I welcome the Minister of State, Deputy Chambers to the House and thank him for being here, as line Minister, to take this matter. It is always important to thank the Minister with specific responsibility for being here for Commencement Matters.
Nithe i dtosach suíonna - Commencement Matters
Coast Guard Service
I thank the Minister of State for being here this morning. The issues myself and Senator Craughwell are raising predate his tenure as Minister of State at the Department of Transport but they are current issues. We have been raising these concerns in the Seanad for months. The process to award the tender for the new search and rescue contract is utterly flawed. I refer to the exclusion of the Irish Air Corps, because they had suggested they would use an AgustaWestland AW189 helicopter, and the subsequent awarding of the contract to somebody using an AgustaWestland AW189 helicopter. The bid evaluations were all over the place. The winner was not only more expensive; we all know they have reputational delivery issues on their contracts in Netherlands. The Minister of State will be aware the incumbent took a High Court case to pause the awarding of the contract but the judge refused to do so, on the basis that it would cause a risk to life of Irish people. Maybe he was right. During the Oireachtas committee hearings over the past couple of months, we have invited the Ministers, Secretaries General, senior officials in charge of the tender, and Andy Evans, who excluded the Irish Air Corps and ultimately evaluated its tender bid. The Secretary General of the Department has refused permission to all of those people to attend the Oireachtas committee to talk about the process.
The incumbent, CHC, is due to leave the service in June 2025, after the transition to the new service provider, Bristow. However, what really concerns me today about this transition is that I am reliably informed that Bristow has looked to take CHC staff in advance of that transition to the first base of October 2024. I am also reliably informed that Bristow have issued CHC a legally worded agreement to sign, which means the numbers they are looking to transfer to Bristow equate to 80% of the staff of one of our four bases. That really should concern us. Anybody who knows anything about search and rescue would know that this poses a serious risk to the current incumbent and, therefore, a serious risk to life. I do not know how any operator would be expected to maintain a service when 80% of their staff in one base have been taken off them. It is really bizarre and scary. Normally a new operator would come with a transition team but it is clear to me based on the request by Bristow to CHC that Bristow does not have a transition team and is quite happy to put the current service in jeopardy.
The Minister of State was spokesperson on defence in a former life. The notion that a country would not have sovereign capability in search and rescue is repugnant to any reasonable person. The Irish Air Corps put a 415-page document together as part of their bid to take just one base. We wanted CHC, the SAR operator, to hold three bases and the Air Corps to take just one base. I made predictions to both Ministers, who both wrote to me and said they did not know what is going on but that they trusted the public service to do a good job and went on about procurement rules and so on. At no stage did any of us try to influence the procurement of this contract. We wanted to make sure that we had sovereign capability. If a helicopter was grounded for a reason and if the Air Corps was available, they could take that over. The bottom line is that we are winding up with the helicopters we were told were not suitable. Bristow is now looking for 80% of one base. That means the Irish Aviation Authority, IAA, must get involved now. Somebody somewhere has to call a halt to this. We are going to finish up with lives being put at risk simply because the people involved in the procurement of this contract do not understand aviation. There is no aviator in the Department. There is nobody there to advise the Minister of State on aviation. The predictions we were making over the past two and a half years are coming home to haunt us. We will find ourselves having to close a base in the not-too-distant future if Bristow gets its way because you cannot operate without 80% of your staff. The IAA needs to be called in right now and the Minister of State needs to call them in and ask for advice at this point in time.
I thank the Senators for raising this matter. On 30 May 2023, the Government approved the awarding of the next generation Coast Guard search and rescue aviation service contract to Bristow Ireland Limited. The new contract will enable the Irish Coast Guard to continue to provide world-class maritime and inland search and rescue services, environmental monitoring, helicopter emergency medical and air ambulance services, with enhanced mission control and communications systems and, for the first time, introduces a fixed wing element. This long-term next generation contract will run for ten years, with options to extend out to 13 years, to 2036. The contract makes provision for the Air Corps to provide the fixed wing service after five years.
