Dáil debates

Tuesday, 4 December 2007

Adjournment Debate

Local Authority Housing.

9:00 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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The Minister for the Environment, Heritage and Local Government is fully aware that local authority tenants are treated differently according to the type of accommodation they occupy. A local authority tenant living in a house is able to engage in a tenant purchase scheme. Unfortunately, tenants who live in apartments have been prohibited for the past ten years from doing the same. During the lifetime of the previous Government, the legislative framework was promised but the delay in introducing it has meant that thousands of tenants across the country have been denied the right to buy their own homes. I raise this matter on the Adjournment to encourage some urgency on the part of the Department of the Environment, Heritage and Local Government in ensuring the anomaly is corrected.

For the past ten years, county and city managers have been ready to implement the scheme and there are no difficulties at local authority level. The legal difficulties to which the Minister referred when I questioned him on the issue in October were resolved as long ago as 2005, when a working group comprising Cork and Dublin city councils resolved legal difficulties such as sinking funds, freeholds and title holds and management companies. It is therefore disingenuous of the Minister to claim these problems are currently before the Attorney General.

The Minister's predecessor gave a commitment that the legislative framework would be put in place by 2005 at the latest. That has not happened. During the period from 1997 to 2007 in areas of my constituency such as Ballyphehan, Togher and Greenmount, and throughout the city, the price of property has increased by300%, interest rates have climbed and the age profile of those who wish to buy their homes has grown older. This has resulted in a situation in which many of those who have been denied to right to buy their homes no longer qualify for a mortgage because of the 20 year minimum mortgage period. People cannot buy their homes because of Government failure and delay.

Can a specific date be provided as to when the legislative framework will be put in place? The Minister has referred to the Social Housing (Miscellaneous Provisions) Bill as the means of resolving the matter. Can a ministerial order be passed to fast track this specific part of the legislation?

People all over Europe purchase their apartments and have done so for more than 100 years, yet it seems to be a major problem for local authority tenants in Ireland. One must ask where the priorities of this Government lie. We have seen tax incentives and major changes in planning legislation to facilitate developers in building houses and apartments but legislation to correct an obvious anomaly has been delayed from one Government to the next. The last commitment we were given was that the matter would be addressed by last summer. Given that the Minister's predecessor indicated in 2005 that the issue would be finalised during the lifetime of the last Government, it is unacceptable that we are approaching 2008 with the matter still outstanding. Unfortunately, the Government's track record leaves me with little confidence that a solution will be in place by this time next year.

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I thank Deputy Lynch for raising this matter, which gives me the opportunity on behalf of the Minister for the Environment, Heritage and Local Government to outline the plans to update housing legislation as part of a programme to reform the social housing sector.

On foot of proposals prepared by the Department of the Environment, Heritage and Local Government and approved by the Government, the Attorney General's Office is currently drafting a Housing (Miscellaneous Provisions) Bill to give effect to policy initiatives set out in the policy statement, Delivering Homes, Sustainable Communities, which was published last February. This statement builds on recent progress in providing social and affordable housing by setting out the fundamentals of the Government's vision for housing policy in the coming years.

The Bill will be designed to support the creation of a flexible and graduated system of housing supports for those in need of housing, improve customer choice in order to meet changing requirements over a person's lifetime and augment the powers of housing authorities while at the same time making clearer their responsibilities as social landlords and regulators of social housing generally. Thus, measures in the Bill will include a more developed legislative basis for the rental accommodation scheme, a revised tenant purchase scheme including the sale of local authority apartments to their tenants and revised powers for local authorities to combat anti-social behaviour.

As regards the sale of local authority apartments to tenants, previous efforts in this area were thwarted by the difficulties associated with the management of flat complexes, insurance, the cost of maintenance and the transfer of legal title. Taking account of proposals put forward by local authorities, arrangements are being devised to address these and other issues unique to local authority apartment sales. The establishment of fair, equitable and proportionate arrangements are needed to give tenant purchasers and the local authority a voice in the management of the apartment complex. The potential role of a management company representative of all apartment owners, including the local authority, in managing and maintaining the common areas and services in the complex must be considered. The need must also be considered for tenant purchasers to contribute through service charges to the ongoing maintenance of common areas and services. Arrangements must be made for sharing the costs of insurance covering the entire complex. Finally, a reserve fund will have to be created to pay for major improvement works required in the future.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Can the Minister of State provide a date for the legislative framework?

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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Considerable progress has been made in identifying and resolving the practical and legal difficulties associated with apartment sales. However, further work remains to be done. While the Minister is determined to ensure this work is completed as quickly as possible, he is equally determined that it is done right.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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The Minister of State did not answer my question.

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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A robust legislative framework must be delivered which will address the issues involved and stand the test of time for all stakeholders, that is, apartments buyers, apartment tenants who choose not to buy and local authorities.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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The message to this House is there is no date for those who wish to buy their homes.

The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Wednesday, 5 December 2007.