Written Answers Nos. 50-66
51. Deputy Pearse Doherty asked the Minister for the Environment, Community and Local Government if he or his Department have engaged in discussions or negotiations with the National Asset Management Agency to act on its requirement to provide a social dividend by releasing properties for social housing to the ownership of local authorities. [39067/12]
Amharc ar fhreagra63. Deputy Michael Colreavy asked the Minister for the Environment, Community and Local Government if he will provide an update on the delivery of the promised 2,000 units from the National Asset Management Agency portfolio; and the details of the method through which they will be paid. [39066/12]
Amharc ar fhreagra1115. Deputy Barry Cowen asked the Minister for the Environment, Community and Local Government the discussions he has held with the National Asset Management Agency regarding social housing lists in relation to procuring suitable housing stock to tackle social housing lists; and if he will make a statement on the matter. [34990/12]
Amharc ar fhreagraI propose to take Questions Nos. 51, 63 and 1115 together.
Over the past 12 months both Minister Hogan and I have met with NAMA to discuss the provision of properties for social housing. Since the announcement in December 2011 that NAMA would commit to providing units for social housing by the end of 2012, a Steering Group comprising my Department, the Housing Agency and NAMA have been working together with housing authorities and approved housing bodies (AHBs) towards achieving this objective. Progress to date in delivering units for social housing purposes has been slow. In the main this is due to the complexities of getting agreement from multiple parties operating within an environment subject to a range of legal and financial constraints. I hope that the recent establishment by NAMA of a Special Purpose Vehicle, to facilitate the leasing of units, will ensure speedier delivery on the commitment.
Notwithstanding the difficulties encountered, NAMA have identified over 3,700 units to be considered for social housing. Of those that have been examined to date, 438 have been deemed unsuitable by housing authorities. A further 542 have been withdrawn, usually by property owners as circumstances change e.g. units have been sold or let privately and are no longer available. Another 1,246 units are for examination by housing authorities as to their suitability for social housing purposes.
At present demand has been confirmed for over 1,500 units which are currently being processed. Of the 1,500 units, 391 are currently under negotiation with relevant parties (i.e. AHB’s, housing authorities, NAMA, receivers, property owners etc.). A further 167 are under active consideration for acquisition by the Special Purpose Vehicle.
To the end of August 2012, 118 housing units have been provided from the portfolio of units identified by NAMA. 94 of these units are for social housing purposes. Of these units 34 are funded under leasing arrangements with the balance of units delivered funded through the local authority social housing capital investment programme or by AHB’s under the Capital Assistance Scheme.
52. Deputy Patrick O'Donovan asked the Minister for the Environment, Community and Local Government if he will consider introducing statutory time limits for the conclusion of hearings or investigations being carried out by An Bord Pleanála into public or private infrastructure projects of strategic importance due to the delays that are being caused and the uncertainty in relation to progressing these projects; and if he will make a statement on the matter. [39016/12]
Amharc ar fhreagraUnder section 126 of the Planning and Development Acts 2000-2012, it is a statutory objective of An Bord Pleanála to determine appeals and certain other matters within 18 weeks. The statutory objective was met in 81% of cases in 2011 compared to 64% in 2010 and 26% in 2009. This objective also applies to strategic infrastructure applications. Where the Board does not consider it possible or appropriate to reach a decision within 18 weeks (e.g. because of delays arising from the holding of an oral hearing), it will inform the parties of the reasons for this, and will indicate when it intends to make the decision.
It is the case, of course, that strategic infrastructure applications, by their very nature tend to be large-scale, complex cases which place greater demands on the capacity and expertise of the Board. Nevertheless, it is the duty of the Board, having regard to the special importance of applications relating to strategic infrastructure development, to ensure that consultations are held and decisions are taken as expeditiously as is consistent with proper planning and sustainable development, and for that purpose to take all practicable steps to avoid delays in the decision making process. It is also a requirement for applicants, prior to the submission of applications for strategic infrastructure development, to engage in consultation with bodies prescribed under article 213 of the Planning and Development Regulations.
Accordingly, while it is important that the Board should seek to maximise the extent to which it can meet its statutory objective, I do not consider it appropriate to introduce binding time limits for decisions by the Board.
