Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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10. To ask the Minister for Environment, Community and Local Government when legislation underpinning the proposed incremental purchase scheme for existing local authority houses will be drafted, in view of the fact that there is currently no scheme available to tenants to purchase their local authority houses; and if he will make a statement on the matter. [20477/13]

Jan O'Sullivan (Limerick City, Labour)
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I propose to take Questions Nos. 10, 21 and 66 together.

While the 1995 tenant purchase scheme for existing local authority houses closed for new applications on 31 December 2012, two incremental purchase schemes, one for newly-built local authority houses and the other for local authority apartments, remain in operation. It is intended to advance the necessary legislative proposals as soon as practicable in order to underpin an incremental purchase scheme for existing local authority houses. Such a scheme will involve discounts for tenants which will be linked to household income and a discount-related charge on the property that will dwindle away over a period unless the house is resold or the purchaser fails to comply with conditions of the sale. The precise terms of the new scheme will be set out in regulations when the necessary legislation is enacted.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Will the Minister of State explain why there is a time lag? The tenant purchase scheme, which operated from 1995 until December of last year, was quite successful. It provided reasonable discounts for local authority tenants who wanted to purchase their own homes. The Minister of State was very vague regarding the context of when a new scheme will be established and she also did not indicate why there is a time lag between the end of the old scheme and the establishment of a new one. I am sure she is aware that many council tenants wish to purchase the homes in which they live. Obtaining council homes often acts as a stepping stone for those on lower incomes to eventually purchase their own homes. There is no good reason for the time lag to which I refer. Will the Minister of State clarify why it exists and will she be more specific as to when the relevant legislation will be brought forward and when the new scheme will be established?

I have been contacted about this matter by many people who live in the city. I stress that I am of the view that all of the moneys relating to any new scheme should be ring-fenced in order to provide new social housing. It should not be a case of running down the stock of social housing. If anything we desperately need a new social housing programme, particularly as the waiting time relating to some housing lists is now 12 years. Will the Minister of State answer the questions I have posed and indicate whether a new social housing programme designed to deal with the unsustainable waiting lists to which I refer will be put in place?

Jan O'Sullivan (Limerick City, Labour)
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I am very supportive of facilitating tenants in purchasing their houses or apartments. In 2010 we informed tenants that the 1995 scheme was going to be brought to a conclusion at the end of 2012. Quite an amount of notice was given. I am sure the Deputy will recall that we discussed the matter in the House. Everyone agreed that we should inform tenants that the scheme would be coming to an end and that if they were interested in tenant purchase, they should submit applications. I also informed the House at the time that we would allow one year - this year - for the processing of outstanding applications from the 1995 scheme. There was also a once-off scheme in 2011 under which tenants with up to 15 years tenancy could avail of a maximum discount of 45% of the selling price of their homes. We did, therefore, provide plenty of advance warning.

I want to bring forward the legislation as quickly as possible. As the Deputy is aware, a number of Bills relating to housing are in the offing. I refer to that which relates to the Residential Tenancies Board and that which may or may not be introduced this week and which deals with the setting of new rents. There will also be another housing Bill later in the year and I intend to bring it forward as quickly as possible. It is not the case that we wish to delay matters in any way. We want to facilitate people in purchasing their houses. As already stated, however, plenty of advance warning was given in respect of the previous scheme coming to an end. We asked those who were interested in purchasing to submit their applications before the end of last year.

Dessie Ellis (Dublin North West, Sinn Fein)
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The tenant purchase scheme was excellent. I availed of it myself only recently.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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So the Deputy is now a property owner.

Dessie Ellis (Dublin North West, Sinn Fein)
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Many people in local authority housing purchased their homes by means of this scheme. Everyone is concerned with regard to the stock of social and other housing stock. In the context of the incremental purchase scheme - the Minister of State referred to new houses in this regard - what is it proposed to do about people who have longer-running tenancies in older homes? The incremental purchase scheme documentation makes specific reference to new houses. Are we going to continue along similar lines to the old tenant purchase scheme? In the context of how the value of houses will be calculated under the incremental purchase scheme, it has been stated that the cost of building and the land will only be taken into account. I am not sure how this will work. The value of many houses has dropped considerably in recent times. A few years ago one would have paid €200,000 to €300,000 for houses in local authority schemes that would now be valued at under €100,000. Will the Minister of State elaborate further on what is going to happen?

Éamon Ó Cuív (Galway West, Fianna Fail)
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I have always been very supportive of tenant purchase schemes. When one considers the houses purchased under such schemes, one will see that they are always kept in very good order. These schemes encourage people to help themselves and to look after their properties. In view of all the cutbacks that have occurred, it is very difficult to ensure that local authority properties are maintained.

Why do local authorities refuse to advance loans to people who are on social welfare payments even in circumstances where the loan repayments would be lower than the amount they pay in rent? It is ridiculous that the less well off are caught in this poverty trap. Will the Minister of State indicate if tenants who have been in their homes for 20 or 25 years will, under the proposed new scheme she outlined, be able to purchase those homes cheaper than would have been the case under the 1995 scheme or the 2012 scheme?

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The Minister of State indicated that people were put on notice in 2010. I was not a Member of the House at that stage. The Minister of State has still not indicated why there is a time lag. The tenant purchase scheme was successful. As as been pointed out, giving people the right to buy their own local authority homes is obviously very good for them but in general it is also good for local authority areas because it gives those to whom I refer a stake in those areas. This is a positive, win-win situation. I do not, therefore, really understand the reason for the delay. If one were suspicious one might think that the Government is trying to wind down matters in respect of social housing altogether. I say this particularly against a background of there being no social housing programme, where the waiting times on the housing lists in my area are stretching out to ten or 12 years, where the only people who seem to be able to obtain houses are those who are given overall medical or some other form of priority and where normal applicants in places such as Dún Laoghaire are no longer being housed. Will the Minister of State explain the delay in bringing forward the legislation to create a new scheme? The old scheme was a success and there is no need for a break between the two.

Jan O'Sullivan (Limerick City, Labour)
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I must inform Deputy Ellis that it is the current scheme which relates to new houses. The scheme it is proposed to introduce will relate to old and new houses. Old houses will not be omitted from the new scheme.

Dessie Ellis (Dublin North West, Sinn Fein)
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That is not stated in the material which was circulated in respect of this matter.

Jan O'Sullivan (Limerick City, Labour)
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That relates to the current scheme, which involves new houses. We have work to do in the context of deciding how valuations will be deal with under the new scheme.

To address one of Deputy Ó Cuív's points, the payment system will centre more on income than the current scheme does. In the case of the latter, much depends on the length of time one has spent in a house. The income assessment model is fairer than the tenancy one. There is no conspiracy to stop people from purchasing their houses. I want to introduce this scheme as quickly as possible.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Where are the scheme and the houses?

Jan O'Sullivan (Limerick City, Labour)
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It is normal to allow one scheme to end before the next one starts. I do not want the gap to be long and I want to introduce the legislation as soon as I can. I do not see a reason for a conspiracy. Not permitting people to purchase their houses will not address the issue of waiting lists, as people are already in the houses. There is no reason not to facilitate them in purchasing their houses as soon as possible, which is my intention.

Éamon Ó Cuív (Galway West, Fianna Fail)
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What about the loan issue?

Jan O'Sullivan (Limerick City, Labour)
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I am sorry, but I did not catch that.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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No, we have gone over time.