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Dáil Éireann díospóireacht -
Wednesday, 4 Mar 2015

Vol. 870 No. 2

Priority Questions

Social and Affordable Housing Provision

Barry Cowen

Ceist:

1. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the progress made in the delivery of social housing units under the social housing strategy 2020; if he expects the targets for the construction and refurbishment of new units in each local authority area to be met this year; and if he will make a statement on the matter. [9320/15]

Yesterday evening we discussed the Estimates for the Department's spend, 52% of which is on housing. It would be no harm to discuss the issue and outline the means by which the Minister expects to meet the demands placed on the Department by virtue of the announcements made in budget 2015, Construction 2020 and the social housing strategy 2020. We are led to believe the housing crisis which has been allowed to proceed unabated in the past few years can be addressed, despite the fact that it has been exacerbated by the bank veto which continues in the legislation dealing with bank mortgages and which has resulted in 100,000 people being on waiting lists. The spend in 2008, 2009 and 2010 was 3.5 times the budget for this year and the next two years. Then 12,500 units were built, but the Minister says he can still achieve the target for this year of 7,500 units, not including the 8,400 provided for through housing assistance payments and transfers from the RAS. In going through the figures it strikes me as unlikely that we can increase supply. That is the big issue. Demand far outweighs supply, which is causing rents to reach exorbitant rates. With no major house building programme in the Department's proposals, there is a great danger the crisis will continue unabated. Will the Minister inform the House how he hopes to meet demand?

Social housing is a key priority for the Government, as evidenced by the additional €2.2 billion in funding announced for social housing in budget 2015 and the publication of the social housing strategy 2020 in November 2014. The strategy builds on the provisions contained in budget 2015 and sets out clear, measurable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list. Importantly, it restores the State to a central role in the provision of social housing. The total targeted provision of over 110,000 social housing units through the delivery of 35,000 new social housing units and meeting the housing needs of some 75,000 households through the housing assistance payment and rental accommodation scheme will address the needs of the 90,000 households on the housing waiting list in full, with flexibility to meet potential future demand. In committing to provide these 35,000 new social housing units, at a projected cost of €3.8 billion, the strategy marks a fresh start for social housing in Ireland.

Under the relevant actions of the strategy, national targets for the delivery of social housing on a local authority by local authority basis are to be agreed for each year in quarter one 2015. This process is well under way and all local authorities have submitted delivery proposals, across all delivery mechanisms, for the years 2015 to 2017. These are being examined in my Department.

Total housing provision in 2015 will result in an investment of almost €800 million across a range of housing programmes. I expect some 7,400 new social housing units to be provided this year. In addition, a further 8,400 households will be assisted through the housing assistance payment. The social housing strategy sets out an ambitious agenda for delivery and it is one that all of the key stakeholders and I are determined to meet.

I thank the Minister for his reply. In drilling down into the real facts contained within the figures we see that 2,000 leased units under the RAS can never become long-term homes for the occupants. Some 3,000 leased units are provided by the social housing agencies for which we do not have specific delivery plans on the table. They are leased units and the legislation does not allow for their occupants to buy them and call them home. There are just 1,400 units to be built or acquired by local authorities. Local authorities are being squeezed out of the process, but they are at the coal face as they have up to 100,000 people seeking to be housed. They are the ones, the doors of which will be knocked on when the courts repossess the homes of those who have no option but to accept the bank veto rather than adhering to the intermediaries' solutions under the existing legislation. Demand outweighs supply and the Minister is not addressing the severe supply issue. All experts and stakeholders have consistently said the only way to address the issue is to embark on a building programme. As Deputy Brian Stanley said at a committee meeting last night, in the 1930s, 8,000 houses were built per annum by local authorities and the State. That is the sort of measure that is absolutely necessary to address what is a calamitous crisis.

I reject completely what the Deputy is saying. This is the largest social housing fund in the history of the State. The Deputy can check the statistics and will find that that is a fact. Yesterday we discussed at length the programmes sent to local authorities. All local authorities, including the Deputy's, have come back to me with their plans under the various schemes and the Deputy knows the figures because I have published them on a number of occasions. They give a breakdown of how we are going to provide the units provided for. Depending on what stage each local authority is at, there will be a mixture of building and purchasing because in some parts of the country purchasing units is probably financially preferable to building. This will not hit supply because the properties in question are actually available. We are also delivering hugely in respect of voids, with well over 2,000 last year and a further 1,000 projected for this year. This is an area on which I have concentrated. In the next few years we will be delivering hugely in terms of supply to ensure more people will have homes which they totally deserve. As the Deputy knows, 7,536 units will be delivered, while 8,389 additional HAP places will be provided.

