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Dáil Éireann díospóireacht -
Thursday, 9 Dec 2004

Vol. 595 No. 1

Other Questions.

Natural Heritage Areas.

Liam Twomey

Ceist:

6 Dr. Twomey asked the Minister for the Environment, Heritage and Local Government his views on the recent study by Birdlife International that found that 43% of bird species in Europe are under threat; the implications for Ireland’s natural environment; and if he will make a statement on the matter. [32760/04]

I welcome the contribution being made by Birdlife International and locally by BirdWatch Ireland to our understanding of the threats being faced by Europe's and Ireland's birdlife. A total of 43% of bird species in Europe and 31% of bird species in Ireland are recorded as under threat and these figures are clearly a matter of serious concern. On the other hand, some new bird species have recently started to breed in Ireland and other threatened ones have been recolonising their traditional sites.

Changing land use and the intensification of agriculture are considered to be the main factors in the observed declines in many wild bird species. Populations of migratory birds that winter or breed in Ireland can be affected both by conditions in Ireland or elsewhere.

Legal protection for all species of birds is provided under the Wildlife Acts 1976 and 2000. Open seasons and licences for the hunting of certain species are given only on the basis of sustainability and never in the case of threatened species.

The protection of habitats is also a key measure in the protection of our wild birds. Designation of special protection areas and special areas of conservation under the EU birds and habitats directives, respectively, enhances the protection of all birds, in particular those regarded as rare, vulnerable and endangered, including migratory species, and contributes to the maintenance of suitable habitats for wild birds in Ireland. The equivalent of 14% of the country's land area is covered by these designations and 110 SPA sites have been designated specifically for the protection of wild birds. I will shortly make the legal instruments designating a number of further special protection areas largely on uninhabited islands off the west coast.

I also welcome the changes in EU support for farming, notably decoupling and a drive towards more ecologically aware farming practices under the rural environmental protection scheme, which provide incentives for a deintensification of farming that should benefit our wild bird populations. This combination of specific protection for species, the protection of important bird habitats, and changes in farming practice will bring about improvements to the environment and prospects for our resident and visiting species of birds.

That species of birds are under threat indicates what is happening to our environment and serves as a warning to us regarding global warming. I welcome the Minister's commitment to making progress on this issue.

Does the Minister believe that, in terms of the Kyoto agreement and what we are doing about global warming and related issues, we need a new approach in Ireland, particularly in the context of polluting industries? Could we have a cross-party review in this House to discuss what we need to do regarding all these matters? What is happening to birds is but one indicator of environmental problems. There are many others. Global warming is the real threat, given recent weather patterns, storms, flooding and so on. It is a very serious indicator that things are really bad and we need to do much more. Perhaps this is something we can all do together.

National surveys have been and continue to be carried out using standard approaches and methodology. The protection afforded by the designation of the special protection areas, the natural heritage areas and the special areas of conservation will contribute to the maintenance of suitable habitats for wild birds. Together with the environmental benefits from improved practices under the rural environment protection scheme operated by the Department of Agriculture and Food, that will represent a significant benefit for the protection of our birds. I re-emphasise that there are indications that other species of birds are now beginning to manifest themselves in Ireland that are becoming extinct in other countries. The basis of the Deputy's question does not, therefore, hold. However, there is much work to be done and we will continue with that. I hope the further designation I will announce in the near future will help.

House Prices.

Seán Crowe

Ceist:

7 Mr. Crowe asked the Minister for the Environment, Heritage and Local Government if he anticipates that house prices will rise as a result of the changes introduced in the budget regarding stamp duty; and if he will make a statement on the matter. [32741/04]

Pádraic McCormack

Ceist:

8 Mr. McCormack asked the Minister for the Environment, Heritage and Local Government his views on whether the revised predictions for house price growth will lead to a further distortion of the housing market, with fewer first-time buyers able to purchase their own home; and if he will make a statement on the matter. [32753/04]

Ruairí Quinn

Ceist:

87 Mr. Quinn asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the housing statistics bulletin published on 16 November 2004 which showed that the average price of a new house had increased by almost €24,000 nationally and by almost €34,000 in Dublin since the beginning of 2004; if he has plans to implement a new strategy to reduce the spiralling costs of house prices here; and if he will make a statement on the matter. [32679/04]

I propose to take Questions Nos. 7, 8 and 87 together.

The rate of house price increase has generally declined in recent quarters and is now considerably lower than in the late 1990s. Increases in the June quarter of 2004 were generally lower than at any time since early 2002 and were much lower than in the June quarter of 2003. Most commentators predict that the trend in prices will increasingly moderate in the coming months and years. The likelihood of this is underpinned by the trend of housing output, with a further record level likely to be achieved this year and indications of a continued very high level of output in 2005 and subsequent years.

