NIFA Annual Conference 2008 - 14 November 2008

Good morning Ladies and Gentlemen.  I’m very pleased to be able to join you today at your annual general conference and to talk to you about my New Housing Agenda.

It’s an area of work that I feel lends itself to the discussion theme of today’s event: Making the Connections.  Because the New Housing Agenda brings together not just distinct strands of work but also a number of different delivery partners from the housing family to deliver on my priority in the Department for Social Development – and that is to give everyone in Northern Ireland the opportunity to live in a decent, warm home that is affordable to them.

When I launched the New Housing Agenda earlier this year, I knew I was setting challenges that would connect us all and that would only be delivered through the energetic cooperation of everyone involved.  

I couldn’t have predicted, however, the extraordinary economic climate in which I would be delivering this agenda.  The endless headlines on the spreading financial crisis have only recently lost some ground in our newspapers, as the world pauses to welcome Barack Obama as President Elect of the United States of America.  

I hope the extraordinary actions taken over last month by various governments will begin to ease today’s difficult financial climate.  But I have no need to remind you that the credit crunch and high food and fuel prices are still with us and may remain for some time to come.  

All this galvanises me to deliver a programme of housing reform that I believe with bring tangible change to the people of Northern Ireland: aiming to protect in the coming year, those at risk of fuel poverty and perhaps of losing their homes; over the next three years, building 5,250 new homes; and delivering an efficient and sustainable housing strategy at a time when the value for money agenda has never been more relevant.  

And central to all of this is the principle of a shared future – I want to provide housing options that bring people together, not keep them apart.  

This New Housing Agenda will build on the progress made during my first year as Housing Minister, where we began work on 1,595 new homes – nearly 100 above the target! – I’d like to take the opportunity to thank you personally for your help in meeting and exceeding target.

I know the new target to deliver a further 5,250 new homes over the next 3 years is challenging but - and I must emphasis this – it is not negotiable.  I truly believe that, by working together and “making the right connections”, we will bring these homes to the people who need them most.

We must not forget that, although we often talk in terms of targets and numbers, this work is really about delivering homes for people – our people.  Day and daily in my constituency I am approached by people who have difficulties in their lives, particularly in these hard financial times; they need help and assistance and there can be no better way of assisting them than ensuring  they have a decent, warm home in which to live and raise their family.

I’ve mentioned already that in these belt-tightening times, with constraints on public expenditure, the value for money agenda is as relevant as it ever was.  We must think innovatively and find ways to get more quality and quantity for our money.  

I want to make the public purse stretch further, and my new Procurement Strategy is a good example.  

The Strategy will streamline housing association procurement activity into four dedicated procurement groups.  By bringing housing associations together in a more structured and coherent operation and by pooling their experience, expertise and purchasing power, I believe we can make savings of up to 10%, over the next 5 year period, all of which will go back into the Social Housing Programme.

Trowers and Hamlins will guide our new Procurement Groups through the entire process.  They have extensive experience of social housing procurement from their work in Great Britain and by the end of the five year strategy, I expect all Procurement Groups to be fully compliant in public procurement policy.  It is good to see them here today and I have no doubt you will find their input helpful.

I also want to ensure that people have choices in accessing decent, warm, affordable homes and can make that first step onto the property ladder – if that is their choice – and ensure they are safe on that first rung.

The Co-Ownership Housing Association has secured an extra £35m of private funding from the Bank of Ireland to supplement the £15m that my Department provided at the beginning of the year.  This funding will ensure that the Co-Ownership Housing Association meets the Programme for Government’s target of 500 affordable houses this year.  And in fact, on 3 November Co-Ownership started accepting new applications.  

This loan represents a first step in a process that I hope will lead to a long term public/private financing strategy for Co-Ownership homes in 2009 and beyond.

I’m also actively looking for other ways to make Co-Ownership more effective.  I’ve set up a working group to consider new models for co-ownership and potential changes to the entry level and buy out steps to make co-ownership easier to access.  I expect to bring these forward proposals for consultation later this year, with any changes coming into operation from 1 April next year.