As the Minister said last night, many of the HAP payments represent transfers from the RAS.

We could not elaborate on the percentages last night but all of them could be transfers from existing tenants under RAS schemes. Ultimately, the Minister's ambition will be measured by the record of success, when the year concludes, on the deliverability of what is proposed. I do not agree that it is the biggest house building programme in the history of the State. I will check the facts but I am sure I am on the right side of those facts. Local authorities, in conjunction and in co-operation with the Minister's Department, should be charged with the responsibility of addressing this issue. They should be providing and building new units. This is the only way to meet the crisis. Fr. McVerry stated this recently and he is not the only expert who has stated this consistently. The only way to address the supply issue, because of the demand, is to increase the supply. It will not suffice to increase the supply of leased units. There is a crisis in that sector also. Rents would not be at their current levels if this was not the case. The Minister is looking at the existing market to fulfil a need which needs to be resolved from the outside and by that I mean constructing units. Unfortunately, the record will show that there is only provision for 1,400 units and we do not know how many of them will be built.

The Deputy is over time.

My interpretation of this will be adjudicated to be correct.

I am happy to stand up to scrutiny as regards the allocations we have given out. I remind the Deputy that this scenario exists because of his party's policies. We have the legacy of Part V. Over the past years this provision did not exist because there was no development. This structure was one his party put in place.

The ratio of transfers from rent supplements to new applicants in the housing assistance payments, HAP, scheme is 50-50. We are happy with the programme of work we have outlined up to 2020. Delivering on 110,000 units is a phenomenal target. There are 90,000 people on the housing waiting list. Many of these people are in key urban areas, which we will be targeting in the coming years.

Property Tax

Brian Stanley

Ceist:

2. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government the amount collected through local property tax in 2014; the amount that was placed in the local government fund under his Department; and the amount provided to local authorities, or to other public bodies and agencies. [9326/15]

My question relates to the amount collected in local property tax, the amount of it which went into the local government fund, where it is supposed to be going, and the amount which was provided to local authorities. This is a key issue for people. People were promised many times in this House and elsewhere by senior Ministers and Ministers of State that the money would be used to provide for footpaths, public lighting, libraries, and parks etc. The Minister might outline the figures for me.

The Minister for Finance, in the Exchequer Statement for 2014, reported that €491 million was collected in local property tax in 2014. Some €483.5 million from the local property tax was paid into the local government fund during 2014. A further €7.7 million was paid into the fund in January 2015. This related to the local property tax collected in the last week of 2014. The annual accounts of the local government fund for 2014 are in the process of being finalised and the Comptroller and Auditor General will commence the audit of these accounts this month. The accounts are prepared on an accruals basis and expenses are, therefore, matched with the related revenues and are reported when expenses occur and not when the cash is paid.

Estimated 2014 figures show the following payments from the local government fund for 2014: general purpose payments of €281 million; recoupment of local authority water services capital loans of €47. 4 million; payments in respect of group water schemes of €21. 7 million; local government innovation and reform payments of €6.6 million; payment to the Department of Transport, Tourism and Sport of €372.4 million; payment to the Exchequer of €520 million; subvention to Irish Water of €439.1 million; and miscellaneous payments of just more than €1.6 million.

I thank the Minister for his reply. The figures he has given outline the problem with the local property tax. It is not what people thought it was and what it was for. The Minister has outlined that €281 million was disbursed from the local government fund in respect of general purpose payments while a further €359 million was also disbursed from the fund. As we all know, the fund is made up of motor tax, direct Exchequer funding from other sources and the local property tax. In 2014, the fund totalled €1.626 billion. For that year some €281 million was disbursed from the fund in respect of general purpose payments while miscellaneous provisions amounting to €47 million, €21 million and another €6 million, totalling €74 million, were also disbursed from the fund. This means that approximately €350 million was disbursed from the fund. However, this shows a huge discrepancy, not just in respect of the local property tax money, which shows there is €100 million which did not go into the fund. It also shows that more than €1 billion from the fund was disbursed in other ways.

