The Labour Party support this Supplementary Estimate. The first priority is for better housing grants. A Deputy from my own county mentioned some time ago the number of foreigners who come in here. In West Cork we see those people coming along, buying a piece of land and erecting a house but we also have this other affluent section of the people who find it is not terribly difficult to provide the money to build a house.
We all know that building costs are escalating very much. They could be termed skyhigh at the present time. Deputy L'Estrange mentioned £3,400 as the figure given by the Department for the erection of a five-roomed house. In many places in West Cork, where they have not the same facilities as nearer Dublin, the price is much higher. I believe there should be some inquiry into house building costs. I know they vary very much throughout the country but there is no question that so far as private building is concerned at the present time, due to the scarcity of skilled operatives—many of them had to go out of the country some years past when the work was not here for them—house building is a very costly job. There are possibly other factors such as the cost of land, which might also need to be taken into account. I consider that there is an obligation on the Department to inquire into the cost of house building and to find out whether those costs are justified or not.
We all know it is very difficult to get capital for house building at present. This is particularly so so far as private house building, and to a lesser extent public house building is concerned. The grants given at present are quite inadequate. I know they were increased to £150 some three or four years ago and there was also an extra £150 given for a certain class of applicant, but we must take into account that costs in the meantime have soared far beyond that. A house that could be built for £3,000 in 1964 today costs about £4,200 or £4,300 and the increase would be around 35 per cent. I am basing those figures on my own part of the country with which I am conversant.
The Minister again, if private house building costs are not reduced, and it seems unlikely they will be, should address himself to the question of increasing the grants. I should like in particular to see an increase in so far as applicants who would qualify for local authority houses are concerned. I believe he should encourage people to provide their own houses if at all possible. It is much better to expend money by way of giving grants to people to provide their own houses rather than have local authorities providing houses for them. I am convinced of that. From every aspect it is much better to encourage people to provide their own houses. I know that much cannot be done without the aid of loans and grants. Loans are prohibitive at the present time, as 8 per cent per annum is a big price to pay for money and many people find it difficult to avail of local authority loans, and insurance company loans which are at a higher rate than local authority loans.
I have always admired the scheme in relation to reconstruction grants and I have admired the local authorities who have adopted the supplementary grants schemes because, undoubtedly, were it not for the grants available from the State and local authorities many of our houses would not be in the condition they are. A substantial number of our people have availed of, or are availing of, these reconstruction grants and trying to keep their houses habitable and up to reasonable standards. But, here again, at the present time there is this money problem. Costs are increasing and combined grants for reconstruction, irrespective of the work done, are at the figure of £280—£140 from the State and £140 from the county council. It is some years now since the reconstruction grants were increased by £20—from £120 to £140 by the State and I think the time is ripe now for another increase.
While I am inclined to agree that the percentage rate is reasonable at 66?, I think the maximum State grant payable should be moved up at least into the £200 bracket. In view of the fall in the value of money and the increased cost of reconstruction work, that is not an unreasonable figure.
Generally speaking, reconstruction grant applications are dealt with speedily, and, to a large extent, efficiently. There are very few complaints. I agree with the Department's adherence to ensuring that the work is carried out to a certain standard. There is no justification for payment of grants for sub-standard work and it is essential to have the work up to a reasonable standard.
You will, of course, meet some difficult cases. Every Deputy will have come across them and the Department's attitude is not very helpful. I am referring to the case where a person through lack of knowledge of the rules will commence work before the 15 years limit of the last grant has expired and the Department are not helpful here. That is a mean attitude. Where activities have been carried out in good faith and where the work has commenced mainly due to a lack of knowledge in so far as the regulations are concerned, the Department could be a little more broadminded than they are, particularly having regard to the limited number of cases that arise.
A broadminded attitude might be adopted in this regard but I must confess that there is little use in approaching the Minister to review cases like that. I have in mind the case of a widow in West Cork who lost £80—£40 from the State and £40 from the county council—because she commenced work a few months earlier than the 15 years limit. I am not making a case that there is no obligation on people to be conversant with the regulations. It is essential that people who apply for grants should get particulars and investigate the regulations in relation to grants. In view of the limited number of cases arising and the circumstances of the people concerned, it is amazing that the Department adopt the attitude they adopted in a number of these cases without any justification. I believe the regulations should be applied in a more flexible manner.
We in this Party would like to see, when the annual review of the Department comes before us, an increase in the rate of reconstruction grants. I think it is desirable that such an increase should come about without delay.
