Cyprian Brady (Fianna Fail)

I welcome the Minister of State to the House and congratulate him on negotiating a fantastic package in the budget.

He mentioned some absolutely staggering figures in this regard and alluded to the multiannual funding arrangement being put in place, amounting to €6 billion over the next four years. Both the Opposition and Government have recognised that the solution to the housing deficit lies in increased supply. A number of measures have been taken in recent years to ensure that a sufficient number of houses comes on stream to deal with the deficit.

I welcome this Bill particularly because it affords a choice to those who are trying to buy a home and to local authority tenants. It also affords an opportunity to local authorities to roll over their housing stock much more quickly than they could otherwise do. They can improve the quality of the housing stock. This is just one of a range of measures to ensure that the supply is adequate.

Senator Browne mentioned Dublin. I particularly welcome the housing proposals affecting Dublin City Council. One such proposal is to allow local authority tenants in flats to purchase their properties. Certain issues that arise in this regard must be addressed, including those associated with maintenance and titles to the properties, but they can be worked out.

Some families in my constituency of Dublin Central have been living in complexes of flats for three or four generations. The present economic conditions are such that a couple who have raised their family are in a position to purchase an asset in which they have lived most of their lives. I would welcome any initiatives that could be taken in this area by Dublin City Council. I remember the Dublin millennium deal of 1988, which allowed tenants of Dublin Corporation to purchase their houses at a reasonable price. There was a very slow take-up of this scheme because many of the relevant details were unclear. Those who did take up the offer were extremely lucky and those who did not were kicking themselves some years later when property prices tripled and quadrupled over a short period.

When we examine the progress that has been made, particularly in local authority areas, we will realise that certain areas have changed completely in the past ten or 15 years. Some local authority estates had a name for antisocial behaviour but their reputations have improved. I congratulate Dublin City Council on its estate management policy, which has improved conditions so much that properties in many local authority estates are now highly sought after. These estates are settled areas with strong communities and have all the necessary facilities.

Such initiatives can lead to problems in some cases in that children of people who have a long established connection with an area and who want to buy their first property are not able to compete with other bidders because of high prices. Speculators are buying properties for rental purposes in what are ostensibly local authority estates.

In Dublin, particularly in the inner city, a considerable anomaly arises in that tenants in Dublin City Council developments are paying perhaps €30 to €50 per week for a flat while others, who are literally living within yards of these developments, are paying hundreds of euro per week to rent or buy private apartments. This must be addressed. This Bill will help to alleviate the problem because it will allow the private institutions to become more involved in the local authority areas. This can only be welcomed.

The aforementioned anomaly exists not only in Dublin but in most large villages, towns and cities, wherein settled communities that have been present in those locations for a long time, and which have all the necessary facilities, are outpriced because of the existence of new developments. I recall a survey that indicated that the average stay in an apartment in Dublin was two years. There should be a balanced approach to the regulations that pertain to these areas.

This legislation prevents unscrupulous tenants and speculators from making profits on the back of local authority investment, thus protecting taxpayers' money. When we consider the improvements in the standard of local authority housing, we will conclude that it is understandable that steps should be taken to protect investment. In this regard, I particularly congratulate Dublin City Council on its recent strides to improve its housing stock. The design of local authority housing and the materials used therein is top-class, particularly in accommodation for senior citizens.

Perhaps the Minister of State will consider examining the voluntary housing sector. Dublin City Council has worked very closely with voluntary organisations in this regard. Generally, there is no coverage for somebody buying back accommodation under a voluntary housing scheme. If Dublin City Council or a local authority is involved, there is such provision.

I welcome this legislation because it increase people's choices in respect of housing.