The Government will continue its strategy of promoting a high level of housing output to meet demand, achieving adequate output in all areas and pursuing a range of measures to assist affordability, particularly for first-time buyers. The affordable housing initiatives introduced by the Government are showing increasingly positive results and it is expected that up to 11,000 units will be provided between 2005 and 2007.

The stamp duty reductions announced in the budget will further assist affordability for first-time buyers with savings of up to approximately €12,000. This will help some first-time buyers to afford a starter home who might not otherwise be able to do so. It will help to open the second-hand market more to first-time buyers who had been increasingly deterred by the impact of stamp duty. The likelihood of causing increases in house prices is minimal in the context of high levels of housing output and because the reductions have been confined to the first-time buyer segment of the market. The reductions in stamp duty for second-hand houses should have a restraining effect on new house prices by removing distortion between the two categories and reducing the degree of concentration of first-time buyer demand on the new house market.

The indications for the coming year in regard to overall housing output, affordable housing and house price moderation are positive. The Government will ensure that effective policies continue to be applied and reviewed as necessary in the light of developments, with the overall aim of meeting the broad spectrum of housing need in the context of balanced and sustainable growth of the housing market.

The Minister referred to a range of measures to assist first-time buyers. What are the measures and will he itemise them? On budget day, the Minister of State may have heard an interview with an auctioneer who stated it was his belief that the adjustments to stamp duty on second-hand homes would have no effect on the price of housing. The auctioneer argued that the market value of properties would simply move upwards. Would the Minister challenge this assumption by a senior auctioneer? What is the Minister doing to bring down the price of houses? For example, when will the ninth progress report of the All-Party Oireachtas Committee on the Constitution, which made firm recommendations, be brought forward? It is a document suggesting a range of measures which all agree would have significant impact on the price of houses, new and second-hand.

I saw the interview with the auctioneer on budget day, which showed that there are many sides to this argument. He stated that the job of the auctioneer is to try to beef up the price to the maximum on behalf of the seller. Whatever about his belief, since then I have talked with some potential buyers in their late 20s and early 30s, and the perception of young potential first-time buyers is that the budget measure is very helpful and positive. I am sure the Deputy has also met some who appreciate it. They strongly believe it will be of benefit to them, which it will.

The measure should take the pressure off the new house market because what happened in recent years, perhaps because of the burden of stamp duty, as people saw it, is that first-time buyers concentrated on the new house market and shied away from the second-hand market. This will help to rebalance the market to some extent.

With regard to the range of measures, there were previous reductions in stamp duty before last week's significant reduction, and changes were made to mortgage tax relief two budgets ago. Moreover, the Department now spends over €20 million per year on site subsidies, specifically geared at buyers in a particular income bracket. There is a range of measures to help people in specific income brackets.

On the Deputy's other point in regard to the All-Party Oireachtas Committee on the Constitution, previous commitments were given that we would debate its report in the House when the National Economic and Social Council report was published. I hope the NESC report will be published soon after Christmas. The Goodbody report and the NESC report consider different aspects of the matter and we will have a debate on the overall issue in the new year.

I welcome the abolition of stamp duty for first-time buyers. Given the significant difference in house prices between Dublin and the rest of the country, does the Minister believe the ceiling of €317,000 will benefit fewer than would wish to gain from it? The average price of a house in Dublin is approximately €317,000 as we approach the end of the year. Therefore, the average first-time buyer in Dublin will pay stamp duty whereas the average first-time buyer outside Dublin will not. There is an inequality in this regard that could be addressed.

Will the Minister consider introducing a special savings scheme for first-time buyers whereby, for example, for every €3 they would save, the State would contribute €1 over the same period as the present special savings incentive scheme. This is important to first-time buyers who contact me and there is significant interest in the implementation of measures specifically aimed at the young. However, we need to do more. What is the Minister's view on these issues?

I accept that prices in Dublin are higher than elsewhere. However, for good or ill, with regard to loan limits it has always been policy to treat the country as one and to maintain the same limits in all places. While I accept the average price of a house is as the Deputy stated, when the figures are trotted out each month by the Department or others in the business, the overall average house price is not necessarily the average price of a starter home. There is a significant difference between the two. These figures are repeatedly published but when I opened different affordable schemes in County Dublin in recent weeks-——

There are only 300 affordable homes in the country. The Minister is dreaming.

In recent weeks, in Balbriggan, which Deputy Morgan knows well, we opened affordable homes priced at €140,000 for two bedroom homes and €160,000 for three bedroom homes.

