Dáil Éireann debate -
Thursday, 9 Nov 2023

I am sure the Minister will join me in welcoming the representatives of the Not Our Fault 100% Redress campaign in the Gallery, from Counties Dublin and Clare. Can the Minister give us a more precise update, both on when the emergency funding for interim works will be available and on when he intends to publish the legislation, complete the regulations and open the full redress scheme? We are looking for something a bit more definitive than what we have been getting by way of parliamentary questions and responses from the Taoiseach and Tánaiste to date.

I too welcome those homeowners affected by this serious issue, which the Government is committed to helping resolve. Since the receipt of Government approval in January of this year, I have made considerable progress on the various programmes of work that are required to place the apartment remediation scheme on a statutory footing. We all agree it is important that this happens. As the Deputy will appreciate, it is complex. There are legal, technical and financial issues and challenges involved in establishing the scheme, many of which we have surmounted already. My Department is advancing the steps to prepare the required legislation to put the remediation scheme on a statutory footing as a matter of priority. Given the complexity of the issues, including the significant amount of Exchequer funding we are committed to providing to assist affected homeowners - the retrospection element is fully agreed - sufficient time is required to ensure that the scheme is fit for purpose and contains appropriate oversight and governance. It is expected the draft legislation will be published next year but it is intended that, subject to the legislative process, the statutory scheme will be in place shortly thereafter.

I have given priority to the steps that are needed to underpin the legislation, but more importantly, to support the introduction of interim measures which can address immediate fire safety defects. A significant milestone was met with the publication in July of the code of practice for the remediation of fire safety defects. Significant work went into that because we needed chief fire officers, engineers and so on to detail what the appropriate works would be. This guidance is crucial to support the development of a practical approach to resolving fire safety defects on an interim basis and to ensure a consistent approach nationwide. That is key to the effective operation of the remediation scheme when it becomes operational. As recently as 4 September I held a public webinar alongside the Construction Defects Alliance and the Apartment Owners' Network, which was attended by approximately 400 people. I have held a number of such webinars since the Government approved the establishment of the scheme. I will come back in during my supplementary contribution with more specific details.

As I am sure the Minister knows, there is a growing frustration among homeowners, as well as among social housing and private rental tenants impacted by Celtic Tiger era defects. We have always said we want to work with the Minister on a collaborative basis and it is an issue the Minister knows many of us in the Opposition have been campaigning on for a long time. The frustration is that the Minister received the report from the working group on defective buildings a year and a half ago. The Minister brought a memorandum to Cabinet almost a year ago and we welcomed the fact that he was promising both a redress scheme and emergency measures. The Minister met homeowners in a webinar on 18 January and he made it clear to them that legislation and, crucially, emergency funding, would be available this year. For some of the families affected, that emergency funding is for vital fire escapes, fire wardens and sprinkler systems etc. I do not want to make this a political argument - we will have some of those in the subsequent questions - because we want to work with the Minister on this. People want to know on what date they will be able to apply for the emergency funding, which is a reasonable question. Also, on what date does the Minister expect to publish the general scheme of the legislation?

In my initial answer I wanted to inform the Deputy, the House and most importantly residents that there is work ongoing on this on a daily basis. We have appointed the programme manager in the Housing Agency, who will be speaking to residents next week when we have a further webinar on 14 November. I am pleased to inform homeowners that the interim scheme addressing essential fire safety works is being finalised. That will be completed within a matter of weeks. The Housing Agency is appointing a programme manager to co-ordinate the scheme. The Housing Agency has the expertise and we have the programme manager in place, who is a senior staff member who will operate this. That meeting with residents will take place next Monday, 13 November and I encourage all of those who are affected to be there. Within a matter of weeks, hopefully at the end of this month, we will be able to open the scheme for applications. We have already done some work on the portal, on which residents have been updating their details of the specific defects in their estate. We have captured a lot of information there. I intend that within the next few weeks we will have the interim scheme open. I understand that there is a frustration among people because serious works need to be done but I want to recommit and say in the House that the Government is committed to moving this scheme forward.

