Dáil debates

Wednesday, 10 October 2007

Priority Questions

Local Authority Housing.

1:00 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Question 92: To ask the Minister for the Environment, Heritage and Local Government when the legislative framework will be put in place to enable local authorities to be in a position to allow council tenants who live in apartments to be able to buy their home under a tenant purchase scheme. [22899/07]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The local authority tenant purchase scheme was first introduced on a national basis in 1973 and the scheme in its current form has been in operation since 1995. The current scheme allows tenants who have been resident in a local authority house for a minimum period of one year to apply to their local authority to either purchase the dwelling outright or acquire it by way of shared ownership. Initial eligibility for the scheme is also subject to purchasers not being in rent arrears.

Certain categories of dwellings, including older persons dwellings, maisonettes and flats or apartments, are excluded from the scheme. Local authorities also reserve the right to exclude certain houses from the scheme's remit for reasons of good estate management, structural condition or on the basis of proposals to carry out restorative work to the dwelling.

The Government's statement on housing policy, Delivering Homes, Sustaining Communities, published in February 2007, indicated that reforms are needed to the existing tenant purchase model to implement a more cost effective and equitable system, including the introduction of a scheme for the sale of local authority apartments to tenants under certain conditions and revised terms.

A social housing miscellaneous provisions Bill, currently being drafted, is expected to be published in early 2008. Work on addressing the complex legal issues relating to the tenant purchase of local authority apartments is being advanced in that context.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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This is not the answer I was expecting. My question very clearly asks when the legislative framework will be put in place. County and city managers across the country are prepared to move ahead with the scheme. The legal difficulties to which the Minister of State referred were worked out as far back as 2005. The city councils in both Dublin and Cork were part of a working group which considered topics such as sinking funds and the regulations on the freehold and title hold of selling these types of properties. The Minister in the previous Government gave a commitment as far back as 2005 that the legislative framework would be put in place in that period. What has happened in the ten years since 1997?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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A question, Deputy.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Can the Minister of State give a specific date regarding when the legislative framework will be put in place?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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We hope the Bill will be put in place in early 2008. There are very complex issues relating to it. The Government is committed to introducing changes in the tenant purchase system. We must also take account of the advice from the Office of the Attorney General. There are certain issues with which the officials from the Attorney General's office are not satisfied. Officials from my Department are engaged in consultation with the Attorney General's office on this issue and it is hoped that this measure, among others, will be introduced early in 2008. I cannot introduce a system that will be found wanting legally at the end of the day. We want to make absolutely sure that, when it is introduced, it will stand up in law.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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People buy apartments all over Europe, yet it seems they cannot buy an apartment from an Irish local authority. I would like to see the legal advice from the Office of the Attorney General, stating there is a blockage on this matter, and I ask the Minister of State to bring it before the House. In the meantime, property prices have risen by 300% while people are waiting. The tenants are getting older and they may not be able to secure a 20-year mortgage schedule. It would have to be this length if one is to pay off the mortgage by the age of 65.

Has the Minister of State considered putting in place a ministerial order that can fast-track this process while the legislative framework is being worked out? If there are problems with the Attorney General's office, there is a ministerial provision that would allow this to happen. Given that the Minister of State's predecessor indicated in 2005 that this issue would be finalised in the lifetime of that Government, it is completely unacceptable that we are now being told it will be finalised in 2008.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I want to ensure that I am not misquoted. The Office of the Attorney General is not causing a blockage. There are complex legal issues that must be overcome. It is incumbent on the Attorney General and on my Department to ensure that, when the legislation is introduced, it will stand up to scrutiny. We want to be absolutely certain that, when the legislation is introduced in 2008, it will be watertight.

The first issue the Minister, Deputy Gormley, raised with me was that he had committed himself to the introduction of this Bill. There is certainly no delay on our part. We are anxious to make progress, but we must be satisfied that all the legal complexities are addressed.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Will the Minister of State bring to the House the legal advice from the Attorney General which states there may be a difficulty with the Bill?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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That information is never published.