Bernard Durkan (Kildare North, Fine Gael)
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Question 178: To ask the Minister for the Environment, Heritage and Local Government if he will review the position in respect of local authority housing applicants, who are purchasing subsidised sites from the various local authorities with the objective of identifying the precise amount of subsidy or the removal or reduction of the 20 year claw-back; and if he will make a statement on the matter. [26113/05]

Noel Ahern (Dublin North West, Fianna Fail)
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The level of low cost site subsidy provided by my Department to a local authority under the low cost site scheme varies from location to location depending on factors including the acquisition and development costs of the sites. The price at which the local authority intends to sell such sites to housing applicants is a matter to be determined by individual local authorities and the amount the subsidy to be recouped by the Department is subject to the Department's approval prior to the disposal of such sites.

My Department has no proposals to change the conditions of the claw-back arrangements relating to this scheme. Under the scheme local authorities are providing housing applicants with sites at discounted values and therefore to avoid windfall gains accruing to the new owner by a sale within a short period after the acquisition of a subsidised site, the owner must repay a proportion of any profit from the sale of this site to the local authority. Where a site is sold within the first 20 years of occupancy the amount to be repaid is calculated using a formula which has been circulated to all local authorities. The amount payable is reduced by 10% per annum for each full year of occupancy between ten and 20 years. After 20 years no refund would be due to the local authority.