This is the issue. We were told in the mid-1990s that the local government fund would be made up of the road tax. The road tax was increased and we now pay higher road tax than our neighbouring states. It is much higher here than in the North, which the Government often references. We do not have any control over this as the tax in the North is set by the British Government.

If the Minister has any influence on this and other taxation measures, I would like to hear from him on it. We know the Government supported the Tory cuts last year because it wanted us to implement them in the North.

Sinn Féin keeps implementing them.

Then when we did not implement them-----

I have to smile.

-----the Government tried to have it both ways. Instead of coming back and saying-----

The Minister to reply and then I will come back to Deputy Stanley.

Sinn Féin has protesters on its back.

That will be interesting.

We fought a hard bargain which was criticised. Do the Members on the other side of the House remember what they said last year?

We will wait and see.

There is no intention to misrepresent the payments of the local government fund. The fund has made a payment back to the Exchequer for a number of years. The details are published in the Estimates each year. Local property tax for 2014 is €491 million. As I have previously stated, it is unaudited and the process of auditing will now proceed. The estimated figure for 2015 is €440 million.

I need to nail a myth here. Every cent of the local property tax goes to local authorities. Some 80% of it is retained locally. The remaining 20% is used in an equalisation scheme to ensure that local authorities do not go below the level of the previous year. I am sure the Deputy, coming from one of the smaller counties, in the midlands, will respect the fact that it is necessary to have such an equalisation fund and to manage the property tax in this way to ensure counties, with their various different issues, are dealt with in a fair way.

A sum of €491 million came in through the local property tax and €282 million made its way to the general purpose payment. Some €359 million made its way from the overall local government fund, which in the current year is more than €1.839 billion. This shows that a large part of it is not being disbursed. There is a further €520 million payment in the current year made to the general Exchequer. This leaves a lot of room for manoeuvre. Some €93 million is provided for under the miscellaneous heading. The provision for direct subvention to Irish Water, the bit that is actually named, is €439 million. This shows that people are not getting what they were told they would get. The Minister and Commissioner Phil Hogan told us in this Chamber that Irish Water was going to be a stand-alone commercial semi-State company. For how long will we shore it up? Some €59 million in rates is being carried. The Government speaks about keeping money off the balance sheet. It moved €500 million in one section of the Bill enacted just before Christmas back onto the balance sheet from Irish Water. This is €500 million that is owed to the housing finance agencies.

There are other Deputies I need to call, Deputy Stanley.

This clearly shows that there is no clear accountability. The funding is not directly linked. A smoke and mirrors job is going on here with funding being moved around and not ending up where it was intended.

The Deputy makes me laugh at times. His party would know a lot about smoke and mirrors and funds.

Our funds are totally transparent.

We are satisfied that there is transparency here in regard to 2014.

The local property tax, LPT, was paid into the local government fund along with motor tax receipts, which was always done. A total of €281 million went directly to local authorities; €260 million was paid to the Department of Transport, Tourism and Sport for essential non-national roads; €12.5 million went to the Department of Transport, Tourism and Sport for the vehicle and computer services division for the operation of that essential service; and €439 million was paid to Irish Water, which is consistent with the way in which it was done previously. A total of €520 million was paid to the Exchequer.

Let me restate that 100% of all local property tax will be retained by local authorities in 2015. That is an absolute fact. If Deputy Stanley disagrees with the manner in which it is being done he can make alternative proposals, but I would like to see him stand over a situation where he disagrees with an equalisation fund that helps weaker local authorities and weaker areas of the country to maintain what they had in the previous year.

Water Charges Administration

Paul Murphy

Ceist:

3. Deputy Paul Murphy asked the Minister for the Environment, Community and Local Government the contingencies his Department is taking for mass non-payment of water charges; the plans in place to increase funding from the State to Irish Water; if an assessment has been carried out on the impact this would have on the EUROSTAT market test; and if he will make a statement on the matter. [9119/15]

Could I ask the Minister what contingencies the Department is taking for the possibility of mass non-payment of water charges; what plans are in place to increase funding from the State to Irish Water in that circumstance; and if an assessment has been carried out on the impact of such an occurrence on the EUROSTAT market test?

