Seanad debates

Tuesday, 25 September 2012

Adjournment Matters

Ground Rents Abolition

4:05 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein) | Oireachtas source

I welcome the Minister of State to the House. I wish to raise the issue of ground rents, a long-standing issue for many individuals and families in the State. Ground rents are something of an oddity and an anomaly, but they do not comprise a benign anomaly. They are, in effect, a hangover from a colonial past. It is shameful that, almost 100 years since the proclamation of the Irish Republic, citizens are still paying rent to absentee landlords. I refer not only to individual citizens as I understand the Office of Public Works pays ground rent of ¤14.44 per annum to the Duke of Leinster for the National Library of Ireland's premises. While this may be seen as a small amount, it is preposterous that State and Government buildings are still subject to ground rents to absentee landlords.

Ground rent landlords do not need to be compensated in the event of the abolition of ground rents. As a legacy of colonialism, ground rents have been unjust from the beginning. Therefore, compensation would legitimise what is manifestly unjust. Those who are bearing the real brunt of this ongoing ground rents fiasco are those private homeowners who find that their ground rent leases are about to expire and who face having to choose between buying out their ground rent lease, paying one eighth of the value of their home to the ground rent landlord or renewing the lease for a far higher rate than they had previously been paying. People are faced with demands for huge sums from the ground rent landlords and this is causing severe hardship for many.

I was motivated to raise this issue because I was contacted by the chairperson of the Lismore Park residents' association in Waterford, an association that covers hundreds of houses in Lismore Park, Lismore Heights and Lismore Lawn in Waterford city. Many people find that their leases are up for renewal and they face bills. The alternative for those who cannot afford to buy out the expired lease is to sign a renewal of the lease for 35 years. Many of those who find themselves in this invidious position are elderly and have no income other than their pensions. The rents are an unjust feudal imposition and are uncommon and unacceptable in many other countries. Ground rents primarily affect elderly people whose leases often expire when they reach a senior age. Ground rent landlords and their legal professionals capitalise actively on the frailty of the elderly.

I will not get into the detail of the Shirley case, of which I am sure the Minister of State is aware. Based on this case, the Tánaiste and the Taoiseach once made very clear commitments that, if they ever were in government, they would legislate on this issue. When in opposition, the Taoiseach, when supporting a Fianna Fáil-led Bill following the Shirley case, stated his party shared the then Government's view on the important issue and looked forward to being in a position to act following the general election. He was speaking about abolishing ground rents.

In March 2007 when in opposition, Deputy Gilmore, now Tánaiste, said:

    As you know, the Labour Party wishes to abolish ground rents. As you know we brought forward a Private Members? Bill some time ago to this effect. If in government, we intend to introduce legislation along those lines.
Where is this legislation? Is what I propose legislatively possible? I believe so and the Taoiseach and the Tánaiste believed so when in opposition. We owe it to the citizens who live in Lismore Park, Lismore Lawn and Lismore Heights in Waterford and to many others across the State in the same circumstances. It is unacceptable that this has not been fully resolved. It is a hangover from our colonial past and we should deal with it. We have a responsibility regarding the affected citizens. I look forward to the Minister of State's response.

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