It is perhaps seven years since they were announced.

The average house price includes houses worth €1 million and €5 million. Statistics sometimes do not show the reality in regard to starter homes.

We are talking about the mean.

"Mean" is the word.

I accept that the problem for many young people is acquiring a deposit. I hope to bring a Bill to the House next week in this regard. Up to now, the State exclusively funded affordable homes. However, for some time we have tried to involve private enterprise in this. It is now happening and private enterprise will provide 97% loans, which will help. However, I accept the greatest problem for many young people is not getting the mortgage but getting the deposit. I do not want to show my age but in my time, young people were encouraged to save for this type of thing rather than blow €200 on a Friday night and the same again on a Saturday night. However, I accept the Deputy's point.

How does the Minister of State expect them to save if they are spending €1,000 per month on rent?

The measures in respect of stamp duty in last week's budget will greatly assist those people because it will relieve the burden of this one-off payment.

I thank the Minister of State for sharing with us the information that he still has his Confirmation money. He drew a distinction between the average price of a new house and of a starter home. What is the average price of a starter home in Dublin, excluding affordable housing? He expressed confidence that house price increases were moderating and that the measures in the budget would not add to house price inflation, about which I hope he is right. By how much does he expect the average house price to rise in 2005?

For all its talents, the Department does not make projections or predictions in regard to forecasts——

How can the Minister of State say house prices will moderate?

Most of those who make predictions have talked about a 10% increase this year, a 5% to 8% increase next year and a 0% to 4% increase the following year. The trend is definitely downwards and has been for a few years. I hope that will continue.

There are no official statistics on the average price of a starter home. Information on it is anecdotal.

The Minister of State is spoofing.

He is on the ground and knows what is going on.

I am on the ground too.

The Deputy is on the ground in a more rarefied place than the Minister of State.

The price of a starter home would be different there.

The price would vary from the north side of the city to the south side. The price of a starter home is an average price. If one looks at the newspapers each week, one will see there are many starter homes in the €200,000 to €250,000 market. In the affordable bracket under the 1999 scheme, prices range from €150,000, €170,000, €180,000 to €195,000. In my area and in places like that, prices are in that bracket. Obviously, houses on the south side would be more expensive.

That is for sure.

Perhaps it is a nicer place to live with a more expensive image and so on.

If one looks at the affordability index, the percentage of take home pay most people pay towards their mortgage is still around 32% which, by and large, is not hugely different from what it was, say, in the early 1990s. It was very bad then, but it improved. Of course, it got worse again. However, for most people, the deposit is the problem. Most people can manage to pay their mortgage once they get it. People perceive the initial deposit and the stamp duty on secondhand houses as being the problem. The measures in last week's budget will certainly be of considerable help.

What about the removal of the new house grant?

The Minister of State is making remarkable claims given that he cannot tell us the average price of a starter home or by how much he expects prices to rise next year. The average price of a house in recent years has been increasing at an average of approximately 12%. Is the Minister of State saying that the average price of a house in 2005 will not increase by more than 12%? When he said house prices will moderate, by how much less than 12% does he expect them to rise? Given that the Government made a concession in the budget to demands from this side of the House on stamp duty, I find it unbelievable that it would not have modelled how that would play out in terms of house prices. What is the expectation of house price increases in the coming year?

I welcome the adjustments made in last week's budget in respect of stamp duty. Given that there is a new Minister in the Department, would the reintroduction of Part V be considered to assist in the housing crisis?

I tried to answer Deputy Gilmore. House price increases were running at approximately 12% but the rate of increase has been dropping slowly.

Will it be less than 12% next year?

Yes. Most predictions indicate that by year end, it will be approximately 10%. The predictions of those who make such predictions are that, next year, it will be in the region of 5% to 10% or 6% to 9% and that the following year, it will decrease further.

A rate of 5% would be very good.

It is all about supply. Supply is increasing all the time and it is the answer in trying to bring moderation to prices. House completion figures for this year look like being 75,000. The Deputy will recall that in the early 1990s, figures ranged from 20,000 to 30,000. In 1993, the figure was 22,000 and last year, it was 68,000.

It is very funny that the ordinary worker could afford to buy a house back then.

This year, the figure looks as if it will be more than 75,000. If we can maintain that level of output, those who make these forecasts say prices should calm down.

Will it be between 5% and 10%?

A rate of 7.5% is too high when inflation is under 3%.

Water Pollution.

