Catherine Murphy (Kildare North, Independent) | Oireachtas source

I spoke last night about the housing assistance payment provision in this legislation and I will resume on that topic in a few minutes. I wish to speak briefly about some of the other elements of the legislation. I refer to the tenant purchase scheme by which over the years there has been large-scale selling of local authority housing. One scheme was referred to as the sale of the century because of the large number of houses offered for sale at very good rates which was very popular. However, the result is that housing stock is lost. The key issue is that the money from the sale of housing must be ring-fenced to fund the building of replacement housing. I ask the Minister of State to confirm that this is the intention.

I refer to the types of mortgages offered which have got some people into serious trouble in the past. I refer in particular to the shared ownership loan which is in effect a powder keg of a problem for many people because they will never be able to buy out the equity on the other side. It will be important to make provision in the legislation for the right type of mortgage.

I refer to the tenancy warning provision. There is no doubt that issues arise which need to be dealt with and that sanctions and consequences need to be put in place to deal with people who are presenting with anti-social behaviour problems and causing a nightmare situation for neighbours. Many of those involved are minors. I am not saying that people should be excluded from an estate because one of their children is getting into difficulties but we need to have a multi-agency approach to dealing with this problem and to nip it in the bud. Tenants who are moved out of a local authority estate will end up somewhere else and the problem moves with them. Such problems need to be confronted at a much earlier stage. However, I do not oppose this section of the Bill because the provision is needed as a consequence. There must be a limit on the mandatory deduction for HAP if arrears are owing, for example, to ensure tenants have sufficient money for living expenses. Many people would prefer this approach and they are worried about getting into difficulty. However, hardship can arise as a result of particular events occurring in their lives and a mandatory deduction may prove a difficulty in this situation. I hope additional supports will be provided for those finding themselves in that position of exceptional need. The community welfare officers have some discretion but that discretion has been limited.

As I said in my contribution last night, my big concern is the reliance on the private sector to deliver to the 90,000 people currently on the housing waiting list, with the expectation that this number will increase. It is accepted that there is a shortage of accommodation. The local authority staffing levels are uneven throughout the country. Private sector landlords will wish to engage with the local authority if difficulties arise with tenancies.

Inspections of homes will require additional resources to be provided to local authorities, some of which are already stretched. Local authorities found the rental accommodation scheme, RAS, which is similar to the housing accommodation payment scheme, very heavy in administration. This is one of the reasons the RAS did not attract a sufficient number of landlords to participate.

As I stated last night, most of the local authorities pay higher rents under the rental accommodation scheme than the Department of Social Protection pays for rent assistance. Given that councils are unable to acquire housing under the RAS, which pays landlords more than they will be paid under the housing accommodation payment scheme, will the Minister of State explain where the houses will come from? Will the local authorities perform magic or will additional funding be provided to meet current needs until new homes have been completed under a housing construction programme?

I telephoned a number of landlords in my locality to ask them to explain the reason the rental accommodation scheme is considered to be unattractive. The rent paid under the scheme is below the market rate. They stated, however, that the main issue was the hassle involved in dealing with the local authority. How will it be possible to reduce hassle for landlords if additional staff are not provided to local authorities that are already pushed to the pins of their collars?

As I indicated, the positive aspect of the Bill is that it will address the poverty trap in the rent supplement scheme. Will additional money be provided for the HAP scheme, which will come within the remit of the Minister for Public Expenditure and Reform, Deputy Brendan Howlin? Will the Department of the Environment, Community and Local Government allocate additional funding to local authorities to enable them to recruit staff specifically for the scheme? Will the Minister for Finance provide support for the construction of local authority houses? Notwithstanding the best intentions of the Minister of State, the HAP scheme will be an academic exercise as it is doomed to fail if additional supports are not provided. Major fault-lines have emerged even before the scheme commences. There are, for example, shortcomings in the structural and funding mechanisms in place to deliver the scheme.

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