I am concerned about the timeline for the legislation. In a number of recent replies to parliamentary questions the Minister has said that the general scheme will be published within the first half of next year. If that is the case then it is likely to conclude somewhere in the first half of next year, before the summer. As we have seen with the enhanced defective blocks scheme, it took a year from passage of the legislation to completion of the regulations. Therefore, it would be helpful if the Minister was able to provide clarity as to whether this time the legislation and regulations will be different to give people some comfort. If it works similarly to the revised defective blocks scheme, even if the legislation is published next year, it will not be until 2025 before a scheme opens, which is far too late. Is it the Minister's intention that the legislation would expand the remit of the pyrite resolution board to allow it to bring its expertise in defects remediation to this issue? A grand scheme would be the wrong approach. An end-to-end scheme, led by an enhanced pyrite resolution board under the auspices of the Housing Agency, is the best way to go. It would be welcome if the Minister could provide some clarity on that.

The legislation will be detailed and we need legislation to underpin this scheme. We have worked collaboratively on this. The Housing Agency is the lead agency on this and it has extensive experience in that regard. The legislation will be published next year and with the co-operation of Members across the House we can work together to get that through as expeditiously as possible. This scheme will be with us for a number of years so we need to get the legislation right and correct. That is not holding back the implementation of the interim measures scheme. I am also looking at what we can do with retrospective payments next year. We can do that on an administrative basis in advance of the legislation being passed. It is important that we get this right, which all Members will agree on. Our goal and main objective is to help residents get their homes and lives back together and we will do that. It will be a 100% redress scheme for affected homeowners. I look forward to continuing-----

I join in welcoming members of the Not Our Fault 100% Redress campaign. I want to ask the Minister of State about vacancy and dereliction and what the Government is doing to tackle this scourge across the country. In particular I want to ask what the Government is doing to ensure that voids can be converted. We can see the delays in the restoration of local authority homes into use and we want to see those delays tackled. I also want to ask about the Minister of State's representations to the Minister for Finance in respect of the number of vacant homes which may be subject to the vacant homes tax. I have a number of questions and I am seeking clarity on the plans to tackle vacancy and dereliction.

Tackling vacancy is a key priority for this Government and the vacant homes action plan contains a suite of measures which actively address vacancy. We see huge potential in existing housing and building stock in our villages, towns and cities to meet the objectives of Housing for All.

To give some examples, full-time vacant housing officers are now in place across all local authorities. A compulsory purchase order, CPO, activation programme was launched in April which supports a proactive and systematic approach by local authorities to bringing vacant and derelict properties back into use as homes. Some €150 million is being made available under the urban regeneration and development fund for local authorities to acquire vacant or derelict properties for reuse or sale. In addition, the Croí Cónaithe towns fund is successfully supporting the refurbishment of vacant and derelict properties and sites through the vacant property refurbishment grant and ready-to-build scheme. Feedback on the grant has been very positive, with 5,015 applications reported to date and 2,369 applications having received approval.

In relation to voids, the Department is supporting the return to use of over 2,400 properties through funding of €31 million in 2023. Local authorities are working to transition from a largely response and voids based approach to housing stock management and maintenance to a planned maintenance approach. I note that €5 million has been ring-fenced to support the transition to a planned maintenance approach in 2023.

On the vacant homes tax which was introduced by the Minister for Finance, I note that in budget 2024, the rate of the tax was increased to five times the property’s existing base local property tax charge. Revenue has undertaken work to identify approximately 25,000 property owners who are liable for the tax. These new initiatives are addressing residential vacancy comprehensively. The commitment the Government has made to addressing vacancy will continue to play a vital role in delivering homes and revitalising communities.

I thank the Minister of State. In reply to questioning by the Labour Party of him and the Minister previously, we heard that ending the scourge of vacancy and dereliction is a priority for the Government. We are delighted if that is the case but the reality is that it appears a very much hands-off approach to this is being taken by central government. With respect, the Tánaiste has previously said in this House that responsibility for tackling vacancy and dereliction rests with local authorities, yet what we are hearing, and what Dublin City Council in particular is saying, is that the Government has reduced the subvention for the renovation of voids. Figures from our local Labour Party councillor in the south-west inner city, Councillor Darragh Moriarty, project that fewer voids will be turned around over the coming years as a direct result of Government cutting central funding. We are hearing that there will be some 220 fewer voids addressed. Dublin City Council's consultative group has apparently been notified by the Department of Housing, Local Government and Heritage that it will be reducing central government's subvention for refurbishment from 25% to 20%. This is at a time when we are seeing construction costs increasing. In The Irish Times today, Olivia Kelly quotes a senior engineer with Dublin City Council saying that Government funding for repairing and refurbishing empty properties is constantly coming down. Where is the priority?