The new contractor, Bristow Ireland Limited, was selected following an extensive and comprehensive procurement project undertaken by my Department that included an initial market engagement process, a pre-qualifying process, an initial request for tender, a negotiation process and final evaluation of a best and final offer tender from the shortlisted bidders. The Chief State Solicitor’s Office, with assistance on occasion from the Office of the Attorney General, provided legal advice to the Department throughout all stages of the process. An independent external process auditor provided regular written assurances to the Accounting Officer of the Department, confirming that each stage of the procurement process complied in full with all relevant EU procurement rules and national guidance, and that the evaluation of tender submissions was conducted with the highest level of professionalism, rigour, and diligence and was evidence-based.
The new service contract provides for the operation of four helicopter bases all on 24-7 duty. Bristow Ireland Limited will operate six AW189 helicopters from four dedicated bases in Shannon, Sligo, Waterford and Dublin Weston Airport. All bases will have enhanced crew accommodation facilities.
In an expansion to the current aviation service for the Coast Guard, two King Air fixed-wing aircraft based at Shannon Airport will provide support for Coast Guard search and rescue operations and environmental monitoring. This will provide for 24-7 availability of one fixed-wing aircraft at any one time. The new aviation service will be delivered through a fleet of modern fuel-efficient aircraft, which have the potential to reduce emissions. The new contract and in particular the fixed-wing element will also provide the Coast Guard with an enhanced capability to monitor the maritime environment, mindful that we anticipate major investment in offshore renewable energy and a growth in continental and other international maritime traffic in the years ahead.
In addition to delivering on its primary roles, the contract provides added value to the State in that the Coast Guard will continue to be equipped to support inland search and rescue, missing person searches and mountain rescue in collaboration with mountain rescue teams, as well as provision of air ambulance and patient transfer services to the National Ambulance Service, including day and night air ambulance services to the offshore island communities and the provision of any other emergency support or humanitarian requests that may arise.
The addition of the fixed-wing capability will greatly enhance the Coast Guard’s capacity to deliver on its assigned roles. The Department and the Irish Coast Guard look forward to working closely with Bristow Ireland Limited in delivering these essential State services. The transition will be a gradual process and the new aviation service will be introduced on a phased basis between now and July 2025 with the first base not going live until quarter 4 of 2024.
The Department and the Irish Coast Guard will facilitate and support and expects to see an orderly and seamless transfer of operations between both contractors - CHCI and Bristow Ireland. The current contract requires that the outgoing operator, CHC, enters into an exit plan and co-operates fully with the Minister and any other party in the transfer of arrangements as may be notified to him by the Minister.
I fully recognise the professionalism and dedication of all personnel engaged in the provision of this essential State service. The specialist expertise of the CHC personnel is highly valued and the experience gained over many years in providing Irish Coast Guard search and rescue and other aviation services will continue to be a valued and sought-after resource. It is imperative that existing and future staff be fully appraised of employment and advancement opportunities available under the new service so as to reduce any uncertainty or distraction.
To that end, I understand Bristow Ireland has indicated that it will be applying the principles of the transfer of undertakings, TUPE, provisions in transferring staff into the new operation. It is currently engaging proactively with Fórsa and Unite trade unions and with the incumbent contractor on a regular basis with a view to agreeing the modalities for the transfer of responsibility of the service, including staff, in line with its respective contractual obligations.
As with the introduction of an any new system, challenges and risks will emerge from time to time. It is important that systems and structures are in place to manage these risks. A new dedicated team has been established within my Department to manage and oversee the implementation of the new contract. There is regular constructive engagement with both the incumbent and the new service provider. Transition progress is being monitored formally on a monthly basis and more frequently as required. I assure the House that during this transition phase, continued safe, efficient and effective aviation services for the Irish Coast Guard is the overarching priority for all concerned.
