Larry Butler (Fianna Fail)

——recapitalised the banks. The banks are taking a more social approach. The banks examined how payments could be deferred and paying interest only and they even discussed examining a rental system. In fairness, the banks are considering problems which might arise.

Previously, I mentioned to the Minister of State that it would be a good idea where people are in trouble with the banks that local authorities could intervene. It should be a requirement for banks to contact local authorities to see what help they could provide prior to a bank taking action. Instead of a bank taking over, a local authority could implement a rental system because the person involved may end up on the housing list and would have to be housed anyhow. There should be contact between local authorities and banks where difficulties occur and a rental arrangement could be agreed.

Much progress has been made with regard to controlling and having a good mix in estates. This is vital. The legislation on anti-social behaviour was a step in the right direction. Imaginative actions have been taken during the Minister's tenure. He has given local councillors the power to make regulations within estates and by-laws can be implemented to ensure the rule of law.

We may have to look at the provision whereby a local authority was entitled to 20% of the construction in their area. We may not be able to afford it. There is now a surplus of housing. A review should be carried out into our approach to this 20% provision. We might not want 20% from a developer in a particular area, but we might accept from him part of a development elsewhere.

The local authorities are now to the fore in terms of lending. There has been a scarcity of lending by building societies and banks during the past year. In some cases it has been impossible to get a mortgage. The local authorities may have to sell some of these properties much more cheaply. A one-bedroom apartment that was fetching €300,000 in place like Bellarmine in Stepaside, a very good area, is now selling for €222,000 or €230,000. The same local authority apartment in that development is €320,000. It is impossible to sell against a market like that. There are two choices — either use the units for social housing, which is needed, or take the hit, as the builders are doing in places like Bellarmine. You can buy a one-bedroom apartment in Belgard for €150,000. That gives some idea of the way in which local authorities will have to compete against the builders. Nobody will buy an affordable house from the council when it is dearer. Dublin City Council downvalued their properties by 25% some months ago and the valuation is even lower now. I suggest that we look at the social aspect and buy back some properties. We have to look again at prices.