I refute the claim that the Government is taking a hands-off approach. Quite the opposite is the case. We are taking a very much hands-on approach. A vacant homes unit has been set up within the Department and the schemes I outlined are delivering the reuse and the repurposing of a lot of housing stock across the country. To clarify the position, we received a submission from Dublin City Council on the voids programme only last week and we will be making additional funding available for that programme. Critically, we will continue to respond to the needs of local authorities. We have put in place vacant homes officers. It is down to the local authorities to be proactive and to meet the challenges in their areas. The Government will not be found wanting in providing support.

I thank the Minister of State for that assurance. It is certainly very welcome to hear additional funding will be made available. Perhaps the Minister of State will explain precisely what level of funding will be available and whether it will ensure local authorities can tackle the real scourge of vacancy and dereliction, particularly in local authority and social homes. There are approximately 500 council homes in Dublin city awaiting refurbishment. We are hearing from officials and our elected representatives at council level that there is simply not funding available to bring those back into use. While we very much welcome initiatives that have been taken, the reality is that it is a hands-off approach. We still do not even have a national register on vacancy and dereliction. The duty of compiling figures on vacancy and dereliction is left to individual local authorities. As a result, we are seeing a seriously piecemeal approach to this. In February last, we were informed Dublin City Council seized just 25 derelict homes in five years. There just does not seem to be any urgency from central government in ensuring local authorities are given the support they need to bring vacant properties back into use and that central government is maintaining an oversight and the vital data we need on the true level of vacancy and dereliction.

Central government is being incredibly proactive in supporting local authorities. Regarding the additional funding I spoke about, this will be granted on the basis of work done. If additional funding is required by local authorities for work completed, the funding will be in place for them to see the work through.

That is critically important. The register on vacancy and dereliction is down to the local authorities. It is important they continue to maintain that register and there is consistency across all 31 local authorities. The CPO programme is working quite well. I know from experience in the two local authorities in my constituency that both have been very proactive on the CPO programme. Again, we will encourage local authorities to continue to support that. In summary, local authorities need to be proactive and central government, including the Department, will respond as required. This matter does, however, require a proactive approach by local authorities.

One of the most disappointing aspects of the Minister's tenure has been his failure to deliver genuine affordable homes to rent or buy through local authorities, approved housing bodies and the Land Development Agency, LDA. As the Minister knows, of the 4,400 genuinely affordable homes to which his plan commits, halfway through this year only 123 had been delivered. I accept there is significant additional delivery in the second half of the year. Will the Minister provide an update on the total delivery of those schemes by the end of the third quarter and whether he expects to meet his target of delivering 4,400 affordable homes by year's end?

Housing for All sets out the range of actions necessary to increase the supply of housing to the required 33,000 homes on average per year over the next decade. Some 54,000 affordable homes will be delivered between now and 2030, to be facilitated by local authorities, approved housing bodies, AHBs and the Land Development Agency and through the first-home scheme, which is a strategic partnership between the State and retail banks. In the first 18 months of the new programme, over 3,000 affordable homes have been delivered through our new cost-rental schemes, the first-home scheme and the local authority affordable purchase scheme. This momentum will continue as the pipeline of affordable housing delivery is developed and expanded by our delivery partners, including local authorities, AHBs, the LDA, and the first-home scheme.

Data for affordable housing delivery are published on a quarterly basis, similar to social housing delivery. These data are published up to quarter 2 of 2023 and are available on the Department's website. Local authorities are in the process of systematically collating information on delivery of affordable purchase and cost-rental homes in their administrative areas, including returns for AHBs and the LDA for quarter 3 of 2023. This data are currently being verified and I expect the Department will be in a position to report to confirm quarter 3 2023 social, affordable purchase and cost-rental housing delivery shortly.