There is something really worrying in the Minister of State's response. He is telling me that the CHC contractor must fully co-operate with the Minister in the transfer arrangements. Is he telling me that the Minister stands over the fact that 80% of the staff of one of our bases will be gone from January before that base becomes fully operational in October 2024, therefore, putting people's lives at risk? Are these the instructions and direction of the Minister and the Department who the Minister of State says are standing over this transition? Andy Evans from Aerossurance is the man who evaluated the tender. I want to know if he scored Bristow Ireland's transition plan with higher points than he scored CHC's transition plan. I want to know what the IAA thinks about having 80% of the staff of one of our bases going to a company that will not be providing a service, leaving the people who are currently providing the service null and void. I want to know why the successful bidder that has to look after our service for the next ten years is not concerned about putting people's lives at risk for ten months.
The crash of Rescue 116 left the Department exposed as a Department that was unable to oversee the search and rescue system in Ireland. As my colleague has pointed out, 80% of the crew of one base is about to be withdrawn for training with Bristow Ireland. This means that this base must close. I am asking the Minister whether he is prepared to call in the Irish Aviation Authority immediately. There is no aviator among the Minister of State's staff. Any team that is put together by the Department to oversee this does not contain aviators. Will the Minister of State call in the Irish Aviation Authority immediately and ask it to look at the transfer and the methodology that is being used by Bristow Ireland? Lives will be lost. We have already lost four very brave people.
I thank the Senators for their contributions. I always listen carefully to concerns and the matters raised will be carefully considered by my Department during the transition. We can all agree that the provision of an effective maritime search and rescue service is critical to Ireland as an island nation with a strong maritime sector. The sector depends on the reliability and professionalism of the Irish Coast Guard and all its component parts, including the Coast Guard aviation service, and our citizens rely on its support for medical emergencies.
To deliver on its responsibilities, a range of assets are available to the Coast Guard, of which the fleet of Coast Guard helicopters and fixed-wing aircraft is a crucial component enabling timely responses to time-critical and life-at-risk situations, as well as maritime environmental monitoring. I strongly believe that this new contract will deliver a step change in the capability and capacity of the Coast Guard to fulfil its responsibility for the provision of Irish maritime search and rescue services.
The Government welcomed the outcome of a new procurement process and has approved the awarding to Bristow Ireland. All relevant stakeholders are now strongly encouraged to work in partnership over the coming period to deliver a seamless and orderly transition between the old and new contracts. There will always be issues and challenges in introducing change and new services. I assure the House that there is regular and ongoing engagement between my Department, the incumbent contractor and the new service provider regarding these challenges. Progress with transition planning and implementation is being actively monitored formally and frequently by my Department. My Department will continue to monitor and review any potential risks emerging during the transition and will also review any challenges, mitigations or rectifications proposed by either the current or incoming provider. I assure the House that the overarching priority during the transition phase is to ensure the uninterrupted provision of search and rescue, air medical support and other essential State services by the Irish Coast Guard.
Medicinal Products
I acknowledge that the Minister of State, Deputy Naughton, contacted me yesterday to say she would not be available today for which I thank her and she has agreed to engage further on the matter. I thank the Minister of State, Deputy Carroll MacNeill, for being here today to take this Commencement matter. Over the past few months, we have seen a very high rate of overdose due to heroin containing synthetic opioids. We often do not think of how the globe is so connected in this sense. When we look at the Taliban reducing poppy cultivation by 95%, most people will see that as a great thing because it is reducing the amount of opioids coming out of a country and going around the world. However, it then leaves a hole because people will create synthetic drugs to which we are probably not ready to respond or catch up with so everything has a consequence.
Unfortunately, in the past few months, we have seen what this consequence is. The fact that there have been over 40 deaths does not mean that there are not more deaths that have not been captured adequately. This is on top of the fact that already, one person per day dies from an overdose. They are not all opioid overdoses but the ones that are opioid overdoses are preventable with naloxone.
Naloxone is available on prescription in Ireland. There is no need for it to be on prescription. It is not a drug that can be abused.
The only risk with having complete access to naloxone is if somebody thinks that someone is in an overdose and brings them around and that person goes into withdrawal. When you measure the small risk of being overly cautious with the use of naloxone, given that the alternative is death, we should have free access to naloxone in chemists. Currently, pharmacists do not seem to understand how it is prescribed. There is now a box tick for doctors who can prescribe naloxone but lots of doctors who prescribe it are getting calls from pharmacies about this new aspect of the prescription so maybe there needs to be a campaign to help pharmacies understand this new box on the prescription in regard to naloxone.