As Deputy Murphy is well aware, in November 2014 I announced a package of measures to ensure that domestic water charges are certain, affordable and clear. In relation to the payment of charges, a range of easy pay options will be in place, including direct debits, electronic funds transfer, payment by cash at any retail outlet with a paypoint or payzone sign or, importantly, a post office where a bill can be paid in full or part payments of a minimum of €5, which is a small amount, can be made.

Section 4 of the Water Services Act 2014 provides that where a customer has not paid any water charges within a period of 12 months after the issuing of the first demand and has not entered into, or is not complying with, a payment plan with Irish Water, a late payment fee shall be charged by Irish Water, for each year the charges remain unpaid.

Further legislation will be brought forward by the Government which will contain a range of measures to ensure that Irish Water will be in a position to recover charges from customers who have not paid bills. In addition, a range of measures will be pursued by Irish Water in order to maximise payment of charges, including robust revenue collections processes. The Government remains confident that Irish Water will pass the market corporation test. Ultimately, as the Deputy is well aware, that will be a matter for EUROSTAT, which is an independent entity.

Was the answer "No", that the Minister has not considered the possibility that large numbers of people will refuse to pay and that will result in Irish Water failing the market corporation test and a major crisis for Irish Water and the strategy of off-balance sheet funding is falling apart? The Minister can provide all the options he wants for people to pay. He can make it as simple as he wants for people to pay but a large proportion of people will refuse to pay because they do not agree with the water charges and they see them for what they are, namely, another unjust attack on working class people, and they understand that mass non-payment is the central tactic that will sink Irish Water and defeat the water charges.

The rational decision for people to make is that there are no penalties for non-payment until July 2016 and then it will be €30 or €60. It makes sense for people to say they will join the boycott because they know that no penalties will apply until after the next general election. They can be safe in the knowledge that if 30%, 40% or 50% of people refuse to pay, in the context of a general election that would be the dominant issue and any Government that comes in would be under massive pressure to withdraw the penalties but also to withdraw the charges. Has the Minister not carried out an analysis? Will Irish Water fail the test if 30%, 40% or 50% of people do not pay?

We are very confident that the Irish people will work with us on the plan that has been announced. I was pretty disappointed that I did not see Deputy Paul Murphy in Killarney last weekend. Perhaps he was outside but we could not see him among the 400 to 500 people who were there. The reality is that people are signing up to Irish Water. We are very happy with the volume of people signing up and additional people are signing up all the time.

I am amazed at Deputy Paul Murphy's stance. He believes in the right to water but I challenge him on the right to water for future generations, for my children and everyone else's children, who are and will be in this country in the coming 100 years and how they will get water. The Deputy also has a very mixed view of who should pay for water. I will put a question to Deputy Murphy. Has he met with the National Federation of Group Water Schemes of Ireland which has been providing water for the past 60 to 70 years? Has the Deputy been to Lissycasey in Clare where 1,100 houses are provided with water? Has he been to Callow in Mayo where there are 1,200 houses in a group water scheme, or to the Erne Valley in Cavan or Claremorris in Kerry where 1,250 houses are in a group water scheme? They have been paying for water. Why is Deputy Murphy not protesting outside their homes and their schemes on the basis that they have been paying for water for many years or does he need me to give him directions past the Red Cow?

Thanks a lot. Perhaps I should remind the Minister that his party stood in the previous general election on a platform of opposition to water charges. Any criticisms he can make about the need to have water charges will rebound on him and his previous position. Our position is clear: we are for the right of everybody to have free and quality water, I repeat, everybody in the State. We do not go in for the urban-rural divide the Government would like us to.

Perhaps the Labour Party conference went to the Minister, Deputy Kelly's, head. I understand there was a motion from the Minister's branch celebrating his role as Minister for the Environment, Community and Local Government. The Minister spoke about this being one of the best Governments ever. He is completely disconnected from the reality that exists with those couple of hundred people in a room in Killarney all slapping each other on the back. It is going to be awakened: the party will be wiped out, partly as a result of the water charges, and the Minister, Deputy Kelly's, future prospects of being a leader of the Labour Party will clearly be challenged by the fact that he is unlikely to get re-elected as part of the wipe-out of Labour.

Deputy Murphy should tell that to the people of Tipperary.

To return to the question-----

Deputy Murphy should please ask a question.

