HOUSING/INFRASTRUCTURE:THE DEPARTMENT of the Environment claimed yesterday 7,000 homes could be provided this year for people in need of social housing despite an overall budget cut of €235 million, compared to the allocation made last October.
The social housing budget has been set at €1.078 billion, a €140 million reduction on the figure announced in last February’s “spending adjustments”, which was €95 million down on the €1.3 billion provision in the budget last October.
According to the department, 7,000 social housing units – similar to the number delivered last year – can still be delivered in 2009, with the aid of a new long-term leasing scheme, for which €20 million in funding has been allocated. This is expected to provide 2,000 units.
If these homes were built directly, the cost would be around €400 million. “Combined with an estimated completion rate of 5,000 social housing units by local authorities and voluntary housing schemes, this will bring the figure up to 7,000, despite the reduction in spending.”
An additional €20 million has been allocated for a retrofitting scheme for existing local authority homes to make them more energy efficient.
There has also been a further reduction of €15 million in the local government fund to €417 million, compared with last year’s provision of €548 million. This would come almost entirely from savings due to the pension levy and reduced travel and subsistence rates for staff.
The department noted local authorities would receive additional funding of at least €40 million through the new €200 levy on second homes. The net impact of cuts would also be offset by the retention of pension levies collected locally by local authorities.
The latest cut is additional to a reduction of €88 million in the local government fund announced in February to take account of the savings due to the pension levy introduced for all local authority staff. Local authorities will retain the full proceeds of the pension reduction.
The allocation for water services capital programme in the supplementary Budget has been set at €500 million, down from €560 million in the October budget. But the department said this was “still an increase on the 2008 outturn of €496 million”.
A spokesman said the reduced allocation would “enable good progress to be maintained on water services capital programmes”.
It is estimated that 40 major water schemes will be completed this year while continued work under the Rural Water Programme would see compliance with national drinking-water standards in group water schemes rise to 98 per cent, compared to 95 per cent in 2008.
The Construction Industry Federation (CIF) accused the Government of breaking its commitment to make infrastructure a priority.
The CIF said the Government had dismantled the public capital programme which would not stimulate the economy. This was depressing rather than stimulating the economy by winding down infrastructure spending “which had become a vital part of the economy,” Tom Parlon said.
Mr Parlon said the Government’s infrastructure spending plans “do not hold up to scrutiny,” claiming projects started this year would not exceed €500 million.
