Damien English (Meath West, Fine Gael) | Oireachtas source

I agree that there was no scheme for a number of years, but the Senator said this scheme was two years old and, for the record, I wanted to clarify that it is not. It is six months old. I spoke on this in the Dáil last week and I agreed that we needed to review it, but not six months into it. Our intention is to review it 12 months after it came into operation, which will be next January. The scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum. They must have been in receipt of social housing support for at least one year and have been allocated a house under a local authority allocation scheme. Similarly to other incremental purchase model schemes currently operating, the scheme involves progressive discounts for purchasers linked to household income, ranging from 40% to 60% depending on income, with the housing authority placing an incremental charge on the house equivalent to the discount given, and this will stay in place for 20, 25 or 30 years. The Senator knocks the scheme, but I think it is a very attractive scheme and there is a good offer in comparison to other schemes for those who fit the criteria. It is based on income, rather than number of years a person has been in the house, but I agree that it is not a perfect scheme and that there are parts we need to change.

The minimum reckonable income for eligibility under the scheme is determined by the relevant housing authority in line with ministerial directions. It can include income from a number of different sources and classes, such as from employment, private pensions and maintenance payments. The reckonable income can also include most social welfare payments, including pensions, where the social welfare payment is secondary to employment income. The Senator raised this issue and we need to look at it. If people are reliant on disability benefit or allowance they will be probably be reliant on it for the next number of years, and I have a difficulty with their being precluded from buying a house. We do need to look at the criteria to see if we can accommodate this and change it to allow for them to qualify, bearing in mind that a person who purchases a house has the responsibility for maintaining the house, insuring it and paying all the various charges, including water charges if they come back. There are costs after one buys a house, and just because somebody has a windfall it does not guarantee that they can run the house thereafter. That is an issue we must examine.However, I accept the Senator's point. If someone wins a decent amount of money, he or she should be in a position to buy a house that has been the family home for a long time. That is something we should be able to allow for as well. We will examine the matter. I have an open mind in terms of examining all the criteria and reviewing the position.

It is important to note that the income of all the tenants of the house, including adult children that are joint tenants, can be included, as can the income of the spouse, civil partner or other partner or cohabitant of a tenant who lives in the house with them.

It is essential that the income of an applicant under the scheme is of a long-term and sustainable nature, which goes back to the point I made. Having a lump sum of money is not always enough. That is necessary to ensure that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period, in compliance with the conditions of the order transferring ownership of and responsibility for the house from the local authority to the tenant.

The new tenant (incremental) purchase scheme is in the early stages of implementation - the first six months - and my Department is monitoring the operation of the scheme in consultation with housing authorities. I gave a commitment to the Senator's colleague Deputy Barry Cowen and others during the Dáil debate that we will engage on the issue. We will talk to anyone who is interested. I am open to all ideas on criteria. We will analyse all the ideas with a view to making changes, if need be, from next year on.

In line with the commitment in the new programme for a partnership Government, a review of the 2016 scheme will be undertaken following its first 12 months of operation. Any changes to the terms and conditions of the scheme that are considered necessary will be introduced based on the evidence gathered at that stage. I hope that provides clarity on the issue for Senator Murnane O'Connor.

The matter of Part V properties was previously raised. There is a logic behind not allowing Part V houses to be sold. The aim of the scheme is to provide for a mix of housing in a given area, and if we sell those houses we lose the opportunity to have a social mix, which is the intention. The scheme is designed that way for a reason. If we sell all the houses built under Part V then the aims of the scheme could be compromised. There is logic behind the approach taken. I am happy to tease out the matter. I accept the reasoning behind the Senator's suggestion but there is a logic to the approach being taken in not allowing Part V houses to be sold.