The opinion polls indicate that four in ten intend to pay, three in ten intend not to pay and the others say they do not know and they will be convinced by a campaign that advocates the way to defeat the water charges is through non-payment. Has the Minister seriously not considered the possibility that significant numbers will refuse to pay and what kind of crisis that causes for Irish Water?

The Minister is to conclude on this question.

Deputy Murphy can try to lecture the people of Tipperary but to be honest, I am sure they will not listen to him. I like the fact that the Deputy is predicting the electoral demise of many different groups, including my own party, 14 months from an election. That shows a level of arrogance that I am sure the people will judge. We are quite satisfied with the plans that are in place. I repeat again that we are quite happy with the number of people that have signed up. There is well over 66% now. It is not a rural-urban divide. It is a simple fact. Why does Deputy Murphy not oppose people in this country paying for water in group schemes? I challenge Deputy Murphy to respond to the question.

When did the Deputy meet the representatives of group schemes to articulate his opposition?

We have met them.

On what date? When? What did they say to Deputy Murphy? Did he listen to them? He has not even met them. The facts are that these people know the value of water. The facts are that these people knew they had to come together to deliver water. Can Deputy Murphy not understand that water is a resource that must be paid for into the future? We need a different funding model or else we simply will not have water in the area Deputy Murphy represents.

Irish Water Remit

Barry Cowen

Ceist:

4. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government if all outstanding assets and liabilities relating to water infrastructure have been transferred from the local authority balance sheets to Irish Water, to date; if he will provide details on the way the reported central Government grant, paid to local authorities to cover outstanding liabilities relating to water infrastructure, has been allocated; and if he will make a statement on the matter. [9321/15]

My question relates to transfer of assets and liabilities from local authorities to Irish Water. The legislation that governs the transfer was passed in December 2013 for the transfer as of 1 January 2014. Could the Minister confirm to the House that all assets and liabilities were transferred on that date? If not, why not, and what liability has since been incurred by the State as a result of non-compliance with its own legislation?

On 14 January 2015, I signed an order under section 12 of the Water Services (No. 2) Act 2013. This order provided for the transfer to Irish Water of all underground water services assets previously vested in any local authority across the country. Further orders for the transfer of assets are currently being drawn up and I expect shortly to sign an order for the transfer of approximately 250 treatment plants from local authorities to Irish Water.

Considerable work is involved in preparing supporting material for the transfer of over-ground assets from local authorities to ensure that the order reflects the precise nature and, in particular, the boundaries of such assets. The remaining orders required will be completed as soon as possible, subject to taking the time necessary to ensure that the assets are accurately defined. In that regard, I expect the process on the transfer of over-ground assets to be largely concluded by the end of June 2015.

Work is under way between Irish Water and the local authorities on the identification and quantification of water-related financial liabilities. Final agreement on the liability to transfer to Irish Water, including financial assets, liabilities and debtors, will be by way of balancing statements agreed between Irish Water and local authorities. Again, this is a very significant exercise which it is important is completed accurately. The work involved is now at an advanced stage and I anticipate that it will be completed in the near future.

In 2014, some €47 million was provided to local authorities for the purpose of servicing water-related loans, pending the agreement of an enduring set of arrangements for dealing with such loans. Discussions in this regard are ongoing between my Department, the Department of Finance and other stakeholders, including the local authorities. These discussions will be finalised as soon as possible.

This again proves the point we have made from the outset, namely, this entire concept and its delivery was rushed, and needlessly rushed when one considers that no extra funding has been spent on the provision of water services during the four years of the lifetime of this Government. We were told that all assets and liabilities would be transferred. They have not been transferred because there was not adequate time or preparation put into that process. How many assets remain outstanding, and what value are those assets? What liabilities are associated with them? Are they specific assets that were constructed under public private partnerships? The Minister said that €47 million was provided last year to local authorities, and that is on top of the €500 million paid to the Housing Finance Agency. In what form was that €47 million provided? Was it part of the local government fund because local authorities were given to believe that they would have no liabilities or accruals in regard to their bills associated with Irish Water and with the assets? Is the Central Statistics Office aware of this? Our party spokesperson on public service, Deputy Fleming, has asked the CSO if it has been informed, for example, that all assets and liabilities have been transferred. Has it been informed or is it aware that outstanding liabilities remain which local authorities are being forced to pay?

Thank you, Deputy. I will come back to you.

