Topical Issue Debate

Social and Affordable Housing

Deputy Michael D'Arcy

The issue I raise is an area that seems to have been left behind in the Rebuilding Ireland plan. I have gone through the plan and the affordable sector appears to have been ignored. I believe it is an important area. The problem with the rental sector is quite simple: there are too many people who are renting. A huge number of people are locked out of the market who have the capacity to purchase a property.

I will put it into context. According to the Central Statistics Office the average industrial wage is €35,600 per annum. At €33,800 those people entered a higher rate of tax at 40%, but it is not just 40%. It is 40% plus the universal social charge, USC, and pay related social insurance, PRSI. Consider the Central Bank's rules for borrowing from a financial institution. Three and a half times the salary allows for the borrowing of €124,600 to purchase a property. If two people are earning the average industrial wage it allows for borrowing something less than €250,000. Last year the Society of Chartered Surveyors Ireland issued a very good report which showed that the cost to build a house in greater Dublin is €330,000. The numbers are actually quite simple. Those people are locked out of the market unless they get a very large amount of money from somewhere or somebody else. Not everybody is in a position where their parents or grandparents are capable of helping, where they have an inheritance, or where they won the lotto. Until we do something to help those people, we are going to have serious problems with homelessness and with the rental sector. The problem is growing and getting worse.

In the past, the local authorities had an affordable housing scheme. The information I have received in replies to questions I have put to the Minister is that those schemes have effectively been closed down. They are not functioning now and have not functioned for a number of years. I can understand that this may have been the case during the period when it was cheaper to purchase a property than it was to build one. The issue now, however, is that as the market has recovered and house prices have increased, we have not re-enacted those schemes. The Ceann Comhairle was once a member of a local authority. These local authority schemes were prevalent in greater Dublin and in the major urban areas such as Cork, Limerick, Galway and less so in Waterford. I hold the strong view that the State must intervene. The State has intervened in the past. The Rebuilding Ireland programme is a €5.35 billion scheme for people who are not capable of getting a house and to help deal with homelessness.

However, the niche for people who are just above that in lower, moderate and average pay seem to have been forgotten about. This is an area we cannot just forget. There are too many people renting. If there is a small inducement, we can get them into their own houses; the affordable housing scheme needs to be revived.

Minister of State at the Department of Health (Deputy Catherine Byrne)

I will be taking this matter on behalf of the Minister, Deputy Simon Coveney.

A range of measures is being taken under the Rebuilding Ireland Action Plan for Housing and Homelessness to increase housing supply overall, with the aim of creating a functioning and sustainable housing system which can meet housing demand at more affordable prices. The plan is divided into five pillars, with each targeting a specific area of the housing system. Pillar 3, entitled "build more homes", has a key objective of increasing the output of private housing to meet demand at affordable prices, including by opening up land supply and State lands, including the major urban housing development sites initiative, which identified large-scale sites in the main cities that are capable of delivering significant numbers of homes in the short to medium term to boost overall housing supply, a €200 million local infrastructure housing activation fund, National Treasury Management Agency financing of large-scale “on-site” infrastructure, planning reforms, putting in place a national planning framework and land management actions, efficient design and delivery methods to lower housing delivery costs and measures to support construction innovation and skills.

While there are no plans at present to reintroduce an affordable housing purchase scheme, pillar 4 of Rebuilding Ireland, entitled "improve the rental sector", provides for the introduction of an affordable rental scheme to enhance the capacity of the private rented sector to provide quality and affordable accommodation for households currently paying a disproportionate amount of disposable income on rent.

As set out in the strategy for the rental sector published in December 2016, the commitment to introduce affordable rental units is now to be progressed through kick-starting supply in rent pressure zones. Lands held by local authorities in rent pressure zones are to be brought to market on a competitive tendering basis, with a view to leveraging the value of the land to deliver the optimum number of units for rent, targeting middle income households, in mixed tenure developments. The cost of providing rental units is to be permanently reduced by lowering the initial investment and development costs for providers - approved housing body or private - allowing the rental units to be made available at below market prices without the need for ongoing rental subsidies.

