NIHE Annual Conference, Kings Hall Conference Centre

Mr Chairman, Ladies and Gentleman, Conference Delegates, my thanks for your warm welcome and kind invitation to join you this morning at this your Annual Conference albeit not your usual venue nor your two day management conference, a sign of the changing times we live in.

The theme of your conference is looking to the future but also looking back at the last 40 years.  Given the very challenging times we face it is right that you should reflect on successes and also prepare for the future.

First of all, let me deal with looking back at these last 40 years.

Housing in Northern Ireland has often been an emotive issue. The views of the Belfast Telegraph, as recorded in an editorial in June 1968 were that:-

“Government would do well to consider a thorough inquiry into house allocation in the Province, probably the most touchy area of community relations”.

This therefore was an indication that in the summer of 1968, all was not well with the administration of housing in the Province; and so on 25 February 1971, new legislation introduced to Northern Ireland formed a watershed in the administration of housing in the Province.  The legislation; -  the Housing Executive Act 1971, created a new authority which was to address long standing housing problems and serve the people of Northern Ireland with professionalism and fairness.

The late 1960s had been a period of upheaval and protest at home and abroad.  The United States was embroiled in an ever costlier war in Vietnam.  Students from the Sorbonne fought pitched battles with police on the streets of Paris and, of course on the streets of Northern Ireland, violence soon followed.  The summer of 1969 witnessed riots in Belfast, Londonderry and other centres.  In August of that year the first troops arrived to help restore order.  The Troubles gave rise to an important process of reform and within this housing played a very prominent part.

So the 1960s gave way to the 70s and the 80s; winds of change were blowing across Northern Ireland and that change process would radically affect the administration of housing and all key public services and in February 1971 a new organisation was born — The Northern Ireland Housing Executive. This was of course against a backdrop of ever increasing violence throughout Northern Ireland.

The Housing Executive was therefore established by legislation introduced by the Stormont Parliament which became law on 25 February 1971.  This transferred to the Executive all the housing functions — and their dwellings — previously held by more than 60 local Government authorities and development agencies.  In a very short time the Executive was to become manager for about 180,000 homes across Northern Ireland ranging from high rise flats to remote rural cottages.

But the Troubles exacted a heavy toll on the Province’s housing situation.  An increasingly divided community led in time to increasingly segregated housing estates, particularly in Belfast.  Rent collectors were robbed of their monies on an almost daily basis, normal housing management became impossible as squatting became commonplace and by the beginning of 1973 squatters occupied over 5,000 NIHE homes throughout Northern Ireland.

The first Northern Ireland House Condition Survey conducted in 1974, painted a very bleak picture.  In overall terms the survey found that almost one fifth of all houses in Northern Ireland were in a very poor condition and unfit for occupation.  A housing crisis on such a scale clearly needed a major response and a full scale offensive was required, spearheaded by a massive new build programme.  But if building houses was one thing making sure they were allocated to those in need was entirely another issue and in 1974 an entirely new and fair allocations procedure — the Housing Selection Scheme was introduced.  That the Selection Scheme has endured for four decades is surely a reflection of its success.

A decade which opened with the birth of the Housing Executive closed therefore on a record of sound progress.

The Housing Policy Review of 1996 repositioned the Housing Executive as a strategic intelligence based authority and new roles needed to be reinvented and rediscovered.

But there were some easier moments for the hard pushed staff in the Housing Centre.  I wonder if in the audience there is a member of staff who took the calls for tenants complaining that:-

I could go on at great length about progress through the decades but I am certain you would rather hear about what is to happen in the next couple of years never mind the next couple of decades.

On 11 October 2010, the then Department for Social Development Minister, Alex Attwood, announced to the Assembly that a fundamental review of the NI Housing Executive was being commissioned.  

