Eoin Ó Broin (Dublin Mid West, Sinn Fein) | Oireachtas source

My amendment in the group speaks to section 6 and the reference to open market dwelling, and that term is only fully explained in section 8. This is a significant innovation in the Bill that, from memory, I believe was not raised at the pre-legislative scrutiny phase or in the general scheme of the Bill. It is not clear what the Minister intends to do and my fear and that of Deputy O'Callaghan - we share an amendment - is that this would allow a local authority to use the serviced sites fund, or the affordable housing fund, as it will be called, for an individual to purchase a property on the open market and have the benefit of the serviced sites fund discount, although the local authority would seek to recoup that €50,000 if the property is sold. I understand the Minister is considering raising this to €100,000.

Questions arise immediately. I hope the Minister will clarify if that is the intention of that section, but if it is, what would be the price limitation on the purchase of the property? The serviced sites fund was originally intended as a funding stream for local authorities to offset local authorities' land and site servicing costs and their land costs would be historic rather than open market value. As a result, a house could be purchased for approximately €250,000 or less and the €50,000 from the service sites fund would be repaid to the local authority if the property was sold at a future point.

If we are saying the serviced sites fund or affordable housing fund can be used for an individual purchaser to get a subsidy from the local authority to purchase an open market price home, it is a complete change. I am not saying that I understand this completely and I am inviting the Minister to explain what he is trying to do with this. I have a clear view, which is that the serviced sites fund should be used in exactly the way it is being used at Boherboy and the Ó Cualann model and other areas, either for a local authority or a not-for-profit agent acting on behalf of a local authority in building homes to be sold at genuinely affordable rates.

I am, therefore, concerned about the implication of this section and I am keen for the Minister to elaborate on it, given that we did not have a chance to scrutinise this at pre-legislative stage.

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