My fear is that if we do not make naloxone accessible we will just continue to watch people die unnecessarily. We should be able to have naloxone in our homes. The HSE did a very good job of getting the message out in recent months. I protect people that I love very much and ask them not to buy heroin because there is a bad batch. When somebody is in that situation they will often still take the risk because they are experiencing such bad withdrawal, they have no other options, or they have no way of knowing. So many families do not know, first of all, that there is access to naloxone. The individual who is using heroin is the one who gets prescribed naloxone but that does not seem to make sense when they are not going to be the ones who respond to their own overdose. We should be able to go into a chemist, get naloxone and have it in our homes and community organisations. Outside of Dublin we not only have barriers to naloxone but we also have waiting lists for opioid substitute replacement of up to 12 months in some counties, which will also bring down overdoses over time if people are moving from heroin to a more managed maintenance programme.
One more point I wish to raise relates to the prison system. Reports are coming to me from the prison system is that some of the lads are trained in overdose prevention but they do not have access to naloxone. Even in the likes of the John F. Kennedy Presidential Library and Museum in Boston there is a little glass box, like in a fire alarm system, that can be shattered with a hammer to get naloxone out. Some of the men in the prison system are sometimes afraid to alert the prison authorities that there is a potential overdose because they feel it could result in punishment or raids on cells, so they may wait too long before they alert someone. We have the Red Cross in there training people as listeners and on overdose prevention and they could also be tasked to have peer-to-peer access to naloxone if something does happen on a landing, which could be in a glass box like in the JFK museum and other places in America.
Before I bring in the Minister of State, I welcome to the Visitors Gallery St. Anne's Secondary School from Tipperary. It is the unwritten rule of Seanad Éireann that there will be no homework, hopefully until 2024, if that is agreeable to the House.
I thank Senator Ruane. I am glad that the Minister of State, Deputy Hildegarde Naughton, had the opportunity to speak directly with her. I will update Senators more broadly on the position but I know the Minister of State will do further work in that regard.
As Senator Ruane said, naloxone is a prescription-only drug at the moment and measures have been put in place to ensure that as many people as possible have access to naloxone administration courses.
The Department of Health and the HSE are acutely aware of the dangers of all drugs, especially synthetic opioids. They are working in collaboration with European partners to prepare responses to new opioids or other drugs that may emerge.
The emergence of synthetic opioids is monitored closely by the EU Drugs Agency. Ireland supports that mechanism through the early warning and emerging trends network, EWET, which has representatives from the Department of Health, the Department of Justice, An Garda Síochána, the Irish Prison Service, the Health Research Board, the HSE, several national laboratories, and civil society representatives.
Naloxone is used as an antidote to reverse the effects of opioid drugs like heroin, morphine and methadone if someone overdoses. As Senator Ruane has said, it is a lifesaver drug. More than 1,900 people have been trained in overdose awareness and naloxone administration by the HSE and partner services. Some 6,488 units of naloxone have been supplied by the HSE to services. It can be used in emergency situations without a prescription but the barrier is that the person administering the product must have been issued with a certificate stating that he or she has satisfactorily completed a course of training. As the Senator has pointed out, there are many situations where that happens but where access to the drug is more restricted.
We know that during the recent spike in overdose cases, in Dublin and Cork in particular, naloxone has saved lives. In many cases it was administered before emergency services arrived on the scene. The Minister of State, Deputy Naughton, is keen to ensure that it is more readily available. The question is what is the pathway for that and how will it be done. I understand from the Minister of State that work is under way by her officials to ensure that gardaí, for example, are trained to use naloxone and that they would carry it while on the beat. Separately, she is also keen that it is more readily available to people helping those in addiction, including support workers, peers, and family members. She is exploring ways in which to make it entirely prescription free and to see how that might work and what the practicalities of that are. I might allow Senator Ruane to respond if she has any questions.
