Noel Ahern (Dublin North West, Fianna Fail)

I will speak about housing figures, if the Senator so wishes. In making this difficult decision on the first-time buyer's grant we sought to ensure fair treatment by ensuring all approved and yet to be approved applications in the Department would, subject to the normal conditions of the scheme, qualify for the grant payment. In addition, those who have already made commitments in the form of signed contracts to purchase or build, or where they were building house themselves on which they had already poured the foundations by 14 November 2002 have been given an opportunity to apply for the grant. We did not include those who had paid booking deposits because they did not constitute a contract. In essence, booking deposits are specifically paid "subject to contract" and before a formal written contract is signed either party, vendor or buyer, is free legally to back out and the deposit should be returned. In providing for a grace period up to 4 December for those who had signed contracts or poured foundations before 14 November 2002 we were ensuring those first-time buyers at the most advanced stage of purchase would not be unfairly disadvantaged. It would be almost impossible to manage or control this if we had included those who paid booking deposits.

Similarly, we are also ensuring those on the lowest incomes, that is, households qualifying under the affordable housing scheme, are not disadvantaged by the abolition of grants. Again, the Department will honour any contracts entered into by local authorities prior to 14 November 2002 where the applicant has provided for a power of attorney in respect of the new house grant. This point was raised by Senator Kitt. The same applies where a local authority has issued a certificate of final approval in relation to a shared ownership application.

In addition, local authorities have been informed that the deposit under the scheme may be reduced from 5% of the house price to 3%, where appropriate, for all applicants who do not qualify for a first-time buyer's grant. The practise had developed in Dublin whereby the first-time buyer's grant was being treated by local authorities as part of the deposit. To compensate, the deposit is being reduced to 3% of the house price.

The Government has a strong commitment to respond to those in need of social housing and those with special needs. However, we have to target our resources wisely to meet this demand. In recent years a range of better targeted schemes to assist low income purchasers and those with social housing needs have been put in place. Between 1998 and 2001 the provision of social and affordable housing has grown by some 35% to 11,385 units and a further increase to almost 13,000 units is forecast in 2002. I accept that, although one houses 13,000 people, sadly, as many more join the waiting list.