In so far as private water schemes and private sewerage schemes are concerned, like the reconstruction grants the work here is moving along smoothly. There is no great delay in dealing with the applications for grants approved and paid by the State and local authorities. But, here again, the question of an increase in the rate of grants arises. The present rate of £75 for water and sewerage in the case of individual applicants is inadequate and I think it should be increased in proportion to the rate of increases generally in costs in recent years.
There is the question of section 30 grants where the Department limits itself to the payment of £80 and in some cases a council will have to pay up to £400-£500. That is unfair on the part of the Department. Under section 30 of the Act, the State grant is £80 and I think that figure should be increased. We can get very little reconstruction work carried out for £80 and the type of people who benefit from such grants are those who are incapable of making any contribution towards the cost. The grants are available only to those whose financial circumstances prevent them from keeping their houses habitable through their own resources. The Department should help the local authorities who are implementing this scheme and relieve them of some of the burden. I have said already that there are sums of up to £400-£500 involved from the local authorities in some cases.
In so far as private work is concerned —reconstruction work, water and sewerage schemes—generally speaking, there is not much to complain about, but in the matter of public schemes, the Minister and everyone associated with the Department are at a dead stop. I could go over again the picture painted by Deputy L'Estrange. I do not know how many circulars the Department have sent out to housing and sanitary authorities. Had I known this debate was to take place I should have brought in, Sir, for your viewing, a circular showing a woman with two buckets. That was a special circular sent out by the Department to housing and sanitary authorities telling us that the day was gone when we had women bringing buckets of water from wells, that piped water supplies would be made available to all and sundry and that local authorities should go ahead and make their plans and set about them, particularly in the case of regional schemes.
We were being whipped in Cork, and I suppose the same circulars went out to all local authorities. What happened? Unfortunately, the story is a rather sad one. I will confine myself to portions of the West Cork area, to the electoral divisions of Cork county where the Western Committee of Cork County Council function as a housing and sanitary authority. What picture do we find? In response to these circulars, particularly those with the drawings, setting out the Department's recommendations in regard to the planning of schemes, we had the Clonakilty scheme. The Minister knows all about our schemes—he has received deputations on the matter.
The Clonakilty scheme was planned entirely in accordance with circulars or demands made by the Department. We embarked on sizeable expenditure to get it off the ground. The total cost to the county council from local revenue was £20,000. I had occasion to mention the scheme in the House on previous occasions but I wish to refer to it now once more because we may not have an opportunity again for some time. The council, in accordance with Departmental approval, sought tenders for the implementation of the scheme and we got competitive tenders from a wide range of leading contractors. It was the opinion of the council's technical advisers that the tenders were most competitive.
I have no idea what the cost would be to an individual contractor to submit a tender for a scheme whose cost would be in the region of half a million pounds. I am sure it would be a sizeable figure. However, we were quite satisfied with the pricing of the tenders. Then last February, the Department told us there was no money, that the tender would not be approved if we sent it alone. Without in actual words telling us that there was a lack of money, they confronted us with technical hitches of one kind or another and the whole scheme went by the board. That is the position up to date.
Either by way of question or on the Estimate, I indicated what the position was and told the House it arose because of the Department's negligence and asked that the £20,000 lost to the ratepayers of West Cork should be recouped by the Department. There has been evidence of gross neglect by the Department and I suggest now that the Minister gives us the green light for the implementation of this scheme without further delay.
Still driven by the Minister's circulars, we embarked on a second scheme, the Baltimore and Skibbereen regional scheme in which the cost has been estimated at £247,000. This is a most desirable scheme but there is no possibility of getting it off the ground because there is no money available. That scheme is at the tender stage. I realise that the Minister's problem is that he has to deal with the country as a whole, that schemes are flowing in to the Department from different parts of the country, sizeable schemes that will cost a great deal of money. The reason I am going into this is to show it is due to the neglect and lack of foresight of the Minister and the Department. They asked the local authorities to prepare the schemes. When we were preparing the Clonakilty regional scheme I happened to be chairman of the local committee and I anticipated that a scheme of that size would not be approved because the money would not be available. I appreciated that we should try to complete smaller schemes, piecemeal, and that submitting regional schemes in respect of which there was little likelihood of getting money was not the best way of setting about the provision of water supplies in the West Cork district. Unfortunately I have been proved correct. At that time the Department thought otherwise and asked us to send up regional schemes saying that was the most effective manner——