It is good to hear that the Minister of State is exploring how to make naloxone prescription free. I understand that training is necessary but in an emergency situation it is much like the use of an EpiPen. Nasal naloxone, which is applied in a shot straight up the nose, is obviously a much easier option. There are loads of options.
We must also empower community leaders. Communities are trained in suicide prevention and how to respond. If naloxone could be freely accessed in a chemist, some minimal training could be provided to individual chemists or doctors who could give insight to family members on what is expected of them in an emergency if a trained person is not around. Training is important, but other than bringing someone around this is not a drug that is going to cause any harm. I am glad to hear that the authorities are looking at ways to make naloxone prescription free.
I hope the Minister of State can also communicate with the prisons to see how we can make naloxone more accessible within the prison system. When you walk into Mountjoy at the moment there is a big sign promoting naloxone. When you leave prison you are more susceptible to overdose anyway in those first few weeks because you have not had the same access to an opioid yet you cannot access naloxone in prison. I might follow up with the Minister of State specifically on the point about prisons. The Department of Justice might also need to comment on that as well.
The Prison Service has been working with HSE addiction services on this for some time. It is a hugely beneficial project that benefits both people in prison and their families.
There is significant ongoing training for pharmacists on naloxone administration. There is a body of work on this as the Government recognises that it is a lifesaving drug. It is clear the response it can have on a person's life and their well-being. Notwithstanding that it is currently a prescription drug and that there are restrictions on it, it is the express intention to try to make it as broadly available as possible in order to save lives.
Tax Code
I welcome the Minister of State to the House this morning. I thank her for taking time out of her busy schedule to respond to this Commencement matter.
As I am sure the Minister of State is aware, red tape, form-filling and unnecessary and complex paperwork is the bane of every single business in this country, notwithstanding the importance of due diligence and clear reporting to Revenue. It is important that the Government would be cognisant at all times of the current additional cost, including additional staff involved, in compliance. I can certainly relate to that as someone who has been involved in a small business for the best part of 20 years. Even in the small business that I was involved in, one person could be employed full time on compliance issues. That is an additional burden on businesses.
The vast majority of companies and employers may not be aware of the enhanced reporting requirements for Revenue that are due to come into effect on 1 January 2024, which is only a few short weeks away. The net result of that will be that employers will have to make returns in real time to Revenue when it comes to certain payments such as travel, subsistence, mileage, meals, remote working allowance, vouchers at Christmas, flowers sent on the birth of a child, on retirement, for an engagement, a wedding, or whatever else. To put it mildly, that would appear to me to be slightly over the top. The enhanced requirements will add additional cost to business and tie up additional staff in order to comply with this measure. I do not understand the thinking behind it.
Perhaps the Minister of State will be able to shed light on that. It would suffice for such expenses to be reported yearly or twice yearly, rather than it having to be done in real time. Perhaps the Minister of State will explain the thinking in that regard.
We must always be conscious of the cost of doing business. As IBEC recently highlighted in a report it prepared, the cost of doing business is increasing. There are increases relating to statutory sick pay, the welcome increase in the minimum wage early next year, the new auto-enrolment for pensions and share options being taxed on a payroll basis. All these things add additional costs to businesses. I understand the Minister has to sign a commencement order for this to come into place for 1 January. There is a small window in which more information can be given to employers and companies regarding the effects of this coming in. Perhaps the reporting requirements, which are onerous, could be toned down a little. The requirement to account for everything, such as a bunch of flowers one might send to one's wife, girlfriend, boyfriend or whatever the case may be, appears to be over the top. We must always be cognisant that business is tough at the best of times. As a Government, we must do as much as we can to minimise the burden on business. This measure appears to be going in the opposite direction in that regard. I look forward to the Minister of State's reply.
I am taking this matter on behalf of the Minister for Finance, who will be signing the commencement order. He states that the new requirements under which employers must report to Revenue certain non-taxable benefits paid to their employees or directors were introduced in section 9 of the Finance Act 2022. These reportable benefits are the remote working daily allowance of €3.20, untaxed travel and subsistence payments, and qualifying incentives under the small benefit exemption. The Senator's point in respect of a bunch of flowers is a concern. It is probably worth clarifying that further. That does not seem like a business expense. It is clear that more information is needed, and I undertake to get that for the Senator. The provision was made subject to a commencement order so as to allow sufficient time for stakeholder engagement and IT developments. I note the Senator’s request for a delay but the intention of the Minister is to sign the commencement order and for it to commence from 1 January 2024.
