Eamon Scanlon (Fianna Fail)

I welcome the Minister of State to the House. As previous speakers have noted, everybody welcomes this Bill because we are all aware of people who have had bad experiences with regard to stage payments. In the 1980s and early 1990s, this was the only way to build a house. People found that difficult because they had to take out full mortgages as well as pay rent. I am glad the Minister of State has reached agreement with CIF on phasing out the stage payment system over the next nine months.

I was shocked to hear that the practice is as widespread as it is. I am not aware of it in the north west and apparently it occurs mostly in the south of Ireland. It should be phased out because it is not needed at this stage.

Reference was made to affordable houses built under Part V. All former councillors will be aware that this provision cannot be imposed on a site until the area has been zoned. Area plans have been drawn up for small towns and Part V will apply. Some 20% of these developments are designated for affordable housing and a substantial number of houses will become available in the next 18 months. Many affordable housing schemes are under way in Sligo and have proved popular. People who would not qualify for a full mortgage have been able to acquire a house.

The county council housing lists are inaccurate. One must be on the county council housing list in order to qualify for rent allowance. Many of those in receipt of rent allowance have no intention of occupying a county council house. They may be building or buying houses. Those who wish to qualify for an improvement in lieu, usually young couples or elderly people whose houses are in bad repair, must also be on the housing list. Perhaps a survey could be done to clarify this. Housing lists could be exaggerated by as much as 50%.

I raise the matter of shared ownership on any occasion I can. It has been a beneficial scheme, especially in the north west where one can buy a three bedroom semi-detached house for €170,000. Many couples and young families have purchased such houses, particularly in the past four or five years. Those who bought a house last year now have additional equity of €30,000. This would not have been possible without the shared ownership scheme. However, when one purchases a house under this scheme, the seller may not receive the money until three months after the contract is signed. There should be a system to draw up a contract between the county council and the seller. This would safeguard the property for the buyer. Many people lose out because the process takes too long. Today I dealt with a case that has dragged on for three months. While most sellers are decent people, some will resist selling in this case. I ask the Minister of State to request his officials to examine what can be done in this regard.

There were not many apartments in the north west until recently. Management companies are a necessary evil. Who else but a management company will be responsible for the upkeep of the outside of a building? People in Dublin are used to management companies and the system works well. Some have purchased property without realising that fees are payable to management companies. In some cases that may be €400 per year but nothing prevents this from increasing to €1,500 per year. The lack of controls on charges should be examined.