The local authorities concerned will identify a number of sites with potential and will move forward as soon as possible to issue calls for proposals from parties interested in developing projects. As speed of delivery will be critically important, appropriate licence arrangements, incorporating clear timescales for delivery, will be a key feature of the process.

This programme is being co-ordinated with the dedicated measures in Rebuilding Ireland to accelerate housing output from the major urban housing delivery sites, including support from the local infrastructure housing activation fund, LIHAF, where necessary. Through this combination of measures, the Government is satisfied that a more sustainable housing system delivering accommodation at more affordable prices and rental levels can be achieved.

Deputy Michael D'Arcy

It goes to show that there is a major anomaly here, namely, that we have budgeted €5.35 billion for one sector while the sector immediately above it has nothing. It is a huge hole in the scheme. I am disappointed. I raised the matter before the Rebuilding Ireland programme was announced. It is an area we must revisit. In respect of the figure on the help to purchase scheme, we are looking at tens of millions of euro going into that scheme, which is welcome. The area I am talking about has been ignored, however. I flagged it. Something needs to happen here. I will be speaking to the Minister, Deputy Coveney, and the Minister of State, Deputy English.

This is the first occasion that I have got it out of the Department that there are no plans to introduce an affordable housing purchase scheme. It is a serious error. Part of the Irish psyche is to purchase property. Whether we like it or not, that is not going to change. Pillar 4 is about affordable renting. People do not like renting, especially in areas where rent is €1,200 per month. That is €15,000 per year. People will purchase but they need a little bit of help from the State. The State has done that successfully in a number of past decades, going back to the 1960s, 1970s, 1980s, 1990s and the 2000s. It needs to be reintroduced. It is a massive error of judgment by the Minister, Deputy Coveney, and the Minister of State, Deputy English, not to reintroduce the affordable housing purchase scheme.

Deputy Catherine Byrne

I thank the Deputy for his contribution and appreciate his concerns. I had a huge interest in the matter as a member of a local authority during the time that affordable housing was being issued. Many young people got their first kickstart into buying a home for themselves that way.

These issues are included in the policy of the €5.3 billion that has been allocated by the Government to build houses. It is important to remember that we are at the beginning of a different kind of housing environment in this country. The Government is focused on being able to put in place more affordable housing across the board for anybody who wants to be able to buy a property, particularly young people and first-time buyers, which has already started, and particularly around people who want to come back and live in their own community. While there are no plans to introduce an affordable housing scheme at this time, we are confident that the wide range of measures being taken by the Government in the context of Rebuilding Ireland will provide opportunities for people to access good quality housing at a price level that they can afford. The increased supply is already starting to come on-stream and it is expected that it will be fast tracked considerably over the coming months.

I take on board what the Deputy has said; he speaks with great knowledge of the issue. I will relay his message back to the Minister, Deputy Coveney. The Deputy will speak to the Minister himself and we will have opportunity to speak together ourselves.

Medicinal Products Availability

Deputy Joan Collins

I tabled a written question on 24 January asking what the status of talks were between Vertex and the HSE. The reply stated that talks resumed last December and the Minister stated at the end of February that a decision would be made in a matter of weeks. It has now been months. It has been a very frustrating ten months for people in respect of this issue. On 28 and 29 March I received calls from parents of CF children saying Vertex had contacted them to say no contact had been made with it since 2 February. I submitted this Topical Issue matter on 30 March and unfortunately the Minister has not been available since then. Maybe he was waiting for today.

Cystic fibrosis awareness week starts this week. I watched Jillian McNulty last night on the "Claire Byrne Live" show, as well as Ronan and Linda, the parents of young Finn, and Aidan, who are waiting for Orkambi. I believe the talks started again last week. The price has gone down but it looks like the HSE is looking for a package for future drugs like VX-661, which is really a game changer for people with CF. Members of the CF community feel they have been pawns in this process, between Vertex putting them under huge anxiety and the Minister suggesting earlier this year that there would be announcements imminently. Vertex was looking after its own self-interest there, as well.

