John Gormley (Dublin South East, Green Party)

I thank the Leas-Cheann Comhairle for allowing me to speak on this important issue which has been raised continually by my constituents. I thank also the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Noel Ahern, for being present to take this matter.

The Minister of State will agree that our constituents have heard much about the tenant purchase scheme and have also been promised by the local authority and the Government that this issue would be dealt with quickly. They have had promises also in regard to the continuing problem of anti-social behaviour. My constituents would like answers to the many questions they have raised. They would like clarity on these issues and, above all else, they would like some degree of certainty about their future.

The original tenant purchase scheme for flats was introduced in 1988 but was withdrawn in 1992 by the then Department of the Environment. This move, which was supported by Dublin City Council, led to a great deal of dissatisfaction among local authority tenants. Many who planned to buy their dwelling found they could not do so.

When I was Lord Mayor, some of my constituents contacted me and asked if it was possible to mount a court challenge. Subsequently, they contacted a Cork solicitor, David Guilfoyle, and legal action was threatened. This may have led to the change in attitude of the Government and the local authorities. What we know is that the housing position has changed considerably since 1992. According to Mr. Brendan Kenny of Dublin City Council, the Department of the Environment, Heritage and Local Government has recently indicated that a national scheme for the sale of flats would be introduced from January 2007. While addressing Dublin City Council, Mr. Kenny urged councillors to support the proposal and called on them to lobby in the coming months to influence the make-up of the scheme. He emphasised, however, that ultimately this was a matter for the Department of the Environment, Heritage and Local Government.

I wish to alert the Minister of State to a number of concerns which have been raised by my constituents. If these flats are sold at market prices, many living in Dublin City Council flat complexes will not be able to afford them. It should be clear to most at this stage that the housing market has spiralled out of control. A small cottage in Ringsend can be sold for €450,000, an outlandish price, and way beyond the means of many local people. A three-bedroom flat will soon cost in the region of €500,000. How can my constituents afford that amount of money?

It has been suggested that the price of the properties should be based on the value set in 1988. The Minister of State met the residents' committee of O'Rahilly House on 22 February 2006. When they put forward the proposal that they should purchase at the 1988 prices, the Minister of State dismissed that idea. I ask him to reconsider the issue because, clearly, my constituents cannot afford those prices.

A good suggestion has been made — though I do not know if it would be possible — that some assistance has to be given to tenants if they are to afford these flats. The funds raised from the sale of the scheme should be ring-fenced for local housing and amenities. Before any such scheme is initiated, a detailed audit of all the necessary remedial works should be carried out. We need to look at the financial implications. What happens if certain tenant purchasers cannot keep up with payments or pay the new service charges? These and other concerns have been raised by tenants and local councillors who are aware of the problems on the ground.

There are other concerns surrounding flat complexes. Many of them were built in an era when they did not have the value they have nowadays. The scarcity of space in the city has resulted in inflated prices being paid for properties not far from flat complexes. One can instance, for example, the incredible price paid recently for the Berkeley Court Hotel site. Only high-rise, high-density dwellings will be sufficient to recoup that investment. Similarly, many private investors could buy the local authority complexes thinking that a killing can be made on the available space. One builds between the blocks and one builds up. This could result in some fine developments with good facilities for our tenants. It could very well be a win-win situation, but naturally local authority tenants want to know what is involved. That is why I am calling on the Minister for State to consult first the local authorities and in this instance Dublin City Council. It is essential that the council fully consults its tenants to establish what is in their best interests.

The entire focus must be on the best interests of our tenants and not on what is in the best interests of the speculators. For example, consultation on design could help deal with some of the anti-social problems now evident in our flat complexes. The promised legislation in the programme for Government states it will deal with this problem. To find a solution to the problems of anti-social behaviour, one needs to talk to the tenants and the councillors who deal with it first hand.

Many of our tenants have been model tenants, paying for years, and I ask the Minister of State to treat them with dignity and fairness.

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