cannot afford to buy houses. Prices have more than doubled.
Will the Minister deal with Question No. 55?
