Tom Fleming (Kerry South, Independent)

I welcome the Minister for the Environment, Heritage and Local Government, Deputy Phil Hogan. In the previous budget the then Minister of State with responsibility for housing and local services, Michael Finneran, announced the new tenant purchase scheme which was widely welcomed by local authorities and tenants' groups, offering more families around the county the opportunity to purchase their own home.

In February the Minister released details of the new scheme and in recent weeks local authorities have been publicising the scheme to their tenants. The new scheme provides long-standing tenants with the opportunity to buy their homes at a discount rate of up to 45% on market price, which as we are all aware is already much reduced. With the equivalent of the owner-occupier grant of approximately €4,000 the discount amounts to approximately 50%. The main details of the scheme are as follows. The maximum discount on market price will be 45% at a rate of 3% per year of tenancy up to 15 years maximum. The new scheme will apply to tenants of more than 15 years standing. All applications to purchase must be received by the relevant housing authority before the end of the current year and the purchase completed no later than 31 December 2012. This scheme offers possibilities for families and local authorities to benefit from the sale of local authority properties. The moneys generated from the scheme will stay with the local authorities and contribute to their funding. However, due to the lack of access to credit, many potential purchasers are being forced out of the market.

This scheme has really caught the imagination of tenants in my constituency in Kerry, as it has done around the country. However, the problem now is ensuring that people can avail of the scheme. I am calling on the Ministers with responsibility for the environment, housing and finance to consider the introduction of affordable credit lines specifically for those wishing to access this new scheme. They could, perhaps, work with financial institutions, banks, credit unions, and local authorities. I would welcome their comments on this.

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