I thank the Minister of State. I could have got all of that information from the Department's website before we came to the Chamber. Here is the problem. In the general election, Fianna Fáil promised in its election manifesto to deliver 10,000 genuinely affordable homes every year for five years if it got into government. It promised 6,000 affordable purchase houses through the Ó Cualann model and 4,000 affordable cost-rental homes. The Minister inherited the serviced sites fund when he was appointed and not a single home was delivered from that fund in 2020 or indeed in 2021. In 2022, the Minister promised 2,000 genuinely affordable homes through local authorities and approved housing bodies and 2,000 unaffordable high-risk shared equity loan homes. He only delivered 1,000 of the first category and 137 of the second. So far this year, of the 4,400 genuinely affordable homes that have been promised, only 123 have been delivered, that is, 101 affordable purchase homes and 22 cost-rental homes. The LDA had not delivered a single affordable home halfway though the year. I would much prefer to hear from the line Minister because he is responsible for this. What I want to know is if he will meet the target of completing 4,400 genuinely affordable homes by the year's end and whether these homes will be genuinely affordable.

The target for the period up to 2030 is to complete 54,000 units. Our target for this year is to deliver 5,500 units. Last year, we delivered 1,750 units and from looking at the various aspects, the momentum is good. The local authorities have affordable homes projects for 4,300 units in total across 72 projects in 20 local authorities.

As the Deputy is aware, they have already advertised for 920 affordable homes. It is not as if they have not been delivering. They have. Last year, local authorities delivered 223 affordable purchase homes, which was two thirds of their target. They met 100% of their cost rental target. The Land Development Agency-----

The figures the Minister of State is putting in the public domain are factually incorrect. The report on the Department's website indicates that it did not deliver 1,750 affordable homes last year because, in fact, 750 of those were under the first home scheme. They were only approvals. The actual number of drawdowns was 137. The Government set a target last year of 2,000 genuinely affordable homes and delivered 1,000. This year, it has set a target of 4,400 genuinely affordable homes and only 123 were delivered halfway through the year. There is a growing concern about affordability. In my constituency, affordable purchase homes delivered through the local authority, with the affordable housing fund which the Minister of State knows we supported the legislation for, are now for sale at a total price of €400,000 to €435,000. The discounted purchase price is €300,000 to €350,000, but one ultimately still has to pay the full €400,000. How many affordable homes will the Government deliver under the scheme this year? Will they be genuinely affordable? What is on sale today in Clonburris and Clondalkin is not affordable for the vast majority of working people.

As the Deputy is aware, the local authority affordable housing fund scheme is equity based. We have made changes to that scheme in the current year. It ensures people will get a discount of at least 22% when they qualify for the help to buy scheme, which Sinn Féin opposed. Our system of people being able to purchase their own homes is not binary. Sinn Féin's system is binary. We want to ensure people can purchase privately through the first home scheme. We want local authorities to be able to fund the building of houses for affordable purchase and affordable cost rental on their own lands with the serviced sites land. The Land Development Agency has projects on the go. There are just under 1,800 cost rental homes in Project Tosaigh. It expects to meet its target of 5,000. The Deputy referred to that. We are working to ensure that we have the maximum number of affordable houses available for people across a range of schemes, including both affordable purchase and affordable cost rental. We are doing that in a way that is holistic.

I thank Deputy O'Callaghan for his question. Since the publication of Housing for All, the Government has focused on the activation of permissions, which we are seeing happen now. I will go through that in some more detail. The residential zoned land tax is a new tax, introduced in the Finance Act 2021, which seeks to increase housing supply by encouraging the activation of land which is suitably zoned and appropriately serviced. Draft maps were published by local authorities on 1 November 2022, supplemental maps were published on 1 May 2023 and final maps of land in scope will be published on 1 December 2023. Significant work has gone into that through our local authorities, with public engagement on that. Liability to the tax will commence on 1 February 2025, subject to enactment of the Finance Bill 2024.

Where development is not commenced on the identified land, the landowner will be subject to a tax of 3% of market value annually, which will be administered by the Revenue Commissioners. The tax will therefore incentivise landowners to either develop land or to sell it to someone who will develop it, with the benefit of planning permission, to ensure they are not subject to any annual tax liability on their land. The tax will operate in conjunction with amendments in 2021 to section 42 of the Planning and Development Act 2000 which mean that the five-year duration of a planning permission can only be extended once commencement of development has occurred and, importantly, substantial works have been undertaken, introducing a requirement to "use" a development in order to avoid planning permission lapsing.