The objective of the reporting is to provide Revenue with timely quality data in support of service and compliance activities and to provide information to assist the Department of Finance with policy-making considerations and tax expenditure reviews. There is a cost to the Exchequer in terms of tax foregone in respect of these tax exemptions and, although it is not expected to be significant, the exact cost cannot currently be ascertained due to the fact that there is no reporting to Revenue in respect of such measures. In addition, the additional data, which has certain compliance controls embedded at reporting stage, will allow Revenue to further develop and inform its compliance risk framework. The aim in that regard is to help to target compliance contacts where required and minimise compliance interventions on compliant employers and the associated costs to the employer and Revenue of so doing.
Preparations for implementation of the new reporting requirements have been a major project of work within Revenue for the past year. There has been a major effort in respect of stakeholder engagement in that time, with Revenue also investing in IT developments to facilitate the new requirements. Software developers and providers have been extensively consulting with Revenue for the past year and have invested in upgrading their products in anticipation of the implementation of the new reporting requirements from 1 January 2024.
Revenue has engaged extensively with a wide variety of stakeholders through the past 12 months as part of the implementation strategy. That included a survey and direct engagements with employers, software providers, agents, representative bodies, beginning earlier this year and continuing more recently with wider stakeholder engagement through an extensive series of webinars delivered from September through to December. Detailed guidance and FAQ material on the new requirements and filing mechanisms, together with informational videos, have been published on the Revenue website. Further guidance and information is provided in the recently updated tax and duty manual part 38-03-33.
In terms of actions to reduce the administrative burden on employers, Revenue has designed the reporting requirements to integrate seamlessly with payment processes based on stakeholder feedback. It is trying to get that working as efficiently as possible. Revenue has confirmed that all three mechanisms for making the returns will be familiar to employers as they are the same as those for reporting payroll. For employers who do not use payroll or other financial software, a manual reporting mechanism is available through the Revenue online service. Furthermore, Revenue has been working and will continue to work with employers to assist them in complying with the new requirements.
Ultimately, the new reporting regime does not impose any additional checks by employers to ensure the conditions of the relevant tax exemption have been met. The data being requested are high-level information which the employer already has an obligation to record. Revenue understands that, for the majority of cases, the reporting of the benefit or payment should align with existing business practices and is satisfied that the real-time reporting requirements should not significantly impact on business processes. Any change is difficult, however, and Revenue will be there to help facilitate this change through the next year.
I thank the Minister of State for her comprehensive response, which has given me comfort. Several businesses to which I have spoken appear to be unaware that this is coming in on 1 January, however. I welcome that Revenue will take a sympathetic, understanding and flexible attitude to this going forward but my main concern relates to small businesses. Large companies are probably better placed to handle an additional requirement such as this, but there is an additional time and cost factor here, particularly for small businesses with fewer than ten employees. The Government needs to be conscious at all times of the cost of doing business. We should be introducing measures to limit the administrative burden on businesses, rather than going in the opposite direction. I would like a common sense approach to be adopted not just in the context of this measure, but to the administrative burden that is placed on businesses from time to time.
Before I call the Minister of State to reply, IBEC provided a briefing last week for Oireachtas Members at which it raised the same issue the Senator is raising this morning. It is a good point.
I welcome to the Gallery our guests from the great state of Tennessee and other parts of the United States of America. They are here on a project relating to the film industry. I will not reveal too much more. It is very appropriate that they are here in the Seanad today. I welcome them and thank them for being here in Ireland. I wish them good luck with their project.
