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Dáil Éireann díospóireacht -
Tuesday, 17 Jun 2014

Vol. 844 No. 1

Priority Questions

Property Tax Rate

Barry Cowen

Ceist:

62. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government when he will publish regulations outlining the procedures local authorities must adhere to regarding changing the local property tax within the allowed 15% limits; and if he will make a statement on the matter. [25604/14]

Under the Finance (Local Property Tax) (Amendment) Act 2013, councillors and councils were empowered to vary the rate of the property tax by 15% on a plus or minus basis. As the Minister knows, that legislation provides that the Revenue Commissioners must be informed and given notice of this by 30 September of the preceding year. The legislation also states that the regulations must be put in place by the Minister to allow for a period of consultation to be embarked upon with the representatives of the local authorities. It appears those regulations are on the Minister's desk. Will he publish those regulations immediately? Will he allow councils and councillors the authority to live up to their commitments to their electorate to vary the property tax downwards?

Effective from 1 July 2014, local authorities may vary the rate of property tax in their administrative area for the following year by up to 15% of the basic rate of the tax. As Deputy Cowen said, the decision must be taken by resolution of the council and must be notified to the Revenue Commissioners by 30 September in order to apply for the following year.

There are certain factors that local authorities are legislatively bound to take into account when deciding whether to vary their property tax for a given year. These include expected income and expenditure, accumulated assets and liabilities, and the economic impact in their local area. The decision is not one that can be taken in isolation as it will have a direct impact on the overall level of funding available to local authorities and, therefore, on their ability to discharge their statutory responsibilities. The financial implications of any decision to vary must be considered.

The power to vary the rate of local property tax, LPT, has been conferred on local authorities to further increase their autonomy. Elected members are already responsible for finalising the annual budget of the local authority – it is a reserved function for them – and the power to vary LPT will enable them to influence directly the level of local property tax income they have to meet their expenditure requirements in the future.

I will make regulations in the coming weeks to set out the process for local authorities who wish to vary their LPT base rates, including the factors they must consider and the type of public consultation they should undertake as part of the process.

I thank the Minister for his response. I take it from what he said that there would be no impediment from his office in cases where councils wish to vary the rate downwards for whatever reasons they see fit, based on consultations members have had with the electorate in recent months which culminated in their election. Could the Minister confirm that we will not have a repeat of last year's debacle when, having committed local property tax funding to local authorities, they had it taken from them? Could he confirm that the funding collected this year, or at least 80% of it, which was originally the intention of Government, will be forthcoming to local authorities where it is collected? I seek assurance that where the local property tax revenue exceeds the general purpose grant of the preceding year, no limits would be placed on the local authority in terms of the funds it has collected?

The Government has indicated its intention to move towards 80% retention from 1 January 2015 and the remaining 20% of the tax will be used to assist weaker authorities in terms of the equalisation of funds. Naturally, the priority for the equalisation would be to support the local authorities with a weaker funding basis. I expect to notify local authorities in the coming weeks of those decisions. A public consultation process will take place from the middle of July for approximately one month and then local authorities will be in a position to make a decision in good time, as they must do in line with the legislation and with their electoral mandate to notify the Revenue Commissioners by 30 September 2014.

I am pleased to hear it is a firm commitment that the funds raised by means of property tax this year will be retained by local authorities and we will not have a repeat of what happened last year in spite of the commitment made. Perhaps the Minister could respond to my question on a situation where a local authority's collection surpasses the grant of the previous year. Is it the case that what is collected locally will remain locally and there will be no restraint on local authorities?

I can confirm to the Deputy that local property tax is a discretionary income that is collected locally and the maximum autonomy will be given to councillors in order to discharge their functions in respect of the income and expenditure, which they can vary up or down as the case may be in terms of the service provision they wish to apply. I expect the new found powers of councillors will be welcomed, even though during the course of the debate on the legislation on local government reform it was said that we were not giving additional powers to local councillors and that we were just getting rid of councils. One can now see the fruits of the type of decisions that will be made in the context of financial autonomy for councillors who must make important decisions about the level of service they wish to see across the board. That will influence the level of property tax they wish to apply in their administrative area.

Social and Affordable Housing Provision

Brian Stanley

Ceist:

63. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the plans that have been put in place to address the shortage of social housing in County Laois; and if he will to set out a timeframe to address the issue. [25601/14]

This question relates to the need for a social housing building programme in County Laois. There are 1,450 people on the county’s housing waiting list with up to 1,063 alone having put Portlaoise as their first place of choice for a house. On the Laois side of Portarlington, there are 381 people in need of housing which does not include the Offaly side of the town. Will this be addressed as a matter of urgency?

