Barry Cowen (Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

3. To ask the Minister for Environment, Community and Local Government his plans to reform the conditions attached to the tenant purchase scheme for social housing; and if he will make a statement on the matter. [18787/16]

Barry Cowen (Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Notwithstanding the fact that we have a housing crisis and great difficulty in providing the units for those on the housing list, as alluded to by the previous speaker and many others on several occasions, there are ways, means and methods to provide units in the coming years. These include implementing the recommendations of the all-party special housing committee, the Minister of State's strategy, and the use of on- and off- balance-sheet funding. I have always believed, however, that those in long-term tenancies should, like anybody else in this country, have the right at least to aspire to own their own homes, hence the need for tenant purchase schemes. There was one announced by the previous Government towards the end of its lifetime but, unfortunately, it did not deal with the potential for people in Part V accommodation to purchase their units. We will produce a Bill on this issue in the coming days which I hope the Minister of State will support but there are other issues regarding social welfare recipients, age barriers and the commitment regarding the funds raised by local authorities to be retained by them for use in their local authority areas.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There are three incremental purchase schemes currently in operation for new and existing local authority houses and for local authority apartments. The new tenant purchase scheme for existing local authority houses, to which the Deputy refers, came into operation on 1 January 2016 and it is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum. All tenants of houses included in the scheme who meet the eligibility criteria can apply to purchase their houses, provided they are not disqualified from doing so under the provisions of the legislation.

In line with the commitment in the new programme for a partnership Government, we intend to undertake a review of the 2016 scheme following the first 12 months of operation. We will bring forward any changes to the terms and conditions of the scheme which are considered necessary based on the evidence gathered at that stage. Any relevant changes made to the 2016 scheme will, as appropriate, also be reflected in the other incremental purchase schemes. To be clear, we are open to suggested changes in that regard. The committee has recommended this as a priority area as well, and we accept and acknowledge that. The scheme has been up and running for nearly seven months at this stage. More than 73 applicants have gone through it. I agree with Deputy Cowen that it should be an aspiration for the majority of people who wish to, to avail of and eventually purchase their own home. It is something that we encourage and if we need to adjust the schemes and add more schemes, we are willing to consider and to do that. There is a commitment, as the Deputy knows, in the programme for a partnership Government that this money be reinvested to increase activity in this area so that there can be greater reinvestment in more council housing stock.

I also agree with the Deputy that we need to see whether we can expand the range of applicants who can qualify for the scheme. We must find a way to make it possible for a person with a long-term disability or who is on long-term disability benefits or allowances to aspire to owning his or her own home. We must find a solution to this because for a long time such people have been locked out of that option. I therefore fully agree with the Deputy that we should try, where possible, to make changes to the scheme. I am willing to work with the Deputy on that, together with others in this House who are genuinely concerned to do the right thing. It is something that we will work on in the months ahead.

Barry Cowen (Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for his answer. He mentioned that certain criteria are to be reviewed after 12 months, and the figure he has given of 73 applicants tells its own story. Clearly the criteria are not expansive enough to allow people the opportunity to take advantage of any such scheme, hence our bringing forward a Bill in the first instance regarding those who should have the opportunity to purchase Part V units, like anybody else has the opportunity to purchase local authority units because he or she is a tenant. No discrepancy should exist between the two.

I question the methodology behind waiting 12 months and I ask that the Minister of State set about informing his Department to carry out an immediate review and to refer back to us at the beginning of the next session of the Dáil. As I said to him, many people - for example, social welfare recipients - could take out a loan with a 60% reduction of the value of the house and they would be paying less in repayments than they would in the rent they are paying at present.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
Link to this: Individually | In context | Oireachtas source

I thank Deputy Cowen. We must go to the Minister of State.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I agree with Deputy Cowen. I would have thought more would have come forward too, but we are only in the first six months of the scheme. I will be honest with the Deputy in that not many people are knocking at my door saying the scheme does not suit them. On the face of it, it is quite a good scheme with quite generous discounts which are now based on a person's income, unlike the discounts in the past that were based on the number of years one was in the house. It is therefore a very good offer. We also must be conscious, however, that there is a shortage of housing stock at the moment so we do not necessarily want a big sale of stock. It is quite a generous tenant purchase scheme, which we can enhance as we improve our supply of housing stock, but I would have thought there would have been more applicants, even with the offer that is there. It is subject to ongoing review. The Deputy speaks of changing something today but it will take until January or February. I am prepared to work with the Deputy on it if he has ideas and solutions, but the scheme is quite generous. Even as it stands, I am surprised it is not working, but we will work on that. Deputy Cowen and I share the same goals.

Barry Cowen (Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Rather than wait the 12 months for the review, I ask the Minister of State to commence it immediately if possible. I further ask him to consider our proposed Bill this week which would seek to include Part V housing in the criteria, allowing those in Part V units the opportunity to purchase them. There should be no discrepancy, and I hope the Minister of State accepts that. I will put the other issues in writing to him with a view to his seeking to address them in the review, to be ready by January, as he rightly said. If it were published by then, I would be happy with that.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have not yet had the chance to review the Bill Fianna Fáil is bringing forward. Regarding Part V units, which I meant to address during the first part of my reply to the question, I do not necessarily agree with the Deputy's views. The Department has a very clear view on this as well, and it is a view I will share until someone convinces me otherwise or that we are wrong on this. The reason Part V units are excluded from the scheme is to ensure that units delivered under this mechanism will remain available for people in need of social housing support and that we get the mixed tenure we are trying to achieve. That is the logic of the Part V provision. I accept that perhaps there was a different logic when it was first brought in. I know there was also a lot of pressure at the Committee on Housing and Homelessness for Part V to be changed and reviewed, but it is the best way to generate a proper mixed tenure of housing in housing development. It is the right idea and the right scheme. There is a danger if one allows Part V houses to be sold off that the aims of the original Part V provision will be diminished, we will not achieve mixed tenure and we will be back to square one. I therefore disagree with the Deputy but I am willing to tease out the matter, as we all are. There is a genuine reason for its exclusion, but if the Deputy could convince me otherwise, I would change it.