Due to the evolution of the role of the Housing Executive it was essential that this review was undertaken by personnel that had the required skills and knowledge of conducting large scale organisational reviews.  Central Procurement Directorate undertook the quest to seek experienced consultancy and the tender was subsequently awarded to PricewaterhouseCoopers who were appointed late in December 2010 and began work in early January 2011.

The Terms of Reference set for this fundamental review were quite specific:-

“The Review will examine the housing and all functions of the Northern Ireland Housing Executive in detail, providing a comprehensive assessment of their contribution to housing and other Departmental and Government policy objectives.  This will take account of other organisational structures in the housing policy sector and make recommendations about remit, role and responsibility to achieve best results.  It will consider reports into Housing in Northern Ireland produced over the last three years.  

The Review will also examine the efficiency and effectiveness of the Northern Ireland Housing Executive’s operations, including the appropriateness of existing structures.  It will identify opportunities and make recommendations for improving performance and delivery of housing policy and objectives.”  

PwC adopted a very inclusive and collaborative approach to seek views from a wide variety of key stakeholders from throughout the Housing movement.  A very important part of this process was the discussions led by PwC with your Chairman and Board members and the NIHE Senior Management Team.  

PwC then led a series of workshops which involved senior personnel from PWC with detailed knowledge of Housing, your Chair and Vice Chair and Senior Management Teams from within the Executive and the Department.  The workshops took place in February and March 2011. This was a very valuable exercise and was used as a forum to discuss and agree a range of possible options for consideration and analysis.  The outcomes of the workshops and the data supplied by NIHE were fed directly into the final PwC considerations.  

The final NIHE Review report completed by PwC which has been entitled “Appraisal of Options for future service delivery” was submitted to me on 27 June 11.  I also made the NIHE Review report available to the Social Development Committee for their consideration.  

At this point it is very important to remember that the objective of the fundamental Review was to identify a sustainable high-level service delivery model to meet the challenges that face the Housing Executive in its strategic and landlord roles and to make it fit for purpose for the next two decades.  

PwC acknowledged and paid credit to the proud successful delivery record of the NIHE since it was set up 40 years ago; but also acknowledged that the current NIHE delivery model and structures no longer allow optimal delivery of either the strategic or landlord services and it was time for change.

This is where I came into this process. Having not been here at the start of this review, I suppose I can take a step back and study the independent report very carefully.   The PwC report sets out a vision for change with an acknowledgement that there is no absolute” right answer”.  PwC have provided a number of suggested solutions to the challenges facing us including a number of recommendations which they state should be subject to “a mature conversation” to help decide on a new optimum service delivery model.  

To help inform my final decisions on the way forward, I decided that the report, its recommendations and any issues identified should be given full consideration by all those key stakeholders who were involved not only in the initial workshops but also those others with an involvement in the Housing Sector.  

To facilitate this and maintain the independency of PwCs recommendations I commissioned the report’s authors to take forward a series of engagement meetings on their findings and seek views on the recommendations.  PwC have, therefore, held further meetings with the Board of the Housing Executive, the Social Development Committee, the Housing Council, NIFHA & Housing Associations, NIPSA, Potential Funders, Tenant Reps, Construction Employers Federation, Housing Rights Service and relevant Academics.  These meetings which commenced in August were held in locations across the province including three open forum sessions in locations in North West, Dungannon and Belfast.

PwC are due to complete the engagement process in the next week or so and then provide me with feedback.   I intend to take account of the comments expressed by and to PwC throughout the Key stakeholder process to help me to arrive at the best solutions for the delivery and management of social housing and in this respect I need also to look at Housing Associations so that the whole of the housing sector is addressed, but there will be more on this at a later time.  This fundamental review, at this time therefore, addresses the Housing Executive and has to include taking careful consideration of the needs of tenants, of course you the staff and the responsibility I have to taxpayers.  I need to be in a position to provide practical solutions to ensure the sustainable delivery of an acceptable standard of social housing for at least the next two decades and this should be at the core of any new service delivery model.

I hope to be in a position to make an announcement on my decision before Christmas.

 

Thank you