On the activation front and delivery this year, up to the end of the third quarter, we have seen more commencement notices and more homes being built. We are projecting that we will exceed the target set in Housing for All this year of 29,000, which is good. We are seeing planning commencements increase substantially, particularly in the third quarter, in months where one would usually not see that happen, July and August. An element of that is the development levy waiver and the Uisce Éireann connection charge waiver. Those initiatives, coupled with the residential zoned land tax, are having the effect of more land coming into the market and more planning permissions being activated.

I will address issues regarding the residential zoned land tax in my second contribution. According to the Department of Finance, planning permissions for 100,000 homes around the country are unactivated. In the programme for Government, the Minister gave a clear commitment to introduce lose it or use it measures to penalise developers who sit on planning permission. More than three years later, we now read reports that developers have got yet another big win, as these measures have been scrapped. That is what is being reported. Caving into developers is another kick in the teeth for thousands of people looking for somewhere affordable to live. Why are strong measures and penalties relating to use it or lose it not being implemented? Will the Minister honour the commitment that he made to bringing forward strong use it or lose it measures in the planning and development Bill?

What is happening on the ground can be seen across the country, including in Deputy O'Callaghan's constituency in Dublin. We have not seen anything like the number of homes and apartments under development since 2007. Progress is being made. The residential zoned land tax is a big change in how we manage land and how we will deal with reducing speculation on land and people hoarding land. It is already having an effect in advance of it coming in. Lands have been sold back into the market by agencies and we need that. The State itself, through the land acquisition fund which we established, is buying land for local authorities and approved housing bodies to build up their own land banks so we can develop more. Those activation measures are working. I already explained in my initial response that no extension to planning permissions will be given unless substantial works have been undertaken and that we are introducing a requirement to use a development. The measures that we brought forward are taking hold and working this year. I believe the residential zoned land tax will further help and is already helping in activating land and reducing land hoarding, which none of us want.

Will the Minister explain why the residential zoned land tax is being delayed until 1 February 2025? We are in the middle of a housing disaster for people. These measures are needed as quickly as possible to eliminate any land hoarding and to reduce speculation. Why kick it down the road yet again, given the crisis that we are in at the moment? What can possibly explain more delays in the approach? That is not treating this like the emergency that it is. Will the Minister tell us why that has been done? The explanations I have heard from the Taoiseach and Tánaiste simply do not make sense. They describe problems with the land hoarding tax, or residential zoned land tax, which are actually what it is designed to do. It is designed to address whether land is going to be built on and if it has the proper zoning on it. That is what it is meant to do. Why delay it and kick it down the road in the middle of an emergency?

Across every single local authority, all maps were published. We had to allow the public to make submissions if they wanted to request a dezoning of land too, where land was zoned residential, they had no intention of developing it and did not want to develop it. We had to engage with all relevant stakeholders to allow that public information campaign and for public consultation to happen. One has to have a fair approach to this. I can tell Deputy O'Callaghan that, with the residential zoned land tax coming in from the start of 2025, it is already having the effect of people selling land or seeking dezoning. The dezoning is important because local authorities or planning authorities are not counting that land in their overall view.

We have seen this happen and it will work.

I understand the Minister has received the final copy of the report from the Housing Commission on the proposed referendum to insert the right to housing in the Constitution. Will the Minister confirm to the House that it is the recommendation of the Housing Commission to hold such a referendum and that it will provide appropriate wording? When will the Minister publish the report? Most importantly, when will he bring a memo to Cabinet to advance its recommendations and get Cabinet approval to set a date next year in order that the electorate can decide whether to enshrine the right to housing in the Constitution?

In line with programme for government commitments I established the Housing Commission in December 2021 as an independent body to examine and evaluate Ireland's housing system, including issues such as tenure standards, sustainability, quality-of-life issues and the provision of housing. At the same time, I also tasked the commission to advise the Government on the critical factors to be considered regarding a referendum on housing and, if appropriate, to recommend a wording for a constitutional change. While not a commitment to a referendum on a right to housing this was not precluded from the commission's terms of reference.