I would particularly like to mention Hazel Robinson, a mother who has been camping outside these Houses for the last few days. She has a young daughter who has CF. I got word that there could be a statement in the Dáil today and I presume that is why the Minister, Deputy Harris, is in the Chamber. I hope the statement is a positive one. If it is not people will be very angry tomorrow at the demonstration at 1 o'clock. I hope they will be out there celebrating rather than being angry.

Deputy Gino Kenny

I think the Minister might have good news. I was looking at his Twitter account. We will see in a few minutes. Hopefully it is good news for the many people who have been waiting for an end to this long drawn-out saga. Hopefully weeks will turn to minutes now. As Deputy Collins said, there is a young mother, Hazel Robinson, outside the Dáil at this moment. She has been sleeping there for the last three days. She is campaigning for her own daughter, Gypsy Anne.

This makes us reflect on why people go to such desperate measures to highlight such desperate situations. It is terrible that people have to resort to such things.

I hope the Minister will have some good news today in this regard. I realise talks are ongoing with Vertex Pharmaceuticals and the HSE over a proper price structure for Orkambi. I hope the Minister can give a commitment today to the effect that the people who could benefit greatly from this drug can get good news. That would enable them to get on with their lives. If we could start to administrate that, it could help a great many people. It is down to the Minister.

Minister for Health (Deputy Simon Harris)

I thank Deputy Collins and Deputy Kenny for raising this issue in the Dáil. I thank Deputies from all sides of the House who have consistently over a long period raised this important issue relating to cystic fibrosis patients. In raising this issue this evening, the Deputies have provided me with an important opportunity to provide an update in the Dáil on behalf of myself, the Minister of State at the Department of Health, Deputy Catherine Byrne, the Minister of State at the Department of Health, Deputy Finian McGrath as well as all of us in government.

I am pleased to inform the House and in particular cystic fibrosis patients, their families and friends, that the HSE and Vertex have this evening confirmed that an agreement has been reached in principle on the commercial terms for the supply to Irish patients of Orkambi and Kalydeco from next month, and for other treatments and age cohorts following market authorisation in Europe. I am keen to provide this update this evening to the House to offer reassurance to patients on this important matter and to inform them that the HSE and Vertex expect these medicines to be available from next month. I also wish to inform the Dáil that both parties are now working to finalise the contractual arrangements and complete approval processes in advance of 1 May.

I recognise the work the HSE has put into these negotiations over a long period. These were not easy negotiations. A large body of work needed to be done on this important matter. I want especially to acknowledge that this has been an extraordinarily difficult time for cystic fibrosis patients, their families and friends as they have been waiting for this process to conclude. I was determined that the process would conclude and that we would get the best possible arrangement for cystic fibrosis patients. In the past, this group of patients have not been properly and adequately catered for in terms of certainty of medicine supply.

However, I am sure that the Deputies will accept that, given the scale of the investment, the potential benefits for Irish patients and the impact of this decision on the health service overall, it is appropriate to allow the statutory process in this State to be concluded appropriately to bring certainty to matters. As Deputies are aware, the HSE has statutory responsibility for decisions on pricing and reimbursement of medicines in the community drug schemes in accordance with the Health (Pricing and Supply of Medical Goods) Act 2013. In reaching a reimbursement decision, the HSE must examine all the evidence that may be relevant in its view, and it has done so. The HSE takes into account such expert opinions and recommendations that have been sought at its sole discretion, for example, from the National Centre for Pharmacoeconomics.

I will outline the position on Orkambi for the treatment of cystic fibrosis patients aged 12 and older. Following an application by the company, the treatment was assessed in line with the statutory process, following which the HSE called on Vertex to re-enter negotiations. Further meetings were held with the manufacturer in December and early January. The discussions with the company broadened to include Kalydeco and further treatments for CF patients. I hope more iterations of drugs will come on stream and more iterations of drugs will be able to cater for other patients of other ages. It is important we get all these elements right in order that we not only have an arrangement for now but an arrangement that is future-proofed to meet the needs of all cystic fibrosis patients throughout the age spectrum.

