Richard Bruton (Dublin North Central, Fine Gael)
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Question 329: To ask the Minister for Justice, Equality and Law Reform when the Government will introduce legislation to ban the practice of ground rents; and if he will make a statement on the matter. [21693/06]

Michael McDowell (Dublin South East, Progressive Democrats)
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The position is that section 2 of the Landlord and Tenant (Ground Rents) Act 1978 prevents the creation of new leases reserving ground rents on dwellings with effect from 16 May 1978.

More recently, issues relating to the creation of fee farm grants have been considered by my Department and the Law Reform Commission in the context of a joint project to reform and modernise our land and conveyancing laws. The July 2005 Report entitled 'Reform and Modernisation of Land Law and Conveyancing Law' [LRC 74 — 2005] contains a proposal to prohibit the future creation of fee farm grants at law or in equity.

I am pleased to say that the Government has recently approved my proposals for a comprehensive Land and Conveyancing Law Reform Bill which will give effect to reform recommendations contained in that Report. The Bill, which will be published shortly, will contain a proposal to prohibit fee farm grants in future. Following enactment of this provision, any attempt to grant a fee farm grant will result in the grantee obtaining the fee simple discharged from any obligation relating to payment of ground rent.