Paul Bradford (Fine Gael)

In 1987, he introduced a progressive tenant purchase scheme which made a difference. Generous discounts were made available to local authority tenants who wished to purchase their homes and thousands of them chose to do so. I was an advocate and fan of the scheme which lasted until 1989 because the substantial discount available offered tenants value for money. The tenant purchase scheme which has been available for the past five or six years has not worked because it offers a maximum discount of 30%. Having checked the position with various local authorities, specifically in County Cork, I learned that take-up of the scheme is very low, the reason being that houses are valued at current market value and the maximum discount of 30% applies irrespective of whether a tenant has been living in a local authority dwelling for ten, 15 or 20 years. The scheme is not as attractive as its predecessor and should be reviewed.

I am aware that a different scheme, the incremental purchase scheme, will be introduced under the legislation and will operate in tandem with the tenant purchase scheme. I hope the new scheme will succeed and look forward to tenants availing of it. While I have not studied it in detail, it appears to be advantageous for certain groups of local authority tenants. We should aspire to allowing the maximum possible number of people to buy homes as it is good for local authorities, communities and society. This aspiration should be at the top of the Minister of State's agenda.

I look forward to a debate on Committee Stage on the need to finalise a tenant purchase scheme for local authority tenants of flats and small dwellings. I understand the Taoiseach indicated in the other House that it may be possible to amend the Bill on Committee Stage to provide that local authority flats can be purchased. Persons living in local authority flats and other small dwellings are not second class citizens. Under current legislation, however, they are not legally able to purchase their homes in the majority of local authority areas. We must take a flexible approach which allows such tenants to purchase their homes. I hope the Minister will act on the statement given by the Taoiseach in the other House in response to a query made on the Order of Business.

The rental accommodation scheme is useful and successful. I was interested to learn that take-up of the scheme has been weak. We need to sell and advertise RAS more effectively. Although I consider myself more a local than national politician and know housing grant schemes and local authority housing programmes very well, I did not become aware of the RAS until 12 months after it was introduced. The scheme offers a solution for a certain group of people and is good for landlords and tenants. It also benefits the Minister who can console himself that the tenant's name is removed from the housing list.

The problem with the affordable housing scheme is that houses are not affordable. Despite disappointing take-up, it should be possible to boost the scheme in the current downturn in the housing market. At a time when people want houses, builders need to sell houses and construction workers need to keep their jobs, it should be possible to find a solution that will benefit all parties, whether taxpayers, tenants, builders or auctioneers. Fresh, original thinking always has a role to play in housing policy. I look forward to discussing these issues in greater detail on Committee Stage.