Noel Ahern (Dublin North West, Fianna Fail)

I thank Deputy Ó Fearghaíl for raising this matter and I welcome the opportunity to outline the ongoing development of the voluntary housing sector and discuss the need to introduce a tenant purchase option. I know of the Deputy's interest and involvement in the voluntary sector and his deep commitment to it.

The provision of social housing by the sector is funded under two separate voluntary housing schemes, the capital assistance scheme providing special needs housing and the capital loan and subsidy scheme which provides family type accommodation. Approved bodies work in partnership with the relevant local authority in providing social rental accommodation. Support for the development of the voluntary and co-operative sector is being continued and this is reflected by the recently increased funding limits I announced and the new arrangements for the sector under consideration.

The capital loan and subsidy scheme is, for the most part, used to fund family type social housing. Rental income is used to defray the cost of management and maintenance and for the provision of a sinking fund to cater for more extensive refurbishment later in the lifetime of a project. Under the terms of the scheme, approved housing bodies are responsible for determining the rent payable by a tenant which is based on household and subsidiary income in the previous tax year. Approved bodies, however, have at their discretion flexibility to modify the application of the rents scheme.

Since the introduction of the capital loan and subsidy scheme in 1991 it has been considered that the sale of individual housing units could undermine the capacity and resources of voluntary housing bodies to manage and maintain their estates and continue to provide further housing projects to meet pressing needs. There are incentives for residents of more than one year's duration who wish to move on and become homeowners elsewhere, but this is not what the Deputy has in mind.

To have maximum impact and to make our housing policy more relevant, the Department published a policy framework document just before Christmas entitled Housing Policy Framework — Building Sustainable Communities. In that document it is proposed that consideration would be given, in consultation with the voluntary and co-operative sector, to pilot a tenant purchase scheme for some new voluntary homes under the scheme. As well as expanding the investment programme, the Government will implement a programme of reforms, aimed at improving service and ensuring that social housing is delivered in a way that is fair and efficient. The reforms, including bringing forward the necessary legislation, will involve implementation of a fair rents policy across all social housing tenures.

I have listened to the Deputy and have discussed the matter with him previously. We have brought forward our housing policy framework and are fleshing it out. Later this year we expect to announce a more detailed new housing policy. I have heard what the Deputy wants and suggests and other Members would like to see a tenant purchase scheme in the voluntary sector. We have announced we will do it on a pilot basis for some new schemes and are continuing discussions with the sector. I will examine the Deputy's request and see if we can move forward when we produce our policy document later in the year.

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