In February 2014, Laois County Council was allocated €242,186 to complete works on several projects under the social housing construction-acquisition programme. In March, I approved funding of €750,000 in respect of the delivery of six housing units in Laois under the 2014-2015 local authority housing construction programme. In May, I approved funding of €397,620 for Laois in respect of the delivery of four units of accommodation for persons with intellectual and physical disabilities under the 2014-2015 capital assistance scheme, CAS, for the construction and acquisition of housing for people with specific categories of housing need.

Earlier this year, I also announced details of a measure with funding of €15 million to bring 952 vacant and boarded-up local authority houses, known as voids, back into productive use. Laois was allocated funding of €73,900 in respect of 13 voids. My Department has, to date, issued approval for 199 units in Laois to be brought into social housing use under the social housing leasing initiative.

The rental accommodation scheme, RAS, was established with the dual purpose of eliminating long-term dependence on the supplementary welfare allowance rent supplementation scheme and enhancing the capacity of local authorities to respond to long-term housing need. As of the end of March 2014, Laois has transferred 554 households from rent supplement, 356 being housed directly under RAS and 198 accommodated mainly in standard social housing.

Laois has also been allocated €367,259 under the special resolution fund for unfinished housing developments for 2014 in respect of five developments. The completion of these works will help to bring 25 units onstream, some of which will be for social housing use.

Future social housing delivery will be guided by a new social housing strategy, preparation of which has commenced and which will be finalised at the end of the third quarter of 2014.

I thank the Minister of State for her reply. Some of the information she provided is useful but she has sidestepped my main point. What County Laois needs is a substantial social housing programme. Significant land parcels are in the council’s ownership, such as five acres in Portlaoise and two acres in Portarlington. A further 23 acres in Mountrath, Rathdowney, Durrow and Ballinakill are in the ownership of the Housing and Sustainable Communities Limited, the NAMA for local authorities set up several years ago. These could be transferred back to Laois County Council, giving a total of 30 acres of land available for housing. A small fortune is paid out in rent supplement in the county while there is a need for social housing with 1,450 on the waiting list. Will the Minister approve a social housing building programme for the county as it would be a win-win situation in dealing with the housing list and providing employment for the large number of unemployed building workers in the county?

As I have said many times before, if we had the capital, we would all like a much larger social housing programme. While we have some commenced mainstream social housing construction, we are exploring whether we can introduce more substantial building programmes that would be off the Government’s balance sheet because we are still constrained by certain fiscal requirements which we, unfortunately, cannot get around. In the meantime, wherever else I can get funding, be it through stimulus or other programmes, we will construct as many houses as we possibly can. Many of the 1,450 on the waiting list in County Laois are on rent supplement and will be transferring to the housing assistance payment in the near future when the required legislation is through and the payment is rolled out across the country. Many of those on the housing list are getting support from the State but, obviously, we want to provide as many social housing units as we can. We have fiscal constraints but we are using every possible measure to find funding for social housing. We will continue to explore those avenues.

The housing assistance payment is a name-change for rent supplement which will now be paid out by the local authorities instead of the Department of Social Protection. That rent subsidy is costing a fortune.

I am not arguing that people should not get it. People should do so in the short term, but it was not designed to be a long-term measure. If we had a housing programme then building workers could go back to work, the State would receive PAYE, income tax, universal social charge and PRSI and money spent on rent supplement would be saved. The State would receive in VAT 13.5% of the price of all materials used in the construction of houses. Houses can be built cheaply at present. Local authorities would obtain assets from which they can earn rent for years and then sell on.

I understand the position with regard to off-balance sheet issues and that money cannot be pulled out of the air, but there are facilities through the European Investment Bank and the strategic investment fund, which was the National Pension Reserve Fund. There is also the option of establishing trusts to draw down money and establish funding through housing bonds. This has been done in other countries, including capitalist Britain, so there should not be an ideological problem for the man from Fine Gael sitting beside the Minister of State. He cannot have a problem with it if the British Tories allow it to happen in England. As the Minister of State and a representative of the Labour Party I ask the Minister of State to move on this issue because there is a crucial problem. If one walks around the streets of Dublin in the evening or early morning one falls over people sleeping in doorways. The same problem does not exist in parts of the country outside the city, but County Laois and other midland counties have a huge problem with housing waiting lists. Will the Minister of State consider this as a matter of urgency and address it? She stated she is exploring it but she needs to do more than that. People are homeless and we need to find solutions.