John Deasy

Ceist:

9 Mr. Deasy asked the Minister for the Environment, Heritage and Local Government his views on the comments of a person (details supplied) who claims that the river pollution is turning Ireland into an environmental time-bomb; and if he will make a statement on the matter. [32763/04]

Róisín Shortall

Ceist:

17 Ms Shortall asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the warning given by a person (details supplied) at the recent Irish environment conference, that Ireland is sitting on an environmental time-bomb, due to the alarming levels of pollution flowing into our rivers; the steps being taken to combat river pollution; and if he will make a statement on the matter. [32688/04]

I propose to take Questions Nos. 9 and 17 together.

I understand the paper to which the questions referred was on eutrophication of inland and estuarine water and was delivered at an Environmental Protection Agency conference in November 2004. The author described the potential scenario of a build-up of phosphorus to a critical level over time in the soil of agricultural land due to the over-application of artificial fertiliser and manures. Where over-application takes place, the capacity of the soil to retain inputs of phosphorus may be exceeded leading to the loss of the excess phosphorus to receiving waters and the eutrophication of these waters.

The paper did not claim that this scenario actually obtained at present or that there is a widespread, serious or immediate risk to Ireland's river water quality. Rather, while referring to this potentially serious situation, it highlighted conclusions of the EPA that Irish river water quality is among the best in Europe with two thirds of rivers unpolluted.

As part of the implementation of the EU water framework directive, my Department has been promoting the establishment by local authorities of river basin management projects. The directive requires us to maintain high quality water status and to restore polluted rivers and lakes to at least good status by 2015.

The EU nitrates directive aims to protect waters against pollution from agricultural sources, including both nitrates and phosphates, with a primary emphasis on better management of livestock manure and other fertilisers. Ireland's national action programme under the nitrates directive was submitted to the European Commission on 22 October last. The action programme provides for a range of necessary measures to strengthen the application of good agricultural practice countrywide to protect water quality from pollution from agricultural sources. I understand that the Commission will formally respond to Ireland on this matter in the coming weeks.

The EPA conference document stated that one third of all rivers are now polluted and there is a danger that the crisis could spiral out of control unless urgent measures are taken. There is a serious problem, therefore, and notwithstanding what the Minister of State has said, we need to do more about it. The Minister, Deputy Roche, appeared on a recent television programme which was very informative and raised the serious issue of leechate from dumps getting into the water supply. I do not wish to be confrontational about this but my question concerned the EPA's office of environmental enforcement. I appreciate that the agency is an independent, stand-alone body with rights and obligations. When the EPA identified problems and issued directions against two local authorities, one in Wicklow and the other in Kildare, the Minister refused to intervene saying he has no role in the matter. The Minister has a role, however, and he should be much more proactive. Local authorities are there to police environmental legislation and control those who are illegally dumping and polluting the environment, including rivers, so the Minister must act. He cannot sit back in the comfort zone of the Custom House and pretend this is not happening, because it is.

There are two questions to respond to here. I want to be absolutely fair to Mr. McGarrigle. His paper emphasised that Irish rivers are generally of better quality than those of most other European countries. He took issue with the article as it appeared.

The Deputy also mentioned that my Department has put in place funding for enforcement by the EPA. Polluters must be brought before the courts. That is the Department's view and I expect that the EPA, which is independent, will apply the law as it is laid down.

Local authorities are being directed by the EPA to do their job but the Minister is not doing anything about that. Some local authorities have been found not to be obeying the instructions of the Environmental Protection Agency. The Department of the Environment, Heritage and Local Government should be dealing with any local authority against which EPA directives are issued. If they are not doing their job, county managers should be told to manage the environment properly, which is what they are supposed to do.

The EPA is taking action against local authorities that are not complying with environmental policy. The Department would have concerns if any local authorities were not taking the necessary action. In such cases, it would exhort the EPA to ensure such authorities were brought to heel and prosecuted in the normal way.

I genuinely wonder if we are talking about the same conference and the same report. What are the Minister of State's views on the comments made by the EPA director general, who expressed dissatisfaction that 30% of rivers and lakes nationwide are polluted? In addition, those rivers and lakes which were previously regarded as being slightly polluted are now becoming moderately polluted. That does not seem to square with what the Minister has told the House.

Absolutely.

As I understand it, the paper did not address the kind of point-source pollution to which the Minister of State seems to be responding but rather the more insidious ongoing pollution arising from spreading fertilisers and malfunctioning septic tanks. The paper observed that half of all septic tanks are not functioning properly. Does the Minister of State or his Department know anything about that? It seems to be an extraordinarily high level of malfunction for septic tanks. Does the Minister of State have a comment or observation to make about that?

The question posed by the Deputy is obviously the basis for a separate question——

It relates to the same conference.

