Michael Finucane (Fine Gael)
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I welcome the Minister of State to the House. Glenma housing estate in Croom, County Limerick, has 43 houses which were built by the National Building Agency in 1973. Some 35 houses are privately owned and Limerick County Council owns the remaining eight, of which five are occupied, while three remain unoccupied. That these have remained unoccupied for a period of time has led to a variety of problems.

The houses are of flat roof construction with metal cladding. Recently I called there and met many of the tenants. They are extremely annoyed and disappointed that no work has been carried out even though approval has been granted by the Department since 14 May 2002. Many of the private owners are understandably furious because they have had them for a considerable period of time and now are being forced to take out loans of up to €100,000 to carry out appropriate repairs. They have good cause to be annoyed because of the defects in the houses. The works will include new pitched roofs to replace the existing flat roofs, the recladding of external walls, rewiring, installation of central heating as well as improvements in windows and doors. Not all the purchasers of these houses are interested in availing of the refurbishment work. The deterrent in some cases is the prohibitive cost involved.

I believe the Department of the Environment, Heritage and Local Government, in conjunction with Limerick County Council, should review the prohibitive financial demands on the residents. Concern has been also expressed that the works carried out could mean some rows of houses in the estate will have pitch roofs, while others will retain flat roofs. This will not add to the visual attractiveness of the estate. The original individual design of the houses, and the inherent defects, are the fault of the National Building Agency. Can it walk away from this? The Minister should bring the agency to task. It should be made account for its work rather than placing a cruel financial burden on those who were encouraged to purchase their houses.

It was obvious the estate infrastructure was neglected. The road structure is particularly defective. I understand Limerick County Council has stated it will not carry out these works until the houses are finished. This is unfair. There should be no impediment to road resurfacing works being carried out in the estate. I will press the council on this issue and look forward to the Minister of State's reply.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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I am pleased to have the opportunity to take this matter on behalf of my Departmental colleague, Deputy Noel Ahern.

Glenma housing estate is a private estate of 43 houses built by the NBA in 1973. Of these, 35 are privately owned; they were sold as private purchases when the estate was originally built. Limerick County Council owns and rents the remaining eight houses.

The houses were constructed with flat roofs. The first floor is finished with a metal cladding fixed to a timber stud wall which forms the internal frame of the houses. There are various defects with the houses and these include leaking roofs and poor quality external cladding which is, in general, no longer weatherproof. Limerick County Council submitted a proposal to my Department to refurbish the estate under the improvement works in lieu of housing scheme and the remedial works scheme. The proposed works include the provision of new pitched roofs to replace existing flat roofs, the recladding of external walls and the upgrading of windows, external doors and external finishes, rewiring and installation of central heating, and some site development works.

The improvement works programme allows local authorities to improve or extend privately owned accommodation occupied by households who are assessed to be eligible for local authority housing as an alternative to being rehoused by the local authority. While this scheme would not be normally used to upgrade an entire estate, this is considered to be an exceptional case and my Department agreed in principle on 14 May 2002 to have the improvement works carried out under it. Under this scheme the householders will be required to make repayments for the cost of the works to the local authority, based on the ability of households to pay. The scheme also provides that a local authority and the private resident must enter a legal agreement which will go as far as possible in protecting the expenditure of public funds on private property.

I understand extensive discussions have been held between the county council and the local residents and that 23 of the households in private ownership are fully supportive of the council's plans for refurbishment in the manner proposed. I also understand that, at this time, the remaining nine residents are not interested in having refurbishment work carried out on their homes. The plans as they now stand are for works to 23 private residences and eight local authority owned residences. The remaining 12 houses are situated in one block and all are privately owned. I understand three of these houses are unoccupied and that the council would consider purchasing the units should the remaining nine householders agree to participate in the scheme. My Department issued approval to the council on 20 July 2004 to progress the refurbishment works to the eight council owned houses under the remedial works scheme. The cost of the works was determined at €818,464.

My Department also issued approval on 20 July 2004 to the external and internal works proposed under the improvements in lieu scheme for the 23 privately owned dwellings, and a budget cost of €1,837,386 was determined for these works. It is understood delays have occurred due to agreements being obtained on the deed of charge whereby the cost of the works to private houses are charged against the folio. This enables the council to recoup the cost of the works in the event of the property being sold on. However, the council has obtained agreements in respect of one entire block which comprises six units — three private and three local authority owned. It is anticipated work will commence in early November on this block, subject to agreement with the contractor. It is understood from the council that discussions are ongoing in respect of the deed of charge for the remaining units.

Michael Finucane (Fine Gael)
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I would like the Minister of State to bring my concerns to the NBA who originally built the houses. I do not think the NBA can walk away and I would be interested in hearing its reaction to this. An unfair financial burden is being placed on many elderly people in this estate regarding the cost of refurbishing the private houses. This is acutely unfair — the problem was not of their making.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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I have seen many of these schemes going ahead. I note the Senator did not say anything about the enhancement and increase in value of the houses that will accrue as a result of the improvement works. The value of a house went from €400,000 to almost €700,000 following improvement works carried out in an estate in my old constituency,

It is to the benefit of people to have these houses upgraded. It will enhance the value of the houses and make them more comfortable. We have specified that account will be taken where householders cannot afford to pay for these works. The council will deal with them as fairly and practicably as possible.

Michael Finucane (Fine Gael)
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And the NBA will be allowed to walk away.