Willie Penrose (Longford-Westmeath, Labour) | Oireachtas source

I thank the Minister of State for his reply. The problem, however, is the resource limitation by the Government and that is why the mortgage-to-rent scheme might not work. That is also why the mortgage-to-lease scheme might be a solution, not as an alternative but by operating in tandem with a mortgage-to-rent scheme. We would hope that, in time, many people in the mortgage-to-lease scheme may be able to repurchase their homes. They should be given a share in any price increase during the programme. For example, a couple might have a mortgage of €300,000 which they cannot pay, while the property is now only worth €100,000. If they agree to surrender their home and have the right to rent the property back at a controlled rent over seven years or more, in that time hopefully people's circumstances will improve. They can then exercise an option to repurchase the property at the current market price in seven years time at €200,000. The cost to those people would be €150,000 as the price increased by 50% during the programme.

The bottom line is that such people would then have a sustainable mortgage, which they could afford. They would not have to leave their homes. If they had to leave their homes, they would need social housing, yet we know there is a huge shortage of social housing throughout the country. For those who cannot afford the entire rent, there will be a rent supplement so the programme works for them also.

There are also people whose circumstances are so impaired that they cannot afford to rent at all, so they will need social housing. That is where the significant social housing programme, promised by the Minister, can play a role. The Labour Party has always played a role in the provision of social housing.

In the mortgage-to-lease programme, the new owners would create a social fund by leasing the properties to local authorities on long-term or perpetual leases. Local authorities can then house those people in their own homes. The new owners would get long-term, low-yielding returns backed by local authorities. There would be a huge demand for this scheme.

This week, Irish Government bonds were issued at negative equity, meaning that one has to pay the Irish State to have them take one's money. At this time of ultra low interest rates, there is a great opportunity to develop a massive public private social housing model. In time, this can be expanded. There has never been a better time to roll out a massive social housing programme nationwide.

If people's circumstances improve they should be given an opportunity to exit the social programme, pay their own rent and go on to re-acquire the property. It is about feeding into a positive cycle and accepting the universal truth that where people are given a real chance, they will step up to the plate and succeed.

For too long Irish families have had to bear the burdens of past mistakes made by others. Those self same families put their shoulders to the wheel during our darkest economic days and especially for the past seven years. Now is the time to give them a break so that they too can enjoy recovery and, by their own efforts, expand and enhance the recovery for the nation as a whole. Things can only grow when they are allowed to grow. We must give our people the opportunity to recover. That is our challenge. It is time to move on, be innovative and to recast and remodel those schemes, so as to ensure that the maximum number of people can avail of them. In that way, they can ensure the security of their own homes in an affordable way, so they will not have to be relocated. By way of rent or lease, they can thus continue seamlessly in the same environment where their children can attend school. It is good for society and the morale of those concerned. We must grasp this nettle once and for all in order to offer a solution. This is the last piece of the jigsaw that must be addressed so that people can be put on the road to sustainability.

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