I am nervous that the local government fund is not what it says on the tin either because it may be the case now that the €47 million provided last year was used to pay these ongoing liabilities.

It was never intended that the assets would transfer on 1 January 2014. It was planned that transfers would take place on a phased basis. As work progressed on the identification and the various assets and liabilities became clear, there was a need to ensure that loans did not automatically transfer with the assets. As the Deputy is aware, because we discussed it in this House, legislation to underpin this was passed at the end of 2014 to ensure that assets could transfer this year. The transfer of outstanding assets will take place over the coming months and the process is expected to be largely concluded by June of this year. A licence arrangement applies under the service level agreements between Irish Water and the local authorities and thus the fact that assets have not been fully legally transferred has not acted as an impediment to Irish Water from an operational or capital investment plan point of view.

The Deputy asked whether the local authorities incurred additional expenditure as a result of this issue of timing. The straight answer is "No", they did not.

The Minister said in his initial response that the €47 million was provided to local authorities to meet the liabilities associated with it.

Was it from the Central Government Fund? How much will be provided this year, and will it be from the Central Government Fund because that is on balance sheet? There is great talk about moving the expenses associated with water services off-balance sheet. I might add that the €300 million Irish Water has borrowed so far off-balance sheet is two and a half times the rate it would cost to borrow it on-balance sheet. The public need to know that it will not be the Government that will be paying it. Ultimately, it will be the taxpayers. They are already paying more, despite the fact that they have got less with regard to the provision and maintenance of services. The records for the past four years will show, and the Minister can check them, that less has been spent in the area of water services in terms of what is under the ground by comparison to what went before. In total, €1.5 billion has been spent on the preparation for a mechanism that is being postponed for two years in order for the costs associated with off-balance sheet to be hidden. When the rates are so high the only way it will be compensated is when the charges increase.

On the point I made-----

A question please, Deputy.

I will confine it to this. Last year the Minister said €47 million was provided to local authorities, and he said it again in his initial response, to meet the liabilities associated with the assets still on-balance sheet.

Can the Minister tell me how much is being provided this year? Clearly both are on-balance sheet. Were they contained in the local government fund provided to local authorities?

The local government fund is set aside, and I am happy that the fund will service the demands of the local authorities as set out in the Estimates we dealt with yesterday. Local authorities will not incur any expenditure on water service assets.

In regard to the €47 million from last year, we will provide the funding for what is required in 2015 but as the Deputy is aware, assets are in the process of being transferred so loans will transfer as well. There are no hidden costs to the taxpayer.

Regarding the Deputy's commentary on EUROSTAT and the CSO, they are both independent bodies. They have to do their own analysis based on the figures presented to them following auditing. I expect results from a EUROSTAT perspective in regard to its work some time next month.

Private Rented Accommodation Costs

Paul Murphy

Ceist:

5. Deputy Paul Murphy asked the Minister for the Environment, Community and Local Government if he will report on his meeting with the Irish Property Owners Association; in view of rising rents and the homelessness crisis, his plans on addressing rising rents; his further plans to introduce rent controls; and the other reforms with regard to the rights of tenants, and the tax treatment of rental income, that are being considered. [9120/15]

I ask the Minister to report on his reported meeting with the Irish Property Owners Association and, in view of rising rents and the homeless crisis, the plans to address the rent crisis affecting people. I understand reference was made at the Labour Party conference to something approaching rent controls but referred to as rent certainty. The Minister might provide more detail on that. Does he have any plans to increase the rights of tenants because the absence of a legal framework providing security of tenure for tenants is a major factor? There has also been some discussion on the tax treatment of rental income.

The meeting which the Minister, Deputy Kelly, held with the Irish Property Owners Association was part of the consultations my Department is having with a range of stakeholders in regard to the development of legislative proposals. In that context, the association raised certain issues of interest to it, including the taxation treatment of landlords and the Housing (Standards for Rented Houses) Regulations.

Fundamentally, the main cause of rising rents is a lack of supply in the market. The implementation of the range of actions under the Government’s Construction 2020 strategy will support increased housing supply. In addition, the Social Housing Strategy 2020 published in November of last year sets out clear, measurable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list.

The report Rent Stability in the Private Rented Sector, commissioned by the Private Residential Tenancies Board, PRTB, and published in autumn of last year, includes an examination of rent regulation regimes in other countries and puts forward a series of policy options on rent stability for consideration. These include options in regard to rent regulation as well as measures aimed at increasing awareness of tenant rights under the existing legislation.

