Eamon Scanlon (Fianna Fail)

I welcome the Minister of State and I am glad to have the opportunity to speak on this issue. I recognise what the Government has done, especially in my county of Sligo which has received over €9.5 million for the building and purchase of new homes for people. That is a 100% increase over a few short years. However, there are problems and issues.

I wish to raise an issue which bothers me. Three years ago, Sligo County Council decided to get new housing application forms which were sent out to the 850 people on the housing list. Some 500 forms were returned which showed there were only 500 people on the housing list. I thought we might have got the figure right but that was not the case.

People who wish to qualify for rent allowance, opt for shared ownership or avail of the improvement works in lieu scheme must put their names on the housing list. I am sure the same applies in every other county. I do not believe the housing lists are accurate. We must find out how many people are on the lists because I believe they are out of sync with reality.

The improvement works in lieu scheme is very beneficial, particularly in rural areas in which people wish to remain. I know from experience that it has made a major difference to the lives of many people who could not afford to do up their homes but who were able to do so with the help of the scheme and who were able to continue to live in their homes. That is welcome.

The shared ownership is scheme is an excellent one, especially in rural areas, where one can still buy a new three bedroom house for €175,000 to €180,000. The one problem I see with the scheme is that it could be three to four months from the time people get provisional approval to buy a house to the time the county council pays for it. People selling houses are sitting ducks because there is no legal commitment on the part of the person buying the house or the county council who is purchasing it on his or her behalf. Some commitment should be given to the seller who may be concerned. Wearing my other hat as an auctioneer, I know people selling a house to someone buying on the shared ownership scheme may be concerned. As a politician, I am in a position to reassure them everything is okay and the sale will work out at the end of the day. However, some people become concerned and will not wait. As a result they lose the opportunity to purchase a home for themselves under the scheme. It is important that some measure would be introduced to ensure there is commitment on both sides.

I acknowledge the great work that has been done on housing estates in recent years, especially by people on FÁS schemes. They do not get the credit they deserve for their work. Local authority estates in Sligo have been transformed in recent years by this work and it is important that we would support it in every possible way.

Stamp duty for first-time buyers should be addressed as it is causing hardship. It is difficult enough to get a mortgage but stamp duty can make the difference between somebody getting a home or having to go on a housing list. We should try to address this matter in the forthcoming budget.

Another issue of concern is people on low income who apply for rent allowance. A lone parent with one child who came to my clinic recently was refused rent allowance because a three-bedroom house was considered to be too big for her accommodation needs. The maximum number of bedrooms required in her case was deemed to be two and, accordingly, her application was refused. I cannot understand this decision as two-bedroom houses are not available in the area. Nobody builds them.

Difficulties also arise for single men. The rent subsidy limit is €85 per week but one cannot get accommodation anywhere for €85 per week. In a case where the rent is €100 per week, no rent allowance is paid as the individual in question is considered to be over-accommodated. This is most unfair and the matter needs to be addressed. If a minimum rent allowance is available this should be paid to individuals and they can pay the difference themselves. People are prepared to do that in order to get accommodation where they wish to live.

The system is particularly discriminatory towards single men. Senator Cummins alluded to this point. I apologise for not hearing his entire contribution. The system does not properly cater for single men. They rate very low in regard to need in all local authority areas. This matter must be addressed.

It is important to recognise the work that has been done. The situation is difficult but certain changes can be made to make the system better. I am sure the Minister of State, Deputy Noel Ahern, understands the problems and he will endeavour to ensure the position is alleviated for people seeking their own homes and failing that, that they can rent at a reasonable cost with the aid of rent allowance without which they could not afford to do so.