- Last year HE sales receipts were £9m of which the Department of Social Development (DSD) got £2.5m. What formula did the Department of Finance (DFP) use to arrive at this figure?
- We have discussed this matter with the HE Chief Executive. From 1994 out of £77.8m house sales receipts, DSD has received £25.4m. The general rule under the SPED scheme is that the HE can retain all of its estimated receipts but that additional monies gained have to be surrendered to the central block from which DSD can bid.
- You mentioned a substantial reduction of £30m in urban regeneration funding: what areas will be affected? In relation the figures for the Department's administration cost, there seems to be a discrepancy between the social security overheads (3.5%) and the rest of the Department (7.5%). Is there an explanation?
- Reductions in the order of 25% on baseline allocations for urban regeneration came in 1996 as part of the Comprehensive Spending Review. However, next year's funding for urban regeneration is estimated to be broadly in line with this year; and the disparity in the plan's figures is attributable to a technical accounting method and European monies yet to be released from the centre, rather than a reduction in spend.
- Could additional funds be found from SPED as a result of an improved security situation?
- Under the SPED scheme Departments can approach DFP as part of its in-year monitoring function to retrieve more from the centre. There is the possibility of flare-ups but with a settled security period there may be scope for finding more resources. However, in such a scenario there may well be a change to the baseline funding to take account of the corresponding reduction in security expenditure.
- Last year the DSD spent £20m out of its housing budget on home adaptations: is this expenditure not more a health matter and if so could resources be recouped there?
- And waiting times for assessments for necessary work are intolerable. The Department will be meeting urgently with the HE and Health Dept. to address this area fundamentally.
- Some areas have introduced self-assessments for adaptations: perhaps this could be extended. There does not seem to have been a proportionate spend on regeneration in large towns in comparison with the cities -for example, Laganside has received a huge investment. The HE has sold 80,000 homes in the last 20 years and now only 135,000 houses left. Given that NI has now about 70% home ownership, are we approaching the optimum figure with the result that the capital receipts well could soon run dry?
- The view on adaptations will be fed into the review. The process clearly must be quickened and any streamlining is to be welcomed.
The funding of Laganside is accepted but that project has a most impressive record of levering in substantial European and private sector finance. There has been a fragmented approach to funding regeneration programmes, which has concentrated heretofore on physical regeneration and properties etc. I want to look at NI as a unit and target areas using objective criteria. The Committee's views are most welcome in the drive to find the right balance.
The Minister will investigate the projected fall-off in HE house sales and reply to the Committee.
- Levels of housing unfitness in the rural sector are a problem: is this a priority for the Minister? There is also a massive demand for social housing in North Belfast (1000 needed in the next five years). Is there any development on the allocation of land in Belfast at the Girdwood site and Crumlin Road jail site?
- Levels of housing unfitness in NI have fallen to an average of 2.4% in 1996, but rural areas remain a real problem that must be addressed. The HE intends to do so in its forthcoming works programme. There also may be help by way of a change in the housing legislation by moving from a mandatory grants system to a discretionary one.
The position with the Girdwood site will be checked. As regards the Crumlin Road jail site a process is already underway to look at its future development: before seeking bids, the Belfast Regeneration Office has set up a steering group including local representatives. The HE is well aware of the housing needs of North and West Belfast and accepts the need for new build numbers. It is actively seeking out areas but there are physical constraints such as peacelines and limited space available. Funds also have to be directed to tackle housing unfitness issues. The HE has commissioned a sectoral study in North Belfast to investigate housing need.
- How much land is available for development to the back of the jail?
- The Department will respond later with the full details.
- You mentioned earlier that DFP could move the crossbar to lower the baseline in terms of the budget allocations: could this also apply to HE adaptations?
- Such movements are always a factor when dealing with limited resources but I will probe these areas to ensure the maximum resources possible are obtained for the housing programme.
- I am concerned at the tardiness in the implementation of the Housing Selection Scheme: any comment? Are we not almost getting social housing free if Government loans charges are excluded? Is there scope for the private sector to become more fully involved in the development of social housing?
- It is easy to dismiss loan charges but they are a part of the cost. Also, 70% of HE tenants are on Housing Benefit, which is also a major cost.
The Housing Selection Scheme is on target to go live on 1 November 2000. It will provide a common scheme for all social housing.
- Will your Dept. issue a common set of criteria for Targeting Social Need (TSN) as at present different Departments use different methods to measure social need?
- TSN is a complex principle and, in recognition of this, each Department has been tasked with bringing forward an action plan by June 2000. The Robson indicator has attracted criticism but the Dept. is working to develop a better system. The Dept of Economic Development uses unemployment as an indicator but this masks the true picture of benefit recipients such as pensioners and the disabled.
- How much does the Dept. receive from the International Fund for Ireland; and if this is paid in euros, the current strength of sterling will have an adverse impact: comment? Does the sale or non-sale of the Port of Belfast have spending implications for the DSD?
- IFI payments are £7m for both this year and next.
The proposed sale of the Belfast Harbour was to bring £5m to housing but this has been deferred until a decision is reached, which has had the effect of delaying maintenance work.
- You spoke of house sales to the elderly. At the time they were first introduced, not everyone was fully informed: can those who lost out have their cases backdated to the original date? Does the Housing Selection Scheme need Assembly approval? The lack of funding for housing in Derry has reached nearly crisis proportions; people are on waiting lists for more than a year.
- The sale of houses to the over-60s is a complex area among a raft of issues being looked at by the Department; the general rule was that those who were allocated a house when they were over 60 could not later buy the house.
The Assembly does not need to approve the Housing Selection Scheme.
Housing needs and funding were referred to earlier. This year some £35m of private finance will be levered by the Housing Associations in new build, with a further £49m next year.
- Does the Minister expect an early announcement on the commencement of Urban Development Grants?
- The Minister will look into this matter and advise accordingly.
- Are figures available for housing waiting lists in North Belfast's interface areas and is the HE responding to these needs? Are there any plans by the HE to move peacelines?
- The HE can provide the figures down to District level. As stated earlier, the HE is conducting a sectoral study in North Belfast on housing needs, but it is not responsible for delivering the movement of peace walls.
Social Development Minutes 27 January 2000