The Government is monitoring the rental market closely and we are considering a number of policy options in regard to achieving greater rent certainty. The options put forward in the Rent Stability in the Private Rented Sector report I referred to form part of these considerations. The Government's overriding objective in regard to rents is to achieve stability and sustainability in the market for the benefit of tenants, landlords and society as a whole.

The Government underestimates the seriousness of this problem. We cannot just decide to wait and build houses at the slow rate referred to in the Government's housing strategy. According to the CSO, almost one third of people rent accommodation.

They are faced with rent increases of over 10% in Dublin in the past year. A recent report by the National Association of Building Co-operatives, NABCO, states that 23% of all tenants are afraid of losing their home. That is reflected in the calls that I get to my office, as I am sure other Members do, of tenants being bullied by landlords pushing them out in order to increase rents for others. The figures are worst for those on low incomes where 45% are afraid of losing their home. One third of tenants do not know whether they have a formal lease. Only 7% identify themselves as having a Part 4 tenancy.

Action is needed on this now. Action could be taken and central to that is rent controls. We do not need temporary rent controls in certain areas. We need rent controls, as exist in many other European and developed countries, to limit the profiteering that is going on at the expense of generally low-paid workers.

I assure the Deputy that the Government certainly does not underestimate the problem. We recognise that there is pent-up demand and we are doing what we can to address that. To do that, we need to adopt strategies. As I already outlined, the "Social Housing Strategy 2020" and the "Construction 2020" strategy address in a multifaceted way the delivery of more units for those who need them and to meet the demand. Unless we increase the supply of houses, rent will always be a problem in this country. The Government has already announced how it will invest heavily in the delivery of extra units. We are prioritising and front-loading the refurbishment of voids in the main urban centres to relieve some of the pressure and a number of housing projects and allocations will be announced shortly to further enhance that.

The PRTB refers to rent control, about which Deputy Paul Murphy speaks. Research shows that crude rent caps lead to a reduction in the supply of rental units. We need to be careful here that whatever interventions the Government makes do not reduce what we all know is needed, that is, an increased supply in this area.

In the real world, rent controls and rent caps do not lead to a decrease in supply. That exists in the world of neoliberal economists who simply look at supply and demand charts, but that is not how it happens. Landlords act as landlords as long as they can make an amount of money which can be made, including with rent controls.

Rising rents are a key factor in the homelessness crisis. According to Mr. Mike Allen, 52 persons were made homeless in January as a result of rising rents. Threshold has repeatedly identified rising rents as the key factor in driving homelessness.

On the question of an increase in supply, I agree that we need an increase in supply of housing in the housing market. What the Minister stated repeatedly earlier, that this is the biggest house building programme in the State, is not true when measured by houses, which is surely the only way one can measure it. In the strategy for 35,000 additional social units, 11,000 plus units are leased, that is, rented from private landlords, and almost 2,500 are refurbished voids, which leaves approximately 22,500 which will be built or bought, a rate of under 4,000 units per year. That is not the biggest house building programme in the State. It is a small housing building programme when compared to those in the 1970s and 1980s, when there were 6,000, 7,000 or 8,000 homes built in a year, or at earlier stages. That is not enough, neither is the failure to move on rent controls to deal with these crises.

As I stated at the outset, the strategy the Government is currently pursuing is showing an increase in the supply of units. We expect that to increase substantially over the coming year.

This is a multifaceted approach. Deputy Paul Murphy is correct in stating that we need to protect tenants when they are in their homes. That is why the PRTB and Threshold now have a protocol that will assist tenants where they are under threat of having to leave their home. That is working around the country.

Also, community welfare officers have discretion, through the Department of Social Protection, to assist tenants who are under pressure with regards to their rent on a case-by-case basis. Also, the PRTB is currently undertaking a national awareness campaign with regard to tenants' rights because often tenants are leaving homes unnecessarily due to pressure. It behoves all of us as public representatives to ensure that tenants are fully aware of their rights and to assure them that they are protected as far as possible under current legislation.

I repeat the Government is considering all options. We are looking at measures to introduce rent certainty but at the end of the day the housing market must be normalised so that we create stability and, more important, sustainability within the market so that tenants can remain in their homes at affordable rates.

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