Minister for the Environment Alan Kelly is bidding for €250 million in the budget to go towards a social housing programme, according to Coalition sources.

Mr Kelly has made his pitch as the bilateral meetings between Ministers and Minister for Public Expenditure Brendan Howlin are due to begin shortly, with preparatory talks between officials already taking place.

The Government had identified social housing as a priority for the remainder of its term in office, and Mr Kelly spoke in the Dáil on the issue last night.

The Minister said a social housing strategy is currently being developed and that it was “clear that present and future solutions must be found which will harness new funding streams”.

“The strategy will set out a series of actions to compensate for the short- to medium-term shortage of supply and I look forward to working with my colleagues in Government in achieving the significant exchequer investment needed,” Mr Kelly added.

Supply issues

“Given supply issues in some areas, reliance on the private rental sector to meet housing need is not sustainable, and the Government accepts that the delivery of significant new build is required.

“Increasing public housing stock will have the additional benefit of alleviating pressure on the private market in terms of rents and purchase prices.”

While the Minister did not outline any figures to the Dáil, sources said he has requested €250 million for social housing, although it is not clear if this is entirely intended to come from direct exchequer funding.

Minster for Finance Michael Noonan told the Dáil yesterday that Nama had already identified 4,000 properties for social housing, adding that while the direct provision of housing is an option, it requires finance.

“At this time of year Ministers are involved in negotiating estimates for their departments,” Mr Noonan said. “When departmental budgets are set announcements will be made on all problems.”

Water tax relief

Meanwhile, Siptu president Jack O’Connor has called for a significant water tax relief – of as much as €240 – to be included in the budget to help lower income earners.

Mr O'Connor has written to all Labour Party TDs and Senators outlining his position, claiming a water tax credit would be fairer than cuts in the rates of income tax or the universal social charge.

“People would get a tax credit of an amount of money equivalent to the cost of the average water requirement of a household,” Mr O’Connor said, adding social welfare recipients would get the same amount. “This could be introduced in such a manner as to offset the total cost of every person’s normal household and domestic needs for less than €350 million per annum”, he said.

However, while the idea of water credits for lower income earners has surfaced in recent days, a senior Coalition source said tax and water charges are two completely separate issues. “The focus is on ensuring the average household bill [of €240] is met for now, plus Household Benefits Package extra for 411,000 people,” the source said.