New house grants for housing co-operatives
Deputies argued that a higher grant could encourage co-operatives and help address housing needs. The Minister ruled out increasing the £1,000 grant, citing scarce resources and the need for equal treatment of once-off house builders, while noting other financial and organisational supports for co-operatives.
asked the Minister for the Environment if he will consider increasing the amount of the new house grant payable in respect of houses built by housing co-operatives to encourage the development of them.
Comment on this
I have no proposals at present for an increase in the new house grant fo £1,000. Apart from the grant, first-time purchasers, including members of co-operatives, qualify for mortgage subsidy and tax relief on mortgage repayments. These represent substantial financial assistance. In present circumstances it would not be practicable to consider any increase.
Comment on this
Having regard to the Minister's reply to a previous question in relation to the encouragement of housing co-operatives, does he not think that this would constitute a very practical way of encouraging them and of people to participate in them?
Comment on this
The construction of houses by co-operatives or by individuals for their own use is seen as an alternative to purchasing from a speculative builder, thereby saving on the acquisition costs. It is considered that any increase in grant to member os co-operatives in equity would have to be extended to persons providing once-off houses on their own sites. Whole obviously this would be welcome it would involve the provision of scare capital resources at a time when demand for existing aids is extremely high. Reluctantly I must say to the Deputy that I cannot make any change in the scheme.
Comment on this
Would the Minister agree that the majority of people who would be interested in participating in housing co-operatives in the normal course of events would be on the housing lists of local authorities throughout the country, that they would have to wait many years for those local authorities to provide them with homes in view of the State involvement there, and that the provision of additional financial incentives——
Comment on this
—— to housing co-operatives in the long term would prove beneficial to both purchasers and the Department of the Environment?
Comment on this
I think the Deputy is aware of the situation in regard to housing co-operatives—we have alredy discussed it. In relation to the £1,000 grant and the £3,000 mortgage subsidy, the Department are providing increased grant aid to assist in the organisation of housing co-operative groups. Grant aid, subject to a maximum of 75 per cent of actual expenses incurred, is payable by the Department towards the administrative and general expenses incurred by a number of non-profit making housing organisations. One such organisation is the National Organisation of Building Co-operatives. Therefore, additional aid is being made available in this area.