53. Deputy Richard Boyd Barrett asked the Minister for the Environment, Community and Local Government his plans for dealing with the 96,000 families on the housing list and to reduce substantially the long waiting times for permanent, secure and affordable housing for those families; and if he will make a statement on the matter. [39035/12]
Amharc ar fhreagra79. Deputy John Halligan asked the Minister for the Environment, Community and Local Government his plans to deal with the 96,000 families on the housing list and to reduce substantially the long waiting times for permanent, secure and affordable housing for those families; and if he will make a statement on the matter. [39038/12]
Amharc ar fhreagraI propose to take Questions Nos. 53 and 79 together.
I am determined to ensure that the social housing programme is framed in a manner which optimises the delivery of social housing and the return for the resources invested. To achieve this it is essential that we tailor the use of available Exchequer supports to prevailing conditions and explore the full range of solutions to address housing needs. The social housing capital budget has been reduced from €1.535 billion in 2008 to just over €333.7m this year, and the financial parameters within which we will be operating for the coming years rule out a return to large capital funded construction programmes. Nevertheless, the Government is committed to responding more quickly and on a larger scale to social housing support needs through a variety of mechanisms, including through increased provision of social housing. In spite of the challenging circumstances within which local authorities are forced to operate, a tentative projection of 4,000 to 4,500 housing units is anticipated for 2012.
Delivery of social housing will be significantly facilitated through more flexible funding models such as the Rental Accommodation Scheme and leasing, but the Government is also committed to developing other funding mechanisms that will increase the supply of permanent new social housing. Such mechanisms will include options to purchase, build to lease and the sourcing of loan finance by approved housing bodies for construction and acquisition. There is also obvious potential, across a range of housing programmes, for the Government’s objective of sourcing and providing suitable residential units for use as social housing to be aligned with the commercial objectives of the National Asset Management Agency (NAMA). My Department and the Housing Agency are engaged with NAMA to ensure delivery of housing units for social purposes beginning in the current year.
54. Deputy Denis Naughten asked the Minister for the Environment, Community and Local Government if he will review the criteria covering the issuing of local authority mortgages and shared ownership schemes; and if he will make a statement on the matter. [38778/12]
Amharc ar fhreagraIn advancing loans for house purchase by lower income borrowers it is of critical importance that local authorities make such funding available on the basis of sound lending criteria. My Department and individual local authorities have a responsibility to ensure that mortgage lending is prudentially based and that the capacity of a borrower to fully service a loan over the full term is realistically assessed and stress-tested.
The current credit policy has been in effect since 2009 to ensure consistency and best practice across the sector by providing a clear evidence-based rationale for decisions on loan applications. All applicants are now assessed according to the same criteria and independent scrutiny. Their ability to pay at the time of application, and according to prevailing interest rates, is assessed and a variety of stress scenarios are also applied. It is the case that the rate of refusal of applications has increased since the credit policy was introduced. However, it is also clear that the loans issued under that credit policy are more likely to be fully performing. I am happy that the current policies are fair and adequately meet the needs of prospective borrowers.
55. Deputy Richard Boyd Barrett asked the Minister for the Environment, Community and Local Government his intentions regarding a foreshore drilling licence applied for by a company (details supplied) concerning an area six kilometres off the Dalkey and Killiney coast, Dublin; and if he will make a statement on the matter. [39036/12]
Amharc ar fhreagra85. Deputy John Halligan asked the Minister for the Environment, Community and Local Government his intentions regarding a foreshore drilling licence applied for by a company (details supplied) concerning an area six kilometres off the Dalkey and Killiney coast, Dublin; and if he will make a statement on the matter. [39037/12]
Amharc ar fhreagraI propose to take Questions Nos. 55 and 85 together.
The proposal by Providence Resources has been the subject of a public consultation process and referral to prescribed bodies. All submissions received from the public and prescribed bodies, together with the applicant’s responses, have been published on the Department’s website. The proposal has been the subject of an environmental assessment by the scientific and technical advisors on the Marine Licence Vetting Committee (MLVC). Their assessment involved a detailed examination of the application materials, issues raised in submissions received from the public and prescribed bodies, and the applicant’s responses to those issues. The assessment carried out by the MLVC involved, inter alia, a consideration of the potential impacts of the proposal on any European Sites or species that could be affected by the works, sensitive species, other legitimate users in the area, and navigation issues.