The Senator is right. Anything that increases the administrative burden is difficult, particularly in the first instance. That is why it is important to have a flexible approach to begin with. Once one gets into a new reporting practice, however, it tends to be embedded in the practices of the business. If we can get to a point where more compliant businesses are being audited less frequently or having to draw less attention from Revenue, there is a benefit in the long run for already compliant businesses. I appreciate this is a new measure. It will enhance tax transparency, but it is a new requirement on businesses. I take on board the Senator's broader point in respect of small businesses and the supports that are important for them. We have introduced several schemes that are important for society, such as those relating to sick pay and different forms of leave, but they are difficult in many respects for small businesses, particularly those with few employees, to absorb. I recognise that. There must be a balance within that all the time. We have made significant improvements to the workplace environment in general but we must recognise that small businesses are the engine of the economy and we must support them.
Housing Provision
This Commencement matter relates to affordable housing in Kinsale. It is a wonderful part of the world that has been blessed in many ways by history and geography. It is the second biggest town in Cork South-West. Its population increased by 13.6% between the two most recent censuses, compared with an average of 8.1% nationally. The population is now almost 6,000 people. It is a significant town, particularly in the context of the size of west Cork.
An affordable housing scheme is very much required in the town. Unfortunately, Kinsale probably has the highest property prices in Munster. It is a premium location. There is great demand for property in the area. We need an affordable housing scheme to be put in place to benefit the people of Kinsale and the surrounding areas. Affordable housing just does not exist in Kinsale. Sites with an existing property that is to be knocked down in order for a new house to be built are being sold for €500,000. That is happening continuously throughout the Kinsale hinterland as a result of the location. It is a unique and beautiful location.
The site in question was bought in 2001.
It is where we built the community complex Saile and there has in recent years been a social housing development of 40 houses, but the majority of the site has not been developed since 2001. It is a significant site in the heart of the town that has the potential to deliver more than 112 units of affordable housing for the people of Kinsale and the surrounding area. The scheme is very much needed and wanted in the location but we need movement on the proposal.
I am looking for timelines for when the housing development will be built, how many houses are going to be part of it and, as is always a big issue in towns, what the projected cost will be or how we can evaluate it. Significant schemes have been put in place through Rebuilding Ireland, such as the shared ownership scheme, and we have over recent years changed the model for how to purchase a house. I hope all those schemes can be used, not least in the context of this development of 100-plus houses for the Kinsale area. When we look at developments in County Cork, this is the premier location for trying to get an affordable housing scheme up and running, and it really is a gap in the market. We have in many ways seen a roll-out of social housing throughout the county, in locations from Bandon to Clonakilty and all the way to Bantry, but the lack of an affordable housing scheme of this nature and size is obvious, so we need to move forward with the proposal if we can. Any clarity the Minister of State can give regarding when the potential for these houses can be made realised would be of great benefit to the people of Kinsale.
To clarify, is the site the Senator is referring to in respect of 112 affordable purchase homes also referred to as Cammogue?
Indeed.
I thank the Senator. I was afraid we might have been talking about two different places and I would not like that.
I am happy to update the House on this matter, noting that, in line with the Affordable Housing Act 2021, responsibility for the administration of affordable housing schemes rests with the local authority concerned, in this case Cork County Council. Kinsale is an absolutely place but it is not just for people who can afford very expensive sites or houses. Ireland is for everybody and Kinsale is certainly for everybody, and it is important that there be affordable housing there and that everybody can enjoy living there as much as anywhere else.
The Housing for All Strategy is delivering on the programme for Government commitment to stepping up the housing supply and putting homeownership and affordability at the heart of the housing system. The overall ambition is to increase the supply of housing by delivering 300,000 homes for social, affordable and cost-rental, private rental and private ownership housing purposes over the nine-year period of the plan. Approximately 54,000 affordable home interventions will be delivered between now and 2030 to be facilitated by local authorities, approved housing bodies and the Land Development Agency and through a strategic partnership between the State and retail banks. Funding is made available by the Government to assist local authorities in the delivery of affordable housing for purchase and rent through the affordable housing fund and the cost rental equity loan.
