Jimmy Devins (Sligo-Leitrim, Fianna Fail)

However, there is no doubt that it has been difficult for some people, particularly first-time buyers, to get on the property ladder due to increasing prices. This difficulty has been present for some time and I commend the Government, which, recognising the difficulty, put in place measures to improve access to home ownership for first-time buyers. These measures include stamp duty concessions and improvements in mortgage interest tax relief.

As Members are aware, the first-time buyer's grant was abolished some time ago. The rationale for doing so was that the grant was simply being absorbed into house prices by builders and was contributing to the substantial rate of increase. I had doubts at the time about whether the grant should have been abolished and I remember some definite cases made known to me where the abolition of the grant was going to cause hardship. However, I believe overall that the rate of increase has stabilised considerably.

It is evident that the cost of house purchases is still very high. I meet many first-time buyers who find it difficult to afford new houses. The All-Party Committee on the Constitution, of which I am a member, recently presented a report to Government on property and the Constitution. During the course of those hearings on this important subject, a considerable degree of time was spent debating house prices and how the value of land and property affected people. The report contains important and worthwhile recommendations and I ask the Minister of State to consider with his Government colleagues how best these recommendations might be implemented.

There is no doubt that first-time buyers still have difficulty accessing housing on the open market, despite the stamp duty changes introduced in budget 2005 which made second-hand homes more affordable for first-time buyers by significantly reducing, and in some cases eliminating, the level of stamp duty payable.

I wish to speak about the provision of housing for those in society who are less well off. The provision of social housing and houses through the affordable housing schemes are the main methods for the State to fulfil its obligation for the supply of houses. It is worth noting that 3,500 housing units will be delivered by the various affordable housing schemes in this current year.

I thank the Minister of State with responsibility for housing, Deputy Noel Ahern, who yesterday agreed to make available an extra €500,000 to a specific housing scheme in Strandhill, County Sligo, which is to be built by the Respond housing agency. This extra money has been allocated to bring the total investment in that scheme to €4.5 million which will allow the scheme to start construction next January with a completion date 18 months later.

There will be 52 housing units available in Strandhill, one of the fastest growing locations in the Sligo area. The striking and beneficial aspect of the scheme is the broad mix of housing types available. It will contain two, three and four bedroom detached, terraced and bungalow houses. In addition it will contain a ten-bed housing unit. Such a wide mix of house type should ensure a broad range of family occupants. The applications for this scheme are already being made.

The overall budget in 2005 for social housing was a record high of €1.3 billion. Over recent years not all local authorities were able to take up the allocations made to them for the provision of housing. There are different reasons for the take-up by local authorities but the decision by the Minister for Finance to provide a capital envelope has ensured that councils which utilise their housing allocation will be in receipt of increased money the following year. This has removed uncertainty about funding and has encouraged local authorities to actively provide houses for people on their housing lists.

It has been estimated that it can take up to four years to see the construction of a house through from beginning to end, starting with the identification of the land through to completion of the house. Some local authorities had very small land banks available to them at a time when there was a rapidly increasing need for the provision of housing. In that regard I commend my own local authorities in both County Sligo and County Leitrim who this year were allocated €9.8 million in the case of County Sligo and €5 million in County Leitrim for their housing programmes. It is worth comparing those figures with the allocation given to them in 2004 when Sligo County Council only received €6.2 million. Likewise, Sligo Borough Council had an allocation last year of €6.3 million and this year there has been an increase to €7.8 million.

Last year saw 95 completions in my area. I urge all three local authorities to redouble their efforts to provide as many houses as possible during the current year. The Minister has indicated that the money is available. The people who need the houses exist, as the waiting lists indicate. We should marry both together and continue to provide the badly needed social housing in both counties Sligo and Leitrim.

Another aspect of the housing situation is the refurbishment of older local authority housing through the excellent remedial works scheme. In my home town of Sligo work is under way in both St. Joseph's Terrace and Garavogue Villas, with completion dates for both schemes early next year. There has been disruption for some tenants during the reconstruction with particularly severe disruption in St. Joseph's Terrace. My understanding is that those difficulties have now been resolved and I hope this is the case. The people living there are the innocent victims in this saga.

Other estates in Sligo town which will be undergoing refurbishment in the near future include St. Brigid's Terrace and Jinks Avenue. The closing date for receipt of tenders was last Monday. A total of 37 houses in St. Edward's Terrace will be ready to go to tender following the acceptance by Sligo Borough Council of Part 8 documentation at its next meeting in December. A total of 106 houses in Treacy Avenue have had details submitted to the Department last September concerning their refurbishment. I ask the Minister to ensure that his officials expedite this proposal as soon as possible so that these houses can be refurbished to standards appropriate to this century. Sligo Borough Council received a total capital allocation from the Department of €2 million this year to carry out these remedial works. This is money well spent and is an example of productive use of housing allocations.

Money is also available through the disabled person's grant and the emergency repairs grant for carrying out necessary house repairs. Last year, Sligo County Council received €250,000 and will receive €500,000 this year. Last year, Sligo Borough Council received €116,000 and will receive €700,000 this year. As all Members are aware, there have been significant increases in the number of applications under these schemes which serve a very useful purpose and are of great benefit to the elderly and those whose houses need essential repairs. There is a massive increase in the money available this year under these schemes. Sligo County Council will receive an increase of 100% and Sligo Borough Council will receive an increase of more than 600%. This demonstrates the responsiveness of the Government to the undoubted demand.

Housing is a basic right. I commend the Minister on the increased allocation to Leitrim County Council, Sligo County Council and Sligo Borough Council. I ask him to use his good offices to develop methods to ensure that the financial burden on first-time buyers continues to be alleviated.

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