I will make a determination on the application in due course taking account of the recommendations of the Marine Licence Vetting Committee and the Marine Planning and Foreshore Section of my Department. Information on my determination will be published on the Department’s website. Without prejudging my eventual determination of the current application, it is important to recognise that, should the project progress to commercial exploitation, it would be the subject of further formal applications for consents from the Minister for Communications, Energy and Natural Resources, in the first instance, and then An Bord Pleanála under the Planning Acts, and a full lease or licence under the Foreshore Acts, all of which will require an Environmental Impact Assessment, including full public consultation.
57. Deputy Thomas P. Broughan asked the Minister for the Environment, Community and Local Government if he has accepted all of the recommendations of the recent report of the Pyrite Panel; if he has established a timeframe for implementing all of the recommendations; and if he will make a statement on the matter. [39034/12]
Amharc ar fhreagraI welcome the report of the independent Pyrite Panel which I published on 18 July. It is a comprehensive report containing twenty four inter related recommendations covering a wide range of issues. The report provides a framework to move forward and make progress towards providing solutions for homeowners.
Implementation of many of the recommendations requires the involvement and co-operation of a number of stakeholders and other bodies and may also require detailed policy and legislative considerations. The Pyrite Panel included a detailed Implementation Plan in its report identifying the bodies with primary responsibility for implementation of the various recommendations. While it is not possible to put a definite timeframe on implementation at this early stage, I will be working with those bodies identified in the Implementation Plan to achieve progress as quickly as possible. I am conscious of the plight of homeowners who are coping with very difficult situations and I can assure the Deputy that my Department and I will pursue the implementation of the report with the urgency it deserves.
Work has already commenced on a number of fronts. I have engaged in a consultation process with responsible stakeholders and have set a deadline of the end of September for them to come back to me with credible solutions. Work is also progressing on the development of a testing protocol and a method statement for remediation work. Recommendations in relation to the development of a mandatory certification system for buildings and a registration process for builders are currently being dealt with by my Department.
58. Deputy Sean Fleming asked the Minister for the Environment, Community and Local Government the number of households that have paid the household charge to date; the changes he has made to the communication campaign; the number of letters that have been sent out to households which have not paid to date; and if he will make a statement on the matter. [38995/12]
Amharc ar fhreagraThe Local Government (Household Charge) Act 2011 and the Local Government (Household Charge) Regulations 2012 provide the legislative basis for the household charge. Under the Act, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge, unless otherwise exempted or entitled to claim a waiver. The household charge is on a self-assessment basis and it is a matter for an owner of a residential property on the liability date to determine if he or she has a liability and, if so, to declare that liability and pay the household charge.
The Local Government Management Agency (LGMA) administers the household charge system on a shared service/agency basis for all county and city councils. I understand from data provided by the LGMA that, as of 14 September 2012, 1,045,499 households had registered for payment of the charge, equating to revenue of some €103m. I am informed by the LGMA that between 2 and 13 July, reminder letters in respect of 103,905 non-registered addresses were issued by local authorities nationwide, with a second tranche issuing between 7 and 20 August in respect of 65,212 households. Local authorities are currently in the process of issuing a third and final tranche of reminder letters to 52,246 households nationwide. In total, some 221,363 letters have been issued to date to households that have not paid the charge.
The communication and advertising campaign for the household charge is a matter for the LGMA and the county and city councils. Following the 31 March payment deadline, national and local radio advertisements were undertaken to remind people of their obligations under the household charge legislation. In particular, this campaign was aimed at reminding householders that late payment penalties applied after 31 March and that unpaid household charges and late payment penalties remain as a charge against the property concerned and will have to be discharged in the event of the transfer or sale of the property. In addition, local authorities also took local initiatives to remind people of their obligations under the legislation. Further local and national communications and advertising will be undertaken by the LGMA and local authorities as considered appropriate.
59. Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government his views on the current method of commercial rate calculation for small and medium sized enterprises; if he considers the current method to be outdated; if he will consider the introduction of a system, administered by the Revenue Commissioners, which would reflect the performance of the enterprise rather than the rental value of the premises; his views on whether such a system would be pro-enterprise and jobs and would also reduce disincentives to occupying vacant commercial units by providing a safeguard to business owners; and if he will make a statement on the matter. [38264/12]
Amharc ar fhreagra1105. Deputy Simon Harris asked the Minister for the Environment, Community and Local Government if he intends to reform the system of commercial rates levied on businesses and paid to local authorities; if he will consider some form of inability to pay clause being introduced into the rates system; and if he will make a statement on the matter. [38848/12]
Amharc ar fhreagraI propose to take Questions Nos. 59 and 1105 together.
