Vol. 575 No. 4
42 Mr. Gilmore asked the Minister for the Environment Heritage and Local Government the additional financial provision for housing contained in his Department's Estimate for 2004; the number of additional dwelling units he expects will be financed by this amount; the average unit cost this represents; the way in which this compares with the average price of a new house; and if he will make a statement on the matter. [28499/03]
The total housing provision, Exchequer and non-Exchequer, for 2004 of €1.885 billion represents an increase of 5.5% on this year's allocation. This increase in the overall housing programme will allow for the needs of about 12,500 households to be met through the various social and affordable housing measures, compared to 8,500 in 1998. The 2004 provision includes capital investment of over €1 billion which will allow for 5,000 starts under the main local authority programme, an increase of 500 above 2003 levels and a further 500 units to commence under area regeneration programmes. The provision will also underpin continuing progress in the voluntary and co-operative housing sector which has been increasing its contribution to the provision of social rented accommodation.
I expect that the average unit cost of a local authority house in 2004, including site cost and fees, will be in the region of €150,000. The unit cost of comparable voluntary housing type units is broadly similar. The cost of constructing social rented accommodation compares favourably with average house prices. The most recent published figures for house prices are contained in my Department's housing statistics bulletin for the June quarter of 2003, a copy of which is available in the Oireachtas Library.
Local authorities also acquire some houses in the market to supplement their construction programmes. The prices paid would be broadly similar to new build costs. The Government is also concerned, having provided additional resources for social and affordable housing programmes, to ensure that we achieve good value for money, maximise the output of units and deliver housing in a manner which creates sustainable communities. At the same time, by focusing on measures to boost overall housing supply, the Government seeks to ensure greater availability of housing, to address issues of affordability and to meet the broad range of housing needs.
The Minister has shifted the goalposts with regard to housing figures. He is now speaking in terms of housing starts, whereas we had usually discussed housing in terms of completions. First, what is the estimated number of completions for 2003 and what will be the estimated number for 2004? Second, I note from the Minister's figures that the number of starts in 2003 is now 4,500. How has that number fallen from the level of 7,000 which we were previously given in this House as the number of starts for 2003?
The 7,000 figure represents the number of starts that were achieved in either 2000 or 2001. That is from where that figure came. I give that answer in good faith. I do not believe that number was promised. It certainly was not promised by me and I am pretty sure it was not promised by the Minister of State with responsibility for housing.
It was promised for 2003.
The Deputy is correct in that, in the overall context, we have tried to manage this budget, even though it has been increasing and has been obvious that the rate of inflation in the construction industry has been increasing. Construction inflation increased dramatically and that had an impact on our capacity to deliver volume in terms of units.
Can the Minister stick to the number of completions?
I do not have the figure for this year but I will get it for the Deputy. I am happy to put it on record. I do not have it because this year is not over yet. I do not know the number of completions, but from memory I am pretty sure it is more than 5,000 units, even though the number of starts this year was 4,500 units.
In the context of the Estimates process, the bottom line in terms of the specific local authority housing programme was to bring the minimum number of starts back up to a level of 5,000 and to at least maintain that number and increase it going forward. That is what we have achieved this year. The Deputy will realise that the figure I require for starts this year is only a small proportion of the cost of delivering the extra 500 houses because the funding grows substantially thereafter. It is the second year before there are completions and a major cost is incurred in the completion of individual houses.
How many more completions will there be in 2004 as against 2003?
I do not have the figures for 2004 and this year is not over yet.
That is unacceptable. This is a simple question.
It is a simple question.
How many houses will be completed this year? This is the ABC of housing. It is not a complicated question.
I will try to facilitate the Deputy. He is asking me in November to guess the number of completions that will have been achieved by the end of the year.
What does the Minister estimate will be the number?
If I guess that number now, the Deputy will be tell me in January that I was wrong and foolish to have guessed it in November. When the final outcome is in place, it will be a matter of public record and the Deputy will be entitled to know it. I am not prepared to guess the number. This information comes through the local authorities, of which there are many. They must file their returns to my Department. When I have all those, I will know the picture. At this point, I do not know what it is.
I believe the Minister is in a position to know it. This is the last week of November and he is not in a position to tell us the number of local authority houses, to within a few hundred units, that will be completed by the end of December 2003. It is astonishing he is not in a position to give us that information. I think he is concealing it.
This question is about the Estimates. In terms of his Estimate, how many additional houses will be produced in 2004? Will he inform the House of the number of completions for 2003? I will not haul him over a barrel if he is out by 100 or 150. I accept the number of completions can have increased a little, but at the end of November he ought to be in a position to tell us how many houses will be completed by the end of the year and how many completions his Estimate will produce in 2004. That is basic; it is the fundamental issue in housing. There is an Estimate for housing and the House and members of the public are entitled to know how many houses that Estimate will produce. This is not complicated.
I can be straightforward on that and tell the Deputy it will be 5,000 houses under that housing programme.
Will they be completions?
Yes, and I hope that the completions will be at least 5,000.
What about 2004?
The figure will be at least 5,000, but I cannot go beyond that because I simply do not know. If I had the information, I would gladly give it to the Deputy.
The Minister drew up the Estimate.
Yes.
On what was the Estimate based?
This is November. The Deputy and others often refer to private companies being able to do everything. I do not operate on the basis of a crystal ball, rather on the basis of the facts.
All I ask for is an estimate.
I do not have it. The Minister of State with responsibility for housing gave the Deputy an answer in that regard.
On what number of house completions did the Minister base his Estimate?
I based it on 5,000.
The Minister plucked the figure out of the air.
I based it on 5,000 units.