Following detailed consideration by the HSE directorate, its legal representative and officials in my Department, further negotiations took place last week. Those discussions have continued up to this afternoon. I am pleased that we are now in a position to reassure people that we are in the concluding stages of the agreement, as I outlined earlier. Further work in the coming days will bring this matter to finality. These drugs will be available for Irish patients in this country from next month.

Deputy Joan Collins

That is great news for the CF community, parents, Cystic Fibrosis Ireland and the children. I watched Aidan last night. He is 43 years of age and his lung capacity is down to 40%. For him, that will amount to a life-saving statement. He will be delighted. I sincerely congratulate the community for staying strong although they have been under extraordinary anguish and anxiety in recent times.

I hope that the march tomorrow will be one of celebration and that they will be out in the streets. Those affected expect the talks to be concluded in the coming days in order that they can see the drugs on the market on 1 May. This is especially important for people who have been on the drug on compassionate grounds and other grounds. This copperfastens for them that they will hold on to these drugs in future. That is important.

The Minister referred to future drugs that could be introduced by Vertex. Have they been included in the deal or are they separate issue? I thank the Minister for coming to the Dáil and making the statement today.

Deputy Gino Kenny

It is good news. There are not many occasions when we hear such news. Sometimes in this House there is good news but most of the time it is bad news. It is good news for the people who are listening, especially the CF sufferers. This lengthy saga has been dragged out.

If there is one lesson that everyone should learn, especially the Government and the HSE, it is that this should never happen again. This has been a drawn-out painful process for those who need essential drugs. It must not happen again. At the crux was the question of drug companies holding governments to hostage. Ultimately, it was about price. We cannot put a price on a person's life or health. That goes across the board. I hope the lesson is learned. Can the Minister comment on the price structure of Orkambi? A figure of €159,000 per year is completely unsustainable. I hope the price can be reconfigured.

Deputy Simon Harris

I thank Deputy Collins, who I know has a sincere interest in this and who has raised this issue on several occasions. I thank Deputy Kenny for his comments as well. It is, as Deputy Kenny, said, a rare enough occasion in this House when we can be unified in our desire to do good and to try to agree on what that looks like in terms of doing good. Providing certainty in terms of access to innovative medicine for patients with cystic fibrosis in this country is a good act.

I have many thoughts on the process in terms of how we negotiate drugs and international collaboration on drug companies. However, I do not believe today is the day for that. I would very much welcome a debate in the House on how we can improve the process and how we ensure we get the best outcome for our patients in the knowledge, ultimately, that the health services in this country and every other country, no matter how large the budget, have finite amounts of money. We should have that discussion and discuss how to keep patients up to date. We should discuss the lessons that can be learned from this process. That would be a worthwhile debate to have in the House and I would welcome it.

I will come back to Deputy Collins on her specific question. I am keen to get clarity on the point first. I do not intend to comment on any specific contractual issues because lawyers need to get involved on both sides. Contracts need to be exchanged and logistics need to be looked at. Ultimately, I need to bring this to Government for agreement at the next available opportunity after Easter. However, I did not want to have this news and allow us go to the Easter recess without sharing the information with patients and their families. I join the Deputies in thanking Cystic Fibrosis Ireland for its advocacy. I thank people like Jillian McNulty and Orla Tinsley. I thank the mothers, fathers, brothers, sisters, friends and people who have contacted all of us. They were all unified by the same desire. They did not want to get caught up in a big political debate. They simply wanted what was best for their loved ones.

Now, we will get on with the process of finalising the arrangements of dealing with the important contractual elements. The message going out to Irish patients from Vertex and the HSE is that these medicines will be available to patients from next month.

An Ceann Comhairle

I think it would be appropriate to congratulate you, Minister, and all the Deputies who have consistently raised this matter as well as all the valiant campaigners who have been alluded to outside the House on a job well done.

Dáil Éireann díospóireacht - Tuesday, 11 Apr 2017