I have no immediate plans to amend the legislation governing commercial rates. Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The Commissioner for Valuation has sole responsibility for all valuation matters including the most appropriate method of valuation. The levying and collection of rates are matters for each individual local authority.
It is important to acknowledge that commercial rates, as a local tax, and the rating system generally are deeply embedded in the local government system. A large body of case law is well established and local authorities and ratepayers are, in the main, very familiar with, and generally accepting of, the operation and practice of the rating system. Rates are also a stable source of financing for local government which is not affected unduly by short-term changes in economic circumstances.
A property-based tax such as rates has a distinct advantage over any tax based on profits or incomes as it is generally found to be easy to collect and difficult to evade. A system having regard to economic factors on an ongoing basis would create uncertainty by providing for continuous change to the valuation base. Such a system would not provide a stable basis for funding local government and would require significant additional resources to operate.
In relation to the suggestion of a disincentive to the occupation of vacant premises, I can confirm that under rating legislation, the person liable for payment of rates is the person in occupation of a rateable property on the date of the making of the rate by the relevant local authority. The owner, rather than the occupier, may be liable for commercial rates if the property in question is unoccupied on the date of the making of the rate. Should a person’s occupancy commence after the date of the making of the rate, then that person is not primarily liable for rates for that year. However, as a subsequent occupier, that person can be held liable for up to two years arrears of rates if they cannot be recovered from the person with whom the primary liability lies. However, an owner of a vacant premises is entitled to a refund if the property is vacant for specified purposes. These are where the premises are unoccupied for the purpose of the execution of additions, alterations or repairs; where the owner is bona fide unable to obtain a suitable tenant at a reasonable rent; and where the premises are vacant pending redevelopment.
Commercial rates income makes a significant contribution to the current funding requirements of local authorities. Rates provide the means by which local authorities can support the services essential to communities, and therefore business, across the full range of local activities including roads, water and waste services, fire and emergency, libraries and a range of community, amenity and social activities. I am committed to continuing to impress on local authorities the need to maintain and enhance efficiency measures with a view to minimising rates and other charges to business.
60. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent, if any, to which agreement has been reached or arrangements put in place to set the levels and methodology for collection of the household charges which arise as a consequence of the memorandum of understanding and the general economic situation arising in the wake of the ongoing economic crisis which he inherited on assuming office; if he will try to ensure that the level of such charges will be cognisant of the many serious financial obligations and cutbacks now faced by the people; if he intends to have regard to the ability to meet the payments in such circumstances; if it is expected that payment can be made on a monthly basis or other deferred basis; if it is expected that the relevant local authorities are likely to benefit in a meaningful way from such charges; and if he will make a statement on the matter. [39015/12]
Amharc ar fhreagra61. Deputy Seamus Kirk asked the Minister for the Environment, Community and Local Government the impact he anticipates the future property tax will have on local authority revenue; if the revenue raised will go directly to the local authorities; and if he will make a statement on the matter. [39003/12]
Amharc ar fhreagra62. Deputy Timmy Dooley asked the Minister for the Environment, Community and Local Government if he will outline his proposals for a property tax; the timeframe for the implementation of same; the estimated average cost per house; and if he will make a statement on the matter. [38991/12]
Amharc ar fhreagraI propose to take Questions Nos. 60 to 62, inclusive, together.
The EU/IMF Programme of Financial Support for Ireland contains a commitment to introduce a property tax for 2012. The Programme reflects the need, in the context of the State's overall financial position, to put the funding of locally-delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services. It was considered that, in light of the complex issues involved, a property tax would take time to introduce and accordingly to meet the requirements in the EU/IMF Programme, the Government decided to introduce a household charge in 2012 as an interim measure.
By international standards, the revenue base of local authorities in Ireland is relatively narrow, and local authorities here are disproportionately dependent on central Government funding. The introduction in 2009 of the charge on non-principal private residences represented an important step change in how local government is financed and was the first dedicated new source of funding for local authorities in some years. It did not, however, go far enough in addressing the imbalance in the sector’s financing. A more effective broadening of the revenue base for local government will be achieved by the household charge and the forthcoming full local property tax.
In February 2012 an independently-chaired Inter-Departmental Expert Group was established to consider the structures and modalities for an equitable valuation-based full local property tax. The Group recently submitted its report to me and its recommendations will be considered in due course. Proposals will be brought to Government as soon as possible and it will then be a matter for the Government to decide on the exact details of implementation taking into account the modalities involved. The Government has decided that the local property tax will be collected and administered by the Revenue Commissioners.