In September I launched another innovative scheme in Portadown – the “Own a Home” initiative.  Again, this scheme – a partnership between Turkington's, Clanmil and South Ulster Housing Associations, and Barclays Bank – relies on us “making the right connections”.    A first in Great Britain and Ireland, it allows first time buyers to get on the housing ladder by taking a part equity share in a house without the burden of a large deposit.  In the future, I hope to see similar schemes rolled out in other parts of the North.

We also need to find innovative housing solutions, particularly in an increasingly challenging market, to increase the supply of housing – considering, for example, a developer contribution.  The Environment Minister and I have agreed in principle that developer contributions should be introduced.  Legal responsibility for the amendment of Planning Policy Statement 12, which would allow us to obtain developers contributions for social housing, rests with the Department of the Environment.  I recently met Environment Minister Wilson, to press for amendment to be made.   Timing is dependent on progress being made on revisions to Planning Policy Statement 14, which has been with the Executive Committee for approval since June 2008.  

I am confident that, when operational, developer contributions will provide more affordable homes and will combine with the streams of work such as Co-ownership to help more people to get onto the housing ladder.

I mentioned earlier that I want to do all I can in the Department for Social Development to protect those put at risk by the pressures of today’s difficult economic climate.  The combined weakening of the housing market and the credit squeeze is creating difficulties for home owners – you may be aware that in the second quarter of this year the Courts Service reported a further increase in applications for repossession with over 900 applications being made. Unfortunately, I don’t expect the figures published by the Courts Service tomorrow to bring any better news.

I can’t stand idly by and watch people that could have been helped face the trauma of repossession.  That’s why I also intend to introduce a Mortgage Rescue scheme to help those facing repossession.    The consultation on my proposals, which outline possible solutions for those facing repossession, is well underway and the closing date for responses is 21 November.  In the mean time, I am continuing to seek the resources to allow me to operate this important Scheme.  

Fuel poverty is another mounting problem for many households and very high on my Ministerial agenda.   I want to make sure that people can afford to heat their homes this winter and, where action requires cross-departmental commitment, I look to my Executive colleagues to help me do so.  

The Warm Homes Scheme is a central element in Government’s Fuel Poverty Strategy.  It aims to improve domestic energy efficiency and so reduce energy consumption in eligible households in the owner-occupied and private rented sector.  The Scheme has already helped over 60,000 households in Northern Ireland. And this year I have instructed Eaga, who manage the Scheme on behalf of the Department for Social Development, to aggressively target those most in need – those with no central heating, for example.

I have also indicated my intention to press ahead with my recommendations for tackling Fuel Poverty – particularly those short term recommendations that could assist people in need this winter.  

I circulated a draft paper, based on the recommendations of the Fuel Poverty Taskforce, to my Executive colleagues prior to the scheduled Executive meeting on 18 September.  Unfortunately that meeting did not take place; however, I received responses from a number of Ministers and had discussions with the Minister of Finance and Personnel and the Minister for Health, who recognised the importance of the proposals.  I have taken account of the views of Ministers and produced a final Executive paper which I have now sought clearance for via the urgent procedure route.

It’s very disappointing that I have not had a response from Office of First Minister and deputy First Minister – even under the urgent procedure.  This is worrying, as the work needs to begin now to ensure help is in place for vulnerable householders this winter.  I cannot construct a suitable scheme without Executive clearance.

I’m not going to get involved in assigning blame for the Executive deadlock – it simply needs to meet – but I’d like to be very clear today that my priority in the Department for Social Development is providing help and support to those put at risk by today’s difficult economic climate.  

Ladies and gentlemen, since becoming Minister for Social Development, I have given a consistent message.   I’m sure all of you present today have heard me say it before, but I make no apologies for restating that everyone should have the opportunity to live in a decent, warm home that is affordable to them. And the current economic climate certainly throws into relief the seriousness and value of that objective.  

Now more than ever, we need to focus our efforts on alleviating the housing crisis.  

Before I finish, I’d like, once again, to take this opportunity to thank you for your continuing support in delivering that objective and in particular for your meeting with the Minister for Finance and Personnel to call for a greater public spend on social housing in the next budget

Thank you.