I ask Deputies to keep within the time limits.

Those areas are all being explored under the Government's construction 2020 strategy and the social housing strategy we will publish later this year. We are exploring all of these and will use whatever we can. There is no ideological problem, if I can answer for my colleague-----

I am glad to hear it.

-----for either Government party.

Not like the communists in Europe with whom Sinn Féin is joined.

There is an advantage in the housing assistance payment, HAP, for tenants in so far as they will pay rent the same as local council tenants. At present they have much more insecurity with regard to rent support. There is definitely an advantage for people on rent supplement at present who go on to HAP. They will be allowed to go back to work and retain housing support although the rent will be based on income. This is an improvement and removes the poverty trap of people being afraid to go to work because they are in receipt of rent supplement.

Pyrite Issues

Mick Wallace

Ceist:

64. Deputy Mick Wallace asked the Minister for the Environment, Community and Local Government his views on the recent interim advice note published by the Association of Consulting Engineers on the apparent discovery of pyrite in concrete blocks provided by block manufacturers; if he will outline the required testing standard and testing method for concrete blocks; his views on the implications for affected buildings and the way responsibility for same will be dealt with; and if he will make a statement on the matter. [25602/14]

The Minister is aware the Association of Consulting Engineers published an advice note on 15 May about cases of apparent pirate content in concrete blocks provided by block manufacturers. The Minister has been assuring us for a while that with the new regulations everything would be well but clearly everything is not well. How will the Minister address the latest problem?

The reason I introduced the new regulations is because everything was not well. I acknowledge the proactive approach of the Association of Consulting Engineers in highlighting this matter. It is entirely appropriate that all professional bodies involve themselves in disseminating such relevant information among their membership.

Under the construction products regulation, manufacturers are required to provide robust and reliable information in a consistent way for construction products which are covered by harmonised European standards or European technical assessments. Since 1 July 2013, manufacturers are required, when placing a construction product on the market, to make a declaration of performance and affix the CE mark to each product. The relevant harmonised European standard for concrete blocks is IS EN 771-3:2011 Specification for masonry units - Part 3: Aggregate concrete masonry units (dense and lightweight aggregates).

Harmonised European product standards provide the methods and criteria for assessing the performance of construction products in relation to their essential characteristics. The harmonised standard includes the technical data necessary for the implementation of a system of assessment and verification of constancy of performance including third party oversight. The National Standards Authority of Ireland has also produced additional guidance to some harmonised European product standards in the form of national annexes or standard recommendations which set out appropriate minimum performance levels for specific intended uses of certain products in Ireland.

The relevant building control authorities are taking appropriate actions under applicable legislation to deal with this issue and the Department, in conjunction with the building control authorities, will continue to monitor the situation. Testing has been carried out in a number of affected developments which has confirmed the presence of deleterious material in the concrete blocks, including pyrite and sulphate.

My Department understands that in each case, the costs of the resolution are being pursued, in the first instance, with the contractors and suppliers. The actions taken thus far by the relevant parties involved suggest the regulatory system is functioning effectively and that an appropriate means of redress is being pursued through those who were responsible for this building failure.

The Minister has stated the system is working well because the culprits are being chased. While he has told me about all the wonderful European legislation and regulations that are place, we must go back to the same chestnut. If pyrite has arrived in blocks, the threat is dangerous to any block that has additional sulphate and that gets moisture. Many blocks do, such as all the blocks under the ground, as do the blocks in the outer leaf even though they are plastered. The reason there is a cavity is because the outer leaf gets damp. There will be huge problems if this is widespread. The point is that were the system working properly, this would not have happened. Quarries are not regulated well enough and while they are regulated for dust and for movement of trucks in and out, there is no real quality regulation of standards. For example, in the case of quarries quarrying 1,000 tonnes and 20,000 tonnes, respectively, of stone per week, is there a stipulation as to how often they are tested? The big elephant in the room again is that while the Minister has stated there is a facility for third-party checks, the major problem is the local authority lacks the facility, the manpower and the money to be a serious third party that checks to ensure everyone is behaving well.

While I will come back to the Deputy, I call the Minister.

That is the major problem across the industry. Moreover, the Minister's new building regulations will flounder unless he reinforces the local authorities with funds.