——which would require a far more detailed answer. The earlier question related to an article that appeared and the subsequent statements that were made about it. We are concerned about water quality and the Department is making a major investment in small rural water schemes. Currently, 50 group water schemes are part of the overall programme dealing with the issues the Deputy has raised. They will obviate the necessity for septic tanks.

The Department is concerned about septic tanks and I will deal with that issue under a separate question.

I will table such a question.

The issue needs to be addressed seriously to ensure compliance so that such tanks are properly maintained.

Does the Minister accept the finding of Mr. McGarrigle, that 30% of rivers and lakes nationwide are polluted?

I have answered that question. The Department is concerned about this matter but a major framework directive is in place.

Is it 30%?

The EPA report states that it was 30% and obviously that is a matter of concern, but we are taking action to ensure the situation is rectified through the EU nitrates directive, the water framework directives, and through the ongoing work of the EPA. Unprecedented funding is going into the whole area.

We know that.

An Bord Pleanála Annual Report.

Joe Costello

Ceist:

10 Mr. Costello asked the Minister for the Environment, Heritage and Local Government if he will make a statement on the publication of the annual report of An Bord Pleanála for 2003; and if he will make a statement on the matter. [32691/04]

The annual report of An Bord Pleanála 2003 was laid before the Houses of the Oireachtas on 23 November 2004 and published. Copies are available in the Oireachtas Library. The report is very positive and shows that the board's performance on decision times, planning appeals and major local authority projects continues to improve significantly, notwithstanding an increase in the board's workload, which is up 4% in 2003 compared to 2002. The board met the statutory objective timeframe of 18 weeks for making a decision on a case in 74% of cases in 2003. This has increased to 82% in the first three quarters of 2004. The average time taken to dispose of cases has been reduced from 16 to 14 weeks to date in 2004.

This substantial improvement in performance was due largely to the board clearing the backlog of cases that had built up over a number of years. The board and its staff achieved this by a steady improvement in their productivity and efficiency, including the use of fee-per-case inspectors and outside consultants.

The report shows that in 2003 the percentage of local authority planning decisions appealed continues to be about 7% of the total number of planning applications made. The number of local authority planning decisions reversed by the board was 30%, compared to 33% in 2002. First party appeals against refusal resulted in grants of permission in 22% of cases compared to 20% in 2002, while third party appeals against grants of permission resulted in 41% of refusals compared to 45% in 2002.

Under the Planning and Development Act 2000 a number of functions previously exercised by the Minister for the Environment, Heritage and Local Government, such as the determination of compulsory purchase notices, certification of local authority projects requiring environmental impact assessment, and motorway and other road schemes, became the responsibility of the board. Timely decision making on these schemes is critical to the delivery of the national development plan and future infrastructural development. The board received 97 such cases during the year and disposed of 92.

An Bord Pleanála provides a service that is critical for the development of the State, through the decisions it takes on major local authority infrastructure projects and its independent adjudication on planning appeals and related cases. To ensure the board can continue to deliver on its statutory objective to determine cases within 18 weeks, I will make additional financial resources available to it in the coming year. A significant portion of this will go towards the improvement of the board's information and communication technology capabilities. The additional resources will ensure the board can continue to offer an effective and timely service to all participants in the planning process. My Department will continue to monitor closely the board's performance in this area.

I recently met senior officials from the board and was impressed by their dedication and the effort they have expended in clearing the then unacceptable backlog that was criticised on all sides of this House. Their level of efficiency and application is to be commended.

I welcome the improvement in the output of An Bord Pleanála and the reduction in waiting times. What is the Minister's response to the comments made by the chairman of the board in the report, in which he seems to seek Government direction or new departmental guidelines in respect of three areas? The first of these is what he described as the poor quality of design evident in some housing developments. His second criticism related to the incidence of inappropriate 1970s-style suburban developments around many villages. Third, he criticised the poor quality of some section 50 student accommodation developments, in regard to which he observed that the relevant departmental guidelines relate only to space and that there is a problem with quality. Will the Minister consider those guidelines and perhaps revise departmental guidelines with a view to improving quality of design and addressing the issue of inappropriate development around villages and the quality issue in respect of section 50 developments?

As I have said, I am impressed by the chairman, the work of the board and the contents of the report. I will be conscious of the points made by Deputy Gilmore. He is correct in that the chairman drew attention at the launch of the report to poor design standards in many of the suburban estates around towns and villages, particularly in regard to living environments for occupants. I agree with the board that developers should be required to ensure high standards and will be calling on local authorities to pay attention to these design issues. I will consider all aspects of the report, including those to which the Deputy has referred in his comments on section 50 developments. I am aware of some criticisms that have existed for some time in that regard.

Written Answers follow Adjournment Debate.

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