Dáil Éireann debate -
Tuesday, 12 Dec 2000

Vol. 528 No. 1

Written Answers. - Local Authority Housing.

Liam Lawlor

Question:

280 Mr. Lawlor asked the Minister for the Environment and Local Government if he will review the clawback mechanism in relation to the local authority low cost sites scheme as it affects co-operative housing groups such as the Ballyowen Lane Home Ownership Co-operative, Lucan, County Dublin; if the application of the clawback mechanism will disadvantage co-operative housing groups or deter future initiatives of this kind (details supplied). [29514/00]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

I have reviewed the manner in which the claw-back arrangements in the local authority low cost sites scheme apply to groups such as the Ballyowen Home Ownership Co-operative.

On 15 June 2000 a subsidy was introduced by my Department to assist local authorities in the provision of low cost sites to eligible applicants. In addition a claw-back provision related to the difference between the market value of the site and the price at which the site was made available to the applicant was also introduced. The provision of a subsidy financed from public funds is necessary to encourage and assist local authorities to make sites available at low cost to eligible households seeking to attain home ownership while the provision for a claw-back is also neces sary to ensure that there is no short-term profiteering on the resale of a house provided on a subsidised site.

My Department is currently preparing regulations providing for the site subsidy and claw-back provisions. In this context transitional arrangements will be introduced which will provide that the claw-back provision will not apply where a formal written offer of a site was made by the local authority to an applicant on or before 15 June 2000. These transitional arrangements will apply in the case of the Ballyowen Lane co-operative. I have notified the Ballyowen group and the local authority accordingly.