The commission recently submitted its report and recommendations to me regarding the proposed constitutional amendment. In reaching its conclusions the commission examined the range of complex constitutional questions arising. I commend it on the work all its members have done and I know Deputy Ó Broin will join me in this. It undertook comprehensive consultation, researched international experience, evaluated various proposed wordings and considered other critical factors involved in introducing an amendment to the Constitution.

I am considering the commission's comprehensive analysis and report, together with the next steps in the process. I expect the next step will be to bring it to the Government and I expect to do so shortly. If it is agreed at Cabinet I will be looking at what the next steps are. I would see the Cathaoirleach of the Oireachtas joint committee and Deputies Ó Broin and McAuliffe, as members, also having a role in this. I expect in quite a short space of time to be able to bring the report and recommendations to Cabinet, along with my recommendations on where we go next in the process. I believe the joint committee will have an important role in this, and how we move it on from there is something that will have to be agreed with its members. It is significant and good work. I understand there could potentially also be a minority report coming but I want to move ahead with the report that I have. I will bring it to the Government shortly.

I join the Minister in commending the Housing Commission on its work on this. All the members of the joint committee are keen to see the report. While the Oireachtas joint committee will have an important role to play, I hope the Minister's intention is not to refer the report of the Housing Commission to our committee to get our advice back to the Government. It would be much better if the Government were to take a decision on this and produce legislation, and then our committee could have a role in the scrutiny of the draft referendum legislation. Not unlike the referral to our committee of the recommendations of the citizens' assembly on a directly elected mayor, some of us have a concern that such a procedure is more of a delaying tactic. The committee will have a role in scrutinising the legislation.

At this point in time, is the Minister in a position to give us any indication as to whether he hopes to proceed to propose the referendum or simply to refer the report from the Housing Commission to the committee, given the timelines of the local and European elections and the general election, which are fast approaching? Many of us are very keen to see the possibility of a referendum on this important issue next year.

I understand the point Deputy Ó Broin has made. First I must get a decision from the Government based on the recommendations that I will bring forward as to what the next steps are. I know the committee has engaged on this and it is important that the committee views the report. I do not believe that should take a great length of time either but the committee needs to consider what is in it. The next step is that I will bring it to Cabinet with my recommendations once I have finished reviewing it. Included in my recommendations will be what I believe the next steps should be. I would welcome input from interested Deputies in advance of this once a Government decision is made. The Oireachtas joint committee is made up of Members from throughout the House and people who have a particular interest in it and it needs to be involved. I know what the electoral cycle is as well. Next June we will have local and European elections. I cannot see it happening on that day, but who knows? I have to get a decision and approval from the Government as to the next steps and I intend to do this in the coming weeks.

I thank the Minister. I am aware there is the possibility of a minority report. This is very healthy and I welcome it. Concern has been expressed by some that there have been attempts to politically influence the work of the Housing Commission, not from the Minister or the Department but from the Taoiseach's office. There has also been some very concerning reports about possible litigation arising from the deliberations of the Housing Commission. Is the Minister aware of these issues? Has he spoken to the Taoiseach, Deputy Varadkar, about this or to anybody who may be considering legal action? While people are entitled to have a minority view, and a minority report would be very helpful, if there has been any attempt by the Taoiseach's office or his advisers to influence or interfere with the work of the committee, and if there has been any attempt to use threats of litigation to undermine its work, this would be most disappointing. I want to make it clear again that I know none of this is in any way coming from the Minister or his offices. Is he aware of them and can he comment on them? Will he tell us whether it is his intention to bring a memo on this issue to the Cabinet before Christmas?

I thank Deputy Ó Broin. If a minority report comes forward that is fine. It is a good thing and it shows that people are taking the matter seriously. The commissioners are drawn from all different walks of life and perspectives. It is a small number of members and the vast majority are in agreement with the report as it is.

I want to be clear that I have had no information on any type of attempt to influence the commission. I absolutely doubt this has happened. No one has said it to me. The Taoiseach has been very supportive of this process. The Taoiseach, the Tánaiste and the Minister, Deputy Eamon Ryan, were supportive of the establishment of the commission and are supportive of the work it is doing not only on the referendum but on the future of housing in Ireland. If Deputy Ó Broin has any information in that regard, he should bring it forward. Certainly, it has not been brought to my attention.