The target for Cork County Council for the delivery of affordable housing from 2022 to 2026 is 189 affordable purchase and cost-rental units in the five-year period to 2026. Cork county has shown a strong commitment to affordable housing delivery and has a comprehensive affordable housing delivery programme in place, which will see it meet and exceed its Housing for All target. Its housing delivery action plan, published on the council’s official website, has identified a new housing need with an affordability constraint of 7.2% of new households throughout the county and outlined the council's proposals to deliver 682 affordable dwellings by 2026. Funding approval is in place under the affordable housing fund to assist with the development costs of 649 affordable homes. These will be predominantly affordable purchase homes, including 111 cost-rental units. Implementation of the delivery programme is advancing well, as the Senator will know better than I. Cork county has successfully delivered the first phase of homes for affordable purchase at Clonmore, Mallow, and is advertising further affordable purchase opportunities at Water’s Edge, Carrigaline, and Cluain Ard, Cobh.
With regard to the development at Cammogue, Kinsale, this is a mixed-tenure scheme of social and affordable houses proposed by Cork County Council as part of a bundle of schemes being procured collectively at various locations within the county. The Cammogue, Kinsale, component will involve the delivery of 112 affordable purchase homes in three phases in 2025 and 2026. My understanding from the Department is that Cork County Council appointed a construction design team earlier this year that will be responsible for undertaking the design process and completing the Part 8 planning approval process. Cork County Council has confirmed the project is progressing broadly in line with that target and that the first phase of affordable homes at this location in Kinsale is expected to be advertised to affordable housing applicants in quarter 4 of 2024, this time next year.
The Department of housing will continue to liaise with Cork County Council in respect of this affordable housing scheme in Kinsale and the local authority’s overall affordability programme. Given the profile of the county, it is also anticipated the Croí Cónaithe towns fund, which includes funding for the vacant property refurbishment grant, a huge opportunity for anybody, and the ready-to-build scheme will also prove invaluable in addressing overall affordability needs in County Cork. The first home scheme is also available to affordable housing candidates nationwide and I understand it has shown significant early signs of take-up in Cork.
As I outlined, we are making progress on delivering on the social and affordable housing targets, although, as the Senator noted, it has been a gap and it is important the Government deliver on that with county councils.
I thank the Minister of State. Before I call on Senator Lombard, I welcome the students and teachers from Rockbrook Park School in south Dublin. I met them earlier and they are very welcome to Leinster House today.
I thank the Minister of State for a comprehensive response on the housing scheme in Kinsale. The information I was looking was outlined towards the end of her contribution, whereby the affordable housing scheme is going to be advertised by quarter 4 of 2024. In a year's time, therefore, we will have the first phase of that scheme, which is really positive news for the people of Kinsale. We have been talking, debating and trying to get this scheme over the line for many years. The site was originally bought in 2001, and while there has been a development of a community complex and social housing since then, the news we will be advertising for expressions of interest for some of these properties in the fourth quarter of 2024 is exactly what I wanted to hear. It is important we stick to those timelines, given people in Kinsale have been watching for these houses for a long time. With the first phase delivered, we can then run through the other two phases, which will be very valuable. I thank the Minister of State for the update.
I look forward to seeing the development of the site and the advertisements this time next year, and I am sure we will both keep an eye out to make sure the timeline is met. I look forward also to visiting west Cork and seeing with the Senator the opportunities that may be there for the vacant property refurbishment grant. As Minister of State with responsibility for credit unions, I am keen to see how credit unions can assist with that, perhaps in Skibbereen and elsewhere, to support people in getting a grant, given they are engaging in this work, and how bridging finance may be able to be provided. As we discussed during the debate on the Finance Bill yesterday, it is important that finance be quickly accessible. We have made provision for cheap bridging finance to be made available to credit unions for retrofits and upgrades. People want to invest in their homes and be able to have access to finance, and the credit unions can do a great deal in that regard. I look forward to visiting credit unions in the Senator's area to see how best that can be delivered for the people in his community in west Cork and to look at how the transition of the vacant property refurbishment grant can be financed and supported through the credit union movement as appropriate.
Cuireadh an Seanad ar fionraí ar 11.18 a.m. agus cuireadh tús leis arís ar 11.34 a.m.
Sitting suspended at 11.18 a.m. and resumed at 11.34 a.m.