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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Tenant Purchase Scheme.

Tenant purchase price disparities

Summary

Quinn raised the unfair differences between payments under the 1988 scheme and earlier schemes, and asked the Minister to consider equalising costs. Flynn said the 1988 scheme was a one-off, could not be altered or transferred to, and was designed partly to support local authorities’ finances; he also confirmed there would be no 1989 scheme.

I want to ask two questions. Is there to be a 1989 tenant purchase scheme? Arising out of the response of various tenants to the 1988 scheme and the method of market valuation, is the Minister aware that anomalies have arisen whereby people who contracted under the 1986 scheme or earlier schemes find themselves buying houses at a rate far in excess of that being paid by their neighbours? Is the Minister aware of those problems and of the discord being caused between neighbours? If so, has he any proposals to reduce the anomalies between this scheme and the older schemes?

Comment on this

The answer to the first part of the Deputy's question is no. Regarding his second question, I am aware that anomalies exist. That was always a feature I did not like about the scheme but it was a once-off scheme and people were left under no illusions as to what it meant. This was a 1988 scheme and those who had agreed to purchase their homes under previous schemes could not transfer to it.

Comment on this

At one level this matter is critical for local authorities but everyone in the House must be concerned about equity. In my constituency people living literally next door to one another will be paying a difference of between £20 and £30 per week to local authorities. In such cases will the Minister consider amending the housing scheme or recommending to the local authorities that at the end of the mortgage period five years will be taken up to provide some degree of equity? In other words will he agree that while it is necessary to maintain cash flow at current levels for local authorities, equity could be achieved between new scheme purchasers and old scheme purchasers by means of a reduction in years? Will he give consideration to that?

Comment on this

A whole variety of anomalies have been brought to my attention concerning this matter. People who moved into their homes on 1 February want me to extend the scheme to that date. People have also written to me saying they are deprived of the right to buy their homes because they did not move in until the middle of the year and so on. Unfortunately, the scheme was a once off which terminated on 31 December last and I cannot alter it. I note the Deputy's remarks about some of the difficulties involved but I cannot give any undertaking in relation to them. People should not have an expectation that there will be any variation in regard to this matter because that is not the case.

Comment on this

The tenant purchase scheme was introduced in 1966 or thereabouts. Will the Minister accept that none of the previous tenant purchase schemes caused as much tension in terms of anomalies between previous and existing terms of purchase? Having regard to the fact that the Minister introduced this market value based system and, therefore, must take some responsibility for some of the anomalies, will he give the House an indication that he will seriously look at various means which would have as their objective the equalisation of the purchase cost to different tenants——

Comment on this
Seán Treacy An Ceann Comhairle Independent

This is repetition; the Deputy has made his point.

Comment on this

This has been the most successful scheme since the first tenant purchase scheme was introduced years ago. The indication is that many people want to avail of it, indeed it involved 45 per cent of the total stock. It is well to remember that there is a huge imbalance between the question of management and maintenance costs. In the last year for which we have figures — 1986 — the total cost was £71 million but the total rental income that year was just £39 million, a deficit of £32 million. This scheme was designed to help local authorities in relation to their cash flow. I am aware of the anomalies but I cannot do anything in so far as that scheme is concerned. However, the Deputy made a good point and I am listening.

Comment on this