Minister to outline benefits of building social housing

Labour’s Housing Minister Jan O’Sullivan is trying to convince her Cabinet colleagues of the jobs and economic potential that could be created if the Government was to start building social housing again.

In a speech at a conference on housing in Cork today, Ms O’Sullivan will outline the “social benefit and economic stimulus potential in modernising the public housing stock through new-build, regeneration and retrofitting”.

The Government, and the Labour Party in particular, has been coming under strong pressure from Sinn Féin over growing housing lists around the country and the failure of Nama to release property for social housing.

Capital spending on social housing in Ireland was cut by 72%, from €1.38bn to €390m, between 2008 and 2012, due to the dire exchequer finances.

Instead, those on housing lists are depending on housing associations such as Clúid and Respond, which are being forced to seek 70% funding from the Housing Finance Agency or the banks. The Government says it cannot afford to pay more than 30% of the cost of a home.

At the same time, local authority housing waiting lists have risen 75% between 2008 and 2011, from 56,249 to 98,318 nationwide.

However, at an Affordable Homes and Sustainable Housing conference organised by MEP Phil Prendergast, Ms O’Sullivan will reaffirm the Government’s commitment to providing housing to the needy.

“I want to state my commitment to the traditional role that local authorities have in direct housing construction and provision.

“While the unprecedented economic crisis has resulted in a substantial reduction in funding, I see that as a temporary situation. Local authorities have a central role in future public housing provision,” she said.