That was a very long question.

The issues raised by the Deputy have nothing to do with the new building regulations yet, as they have only been in operation since 1 March. However, standards have been in place for these concrete blocks going back to 1987. The problem is with enforcement and I completely agree with the Deputy that the building authority must do more to enforce the regulations that already are in place. The standards in place, which initially commenced in 1987, were revised in 2003. Consequently, I am conscious that there are people who are not observing what already is in regulation. Moreover, there probably is not sufficient enforcement or visits to sites, as the Deputy advocates, by the local authorities. I intend to take up this matter with the local authorities to ensure they actually engage in more enforcement. An opportunity has arisen in recent years, because of the revised manner in which staff operate in local authorities, particularly in planning sections, for them to have more time to carry out more enforcement works regarding these problems of pyrite and sulphate in concrete blocks. However, there are people in all these cases who have not gone into liquidation or receivership. There are people who certainly have decided they do not intend to observe the regulations and they will be pursued.

Deputy Wallace, in a final supplementary question.

It was obvious back in 2007, when the first regulation on checking for pyrite in stone was brought in, that the regulation in question was not as onerous as the British standard. I acknowledge this was changed in February 2013, which is welcome but the major problem is that all along, the Construction Industry Federation and not the State appears to determine what is happening. Public building control must be strengthened if these problems are to be addressed in the future. The Minister mentioned that what I am referring to has nothing to do with the new regulations which came in March but the principle is the same. The Minister's system of assigned certifiers will crack up within the next couple of years. He should not ask me how they will deal with the insurance implications arising from trying to stand over absolutely everything without on-site checks. Does the Minister honestly believe the architect will employ someone to be on site continuously to check that things are done right? As I have stated previously, if a load-bearing beam is being used for which a 32 mm steel bar is specified but where no such bar is on site and if the builder substitutes a 16 mm bar instead, how will the architect know what is in it, even though he will be signing off on it?

The Minister, in a final reply.

Deputy Wallace is referring to a different regulation than the construction products regulation to which his question referred.

That regulation has been in place for years. Deputy Wallace will be very familiar from his previous working life outside the Oireachtas about what can happen if people want to cut corners. We have cut corners in the past on the building side and I inherited some of the problems which I am trying to sort out-----

The bigger the builders, the more corners they cut.

Please, Deputy Wallace.

The Deputy had his chance. In this specific case raised by the Deputy, the report from the Institute of Construction Professionals found that the relevant local authority did carry out a site inspection on 7 April 2014 in respect of the manufacture of the solid 100 mm concrete blocks which it was alleged were contaminated with pyrite and sulfates. Following a site inspection and a visit to the quarry or the block manufacturer concerned, the local authority requested detailed information as required under the legislation to establish the precise nature and extent of the problem, including where the blocks had been supplied, the actions taken or being taken by the supplier to deal with the problem as well as the necessary evidence to demonstrate compliance with the harmonised European standard. We have the procedures in place and they are being followed-----

The procedures are reactive, not proactive.

Please allow the Minister to conclude.

We cannot be on every site but I have asked the local authorities to become more proactive about enforcement of regulations for quarries and the suppliers of these raw materials. We have inherited serious problems because of their inertia in the past and because they did not comply with European standard regulations for blocks and requirements under the construction products regulations.

Leader Programme Funding

Éamon Ó Cuív

Ceist:

65. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the total proposed allocation under the Leader programme 2014-2020; and if he will make a statement on the matter. [25606/14]

My question seeks to find out the amount of money allocated for the Leader programme for the period 2014 to 2020. It is a very straightforward question and I am sure the Minister will have a very straightforward answer.

The overall funding package for the Leader elements of the Rural Development Programme 2014-2020 will be €250 million. While the EU regulations stipulate that a minimum of 5% of the rural development programme is allocated to Leader, Ireland has decided to increase its proportion to 7%. This confirms the Government’s firm commitment to the economic development of rural areas. The €250 million incorporates €15 million for two agrifood measures which will be delivered via Leader. The draft rural development programme will be submitted by the Department of Agriculture, Food and Marine, which is the managing authority for the programme, to the European Commission for consideration and approval in the coming weeks. Following this, my Department will conduct a two-stage process to select local development strategies providing the opportunity to develop partnerships with full and comprehensive consultation, thus maintaining the integrity of a community-led local development approach.

