Seanad debates

Wednesday, 13 July 2011

Unfinished Housing Developments: Statements

 

5:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)

Approved housing bodies are the way forward. An assessment was carried out at the end of March and approximately 100,000 will be on the list when it is released in August. A total of 100,000 people are being supported by rent supplement of €500 million. I intend to change the system and to give responsibility for rent supplement to the local authorities. There is no sense in having rent supplement formerly administered by the HSE administered by the Department of Social Protection. It should be an integrated system. The local authorities will pay the rent and will enforce the standards. There will be no more unsuitable, substandard accommodation being offered by landlords who were being paid for it. However, in some cases the landlords never received any payment and they suffered as well.

I want to bring balance into the system which will be subject to the PRTB which will be amended to include these provisions. I hope Senators support me in this work. It is hoped that exorbitant rents will be driven down. Landlords will be required to register with the PRTB and every month, the local authority will be in a position to send a letter to the local Revenue office to certify that rent has been paid to individual landlords. There will be no more of the nonsense that a person cannot be accountable and neither will there be under-the-counter payments because the local authority will pay directly the rent supplement of €85. It will not be the case of a rent of €100 with €15 coming from the person's own pocket. I look forward to this House supporting this work because there will be squeals and backlashes and complaints. We do not have the money. We are borrowing it. We have to make the most productive use of it to ensure that the 100,000 people on the list are facilitated with quality accommodation.

On the question of the leasing initiative, if the leasing initiative was that good for developers, why have only 1,300 units become available since its introduction? For example, if Senator Hayden is the tenant under the long term leasing initiative and she builds up a score of equity, unlike the hire purchase or leasing agreement, at the end she pays a proportion of what is left. This might build up to 30% or 33% equity. I cannot say this up-front, but that then becomes part of the general government deficit under the 3%. It is only at the end that it becomes achievable. Equity will be part of the leasing initiative. That will also mean the approved housing bodies will have to change their perspective. I would like to see a tenant purchase scheme within that structure because many people have been in situ for ten or 12 years. Senator Labhras Ó Murchú would know a lot about this than I would. However, some of those involved do not want to sell. It is time for a change to ensure equity and choices.

I am looking forward to driving down the M4 with Senator Marie-Louise O'Donnell because it is a beautiful trip. I hope she will stop in Mullingar.

I have a lot more to say, but I know the Leas-Chathaoirleach gets cross whenever anyone goes over time. I am glad to be here and will be delighted to return. It will be 12 months by the time we have an opportunity to progress this, but I want to report that significant progress was made yesterday. I will not stop in my efforts to deal with unfinished housing developments. I thank Senators for their ideas which will be examined constructively.

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