Seanad debates

Tuesday, 14 December 2004

Housing (Miscellaneous Provisions) Bill 2004: Second Stage.

 

7:00 pm

Photo of Paddy BurkePaddy Burke (Fine Gael)

If no more services are being provided, there are only five years left before the supply runs out.

I am delighted that the Minister of State clarified that supply and demand will dictate house prices. It took two Bacon reports to tell us how to reduce house prices. The Minister of State outlined how to do so in a few lines and stated that the Central Bank has predicted that an increase in supply will have a dampening effect on house prices. The Opposition has been saying this for years.

I wonder how productive the Bill will be in terms of claw-back. Some years ago, a Government introduced a scheme whereby tenants in local authority houses were given £5,000 to move out and obtain alternative housing. I do not know which Government was responsible but it may have been led by Fine Gael.

There should be an incentive for people to move on and better themselves. Under this system it seems the claw-back would be so great that it would be counterproductive and they will not move on. It would be a retrograde step to prevent people from moving on and improving themselves. Will the Minister of State clarify this point before making a final decision on it because many people who avail of the affordable housing find after a few years that they may be in a position to better themselves? Had they been able to afford to buy their house before then it would have appreciated so it would probably do them a disservice if the claw-back is too high. The claw-back should be flexible and should not prevent people from moving forward because if they do move on, an affordable house becomes available for somebody else whose need may be greater.

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