My Department will issue an open call inviting all entities that meet the eligibility criteria to be considered as local action groups to express an interest in being selected to develop local development strategies for the 2014 to 2020 programme. The eligibility criteria will be drawn up in such a way as to ensure that the best local action groups possible are selected to develop strategies, including conformity with EU requirements in terms of local action group make-up, capacity to undertake the work and financial capacity to deliver the programme. It is intended to select a single strategy in each area and therefore in cases where more than one strategy is submitted, the groups involved will be asked to come together in partnership to jointly prepare and agree a single strategy in order to ensure that the most comprehensive and coherent strategies come forward for consideration and approval by my Department. I expect that the programme will be operational in early 2015.

Based on the Minister's reply, I ask him to confirm that it would appear that the allocation for this new Leader programme will be 33% less than for the current Leader programme. I ask him to confirm that €100 million remains to be spent on the existing Leader programme and that less than €30 million has been spent this year on that programme. Is there a danger of an underspend occurring under the Leader programme for 2007 to 2013? What steps is he taking to ensure that this does not happen, particularly as I understand that the contracts for some of the delivery companies finish at the end of this year?

The current value of the axis 3 and 4 elements of the Rural Development Programme 2007-2013 is €370 million and it will be €250 million for the next programme. In addition, €5 million has been provided for the axis 1 agrifood measure.

To date, €205.7 million has been spent on projects, €12 million has been spent on animation and €55.2 million has been spent on administration, giving a total of €273 million. A sum of €97 million remains to be allocated. The overall expenditure to date in 2014 is €29.1 million, which I expect to increase steadily in the coming months.

The total amount of funding available under the Leader programme is €375 million, which leaves more than €100 million that has not been spent. At the rate at which the funds are being spent, there appears to be a significant risk that the allocation will not be spent in full. Will the Minister outline the steps he proposes to take to ensure it is spent in full? Under the arrangements the Minister introduced for the Leader programme 2014 to 2020, it seems possible that in one area one company could operate the rural social scheme and Tús, a second company could deliver the child care assistance programme, CCAP, and a third company would deliver the Leader programme. Could one have a scenario in which three companies with three separate headquarters deliver three different programmes in one area? The delivery of programmes was rationalised under previous Governments.

I assure the Deputy that the circumstances he describes will not arise. A single strategy will apply in each area and where more than one strategy is submitted, the groups involved will be asked to come together in partnership to agree and prepare jointly a single strategy to ensure the programmes can be delivered in the most cost-effective manner possible. In the event that more than one strategy is submitted, it will be a matter for the evaluation committee to make a determination and recommendation to the Department.

On the steps I will take to ensure money is spent, as the Deputy is aware, in 2013 I asked all the local action groups to indicate which projects would proceed and which would not and to reallocate funding. I am considering the possibility of making a similar request in 2014 to ensure all the money in the programme is spent this year. I expect all the local development companies to indicate to me truthfully which projects will proceed and which will not.

Social and Affordable Housing Provision

Mick Wallace

Ceist:

66. Deputy Mick Wallace asked the Minister for the Environment, Community and Local Government if he will outline the projected social housing construction programme; the number of new builds that are expected to be delivered under the programme by the end of 2016; the number of new builds expected to be delivered through the Part V arrangement; and if he will make a statement on the matter. [25603/14]

My question seeks to ascertain how many social housing units will be built by the end of 2016 and how many new builds will be delivered through the Part V arrangements. Part V has not been operating properly and the construction industry is lobbying hard to have it eliminated as a means of incentivising builders to restart house building. Is there any truth in the rumour that the Government is considering the possibility of reducing the Part V requirement to 10%?

The number and method of delivery of social housing units in future years will be determined in the course of the annual Estimates process. The social housing strategy, which is to be published in the third quarter of 2014, will inform the upcoming Estimates discussions. The financial parameters within which we continue to operate will not facilitate a return to large-scale capital funded construction programmes. However, earlier this year, I signalled a return to modest levels of new social housing construction, with an announcement of 1,000 new housing starts over the 2014 to 2015 period. The Government also recognises the importance of a wider response to social housing support needs through a variety of mechanisms.

In the 2014 Estimates, funding for housing, at more than €587 million, was effectively maintained at 2013 levels. This includes a €50 million capital stimulus to support construction and related programmes, primarily in the housing area, including €30 million to recommence a public housing building programme. As part of the Government’s additional €200 million stimulus package for the construction sector, announced in May 2014, a further €50 million is also being provided for social housing delivery. Through this overall level of funding, I expect the final output across all social housing programmes for 2014 to be in the region of 6,000 new housing units.