64. Deputy Dessie Ellis asked the Minister for the Environment, Community and Local Government his plans to work with the other relevant Departments to put in place a model for housing bonds as promised in the Programme for Government. [39063/12]
Amharc ar fhreagraWith levels of capital funding for social housing reduced by just over 75% since 2008, the financial parameters within which Ireland is operating, and will be operating over the coming years, rule out a return to very large capital-funded construction programmes by local authorities. Accordingly, delivery of social housing will be primarily facilitated by more flexible funding models, with the social housing leasing initiative, in its various forms, playing a central role.The Programme for Government listed some of the options, which my Department is exploring on a continuing basis, to facilitate the increased provision of social housing, including through the mechanism of social housing bonds and the viability of utilising the value of existing social housing stock as a means of leveraging further funding for the provision of social housing. The Housing Policy Statement, published in July 2011, elaborated on this, setting out a range of mechanisms through which the Government is committed to developing the supply of permanent new social housing. Such mechanisms will include options to purchase, build to lease, and the sourcing of loan finance by approved housing bodies for construction and acquisition.
Under the latter option, approved housing bodies will be able to build or acquire new social housing, remunerating their borrowings with funding provided by the Department under the leasing scheme. At the end of the loan period the approved housing body will own outright the units which will either continue to be made available for social housing purposes or may be sold to sitting tenants. A number of projects of this nature, involving loan finance from the Housing Finance Agency being used by an approved housing body to purchase new stock, have been approved. I expect this facility to be a critical source of new social housing provision in the years ahead. A range of other funding options remain under examination with a view to maximising the delivery of housing supports.
65. Deputy Joe Higgins asked the Minister for the Environment, Community and Local Government the progress made in remedial works to housing units in Belmayne development, Dublin, which were intended to ensure compliance with fire safety building regulations following the discovery of breaches of those regulations in April 2011; and if he will confirm that all housing units in Belmayne now comply with the building regulations on the fire safety. [38948/12]
Amharc ar fhreagraMy Department understands that Dublin City Council, through Dublin Fire Brigade, was notified by the developer of a construction defect affecting 232 properties at the Belmayne Housing Complex. The developer, acting responsibly in consultation with his Fire Engineer, contacted the Local Authority immediately and has undertaken to carry out remedial works to all of the properties affected. Dublin City Council and the Fire Consultants for the developer have agreed on the works necessary to rectify the problem units – this involves inserting fire-proof board to seal a 75mm gap in the voids above ceilings and the rebuilding of service ducts with full fire-proof construction. The Fire Officer is satisfied that when these remedial works are completed this defect will have been addressed.
My Department is advised by Dublin City Council that remediation work on 197 units has now been completed. Therefore 35 units remain to be remediated and the works involved remain the responsibility of the developer. The onus in this instance is on the developer to ensure compliance with the requirements of Part B of the Building Regulations and my Department understands that the developer has retained the services of Fire Safety Consultants to carry out inspections of the works during the remediation process.
66. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the estimated impact the 2012 Valuation Bill will have on local authority revenues; and if he will make a statement on the matter. [39012/12]
Amharc ar fhreagraLocal authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The Commissioner of Valuation is conducting a programme of revaluation of all commercial and industrial properties throughout the State on a county by county basis. The purpose of the revaluation process is to provide for more consistent and up-to-date valuations for rating purposes and to assist in providing a more equitable distribution of valuations across those liable to pay rates.
I and my Government colleagues have been concerned for some time with the slow pace of the revaluation programme. In this regard, the Government approved the drafting of a Bill to amend the Valuation Act 2001. In addition to accelerating the revaluation of all rateable property in the country, the Valuation (Amendment) (No. 2) Bill proposes to amend existing valuation legislation in a number of areas by facilitating the adoption of new approaches to valuation, including self-assessment and external service delivery options, through the outsourcing of elements of the valuation function, where appropriate. The amendments are formulated with the intention of making the valuation code more transparent, to correct deficiencies in the Valuation Act 2001 and to streamline aspects of the Act, especially with regard to the appeal procedures.
While the enactment of some sections of the Valuation (Amendment) (No. 2) Bill will increase costs for some State bodies, the expansion of the rates base should allow for reductions in the overall rates burden on businesses while maintaining the rates income of local authorities.