In March 2014, I announced the approval of 56 social housing construction projects, with an overall value of some €68 million, under the local authority housing construction programme for 2014-2015. This will deliver 449 new units of accommodation for people on the housing waiting list.

Some €20 million of the May 2014 stimulus announcement will be made available for further new local authority projects, details of which I intend to announce shortly.

Earlier this year I also announced details of a new measure with funding of €15 million which will be invested in bringing 952 vacant and boarded-up local authority houses back into productive use. Some €20 million of the additional May 2014 stimulus will be used to fund the refurbishment of an additional 1,000 vacant units.

I also announced details of the allocations to local authorities under my Department's capital assistance scheme. I realise my time is running out and I want to get to Part V.

Part V of the Planning and Development Act 2000 has contributed to increased social integration and more sustainable mixed tenure communities. The review of Part V, which deals with affordable housing and ensuring there is a social housing gain from private development, will be completed shortly. Any legislative changes required on foot of the review will be incorporated into the general scheme of a planning Bill, which is currently in preparation. As the social housing gain under Part V is contingent on the extent of private development taking place, it is not possible at this time to estimate the number of units that will be delivered under Part V.

The main argument coming from the construction sector is that profit margins on houses are too low for the banks to consider lending, and Part V eats further into these profits. I believe that anyone who would buy a site today and build houses on it would still make some money on it. If the banks will not lend, it tells us there is a problem with the banks. The taxpayer bailed the banks out, it kept them on their feet and now they will not lend to builders unless the sector becomes more attractive and there is no risk whatever involved. The same bankers are prepared to go on the financial markets and gamble with funding they garnered from the taxpayer but they are not prepared to lend to build houses. Builders do not build houses to create homes for people. They build them to make money. However, there are other ways. Doing away with Part V would be a terrible mistake.

Part V is not only about the provision of social housing. It is primarily about social integration and it functions to tackle the creation of ghettos. It was ridiculous that, between 2002 and 2011, only 5,000 social units and 10,000 affordable units were provided by Part V.

I note that in Clancy Barracks, Kennedy Wilson, an international hedge fund, is looking to build a couple of hundred units. It has applied for permission and has signalled it thinks the site is unsuitable for social units. I am sure it thinks so, but the Minister of State should not let it away with it.

Deputy Wallace is correct that we want to put pressure on the banks and ensure zoned land is built on. All these issues are addressed in Construction 2020. I acknowledge that final decisions have not been made on some elements, including Part V, but I assure Deputy Wallace that I have no intention of caving in to any lobby on Part V.

We intend to maintain a Part V. We are looking at whether its format needs to be changed because, as Deputy Wallace correctly stated, it did not deliver. In fact, it delivered a small number of units in comparison with what it was meant to deliver, despite all the construction that was going on during the boom. It needs to be reformed.

I want to protect the 10% social housing element of it, but we have not yet finalised our decisions on it. The other 10% relates to affordable housing. There is a general issue of affordability that needs to be addressed and we need to have a conversation around what we mean by affordability. There are issues to be decided in that respect.

Certainly, my commitment is that we will get units from Part V. In the past, unfortunately, while money or land was transferred, it did not result in the units for social housing.

Will the Minister of State give a commitment today that the Government will insist on a minimum of 10% social housing on every site which is given planning permission in the future? That is a must. Apart from providing social housing, it tackles the considerable social problems in the city.

If there is a problem and banks will not lend to builders, is there not more of an argument than ever before for the Government to bring in the strategic investment bank it promised in the programme for Government where it can decide what to lend and to whom to lend?

We cannot trust the banks to do it and cannot depend on them to supply us with the necessary funding to carry out infrastructural projects. We have saved banks that were useless and broke, and now they will not even function in the interests of the State and the people. If we cannot tell them what to do, we need our own strategic investment bank.

A huge problem remains. I have just read the Kenny report and it is complicated. It is difficult to come up with a system to control the price of development land but it is very much worth doing.

Thank you, Deputy. I must call the Minister of State now.

We must get a measure on it because as long as development land can be sold for telephone numbers we will always have a problem with housing in Ireland.

The Government has decided to establish the strategic investment bank, so that is going ahead.

The Government has not yet made a decision as to what exactly the revised Part V will be. I can assure the Deputy, however, that I am strongly committed to ensuring that the social housing element of that is maintained and that it will deliver units.

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