asked the Minister for Local Government the reason for the recent increases of up to £250 in the price of houses under the Limerick Corporation tenant purchase schemes; and if he will allow the corporation to revert to the original prices calculated by them.
Ceisteanna — Questions. Oral Answers. - Limerick House Prices.
27.
Mr. O'Malley
In preparing a purchase scheme for their houses a local authority are under a legal obligation to base the selling price on the market or replacement value of each house. The prices included by most local authorities in their draft schemes have, in fact, complied reasonably with this requirement. However, those in the Limerick scheme were substantially lower than the figures which, I was advised by the Valuation Office, would represent a reasonable market or replacement value. I had, therefore, no option but to make my approval to the scheme subject to the modifications to which the Deputy refers. My approval was also subject to an extension of the loan period from 30 to 35 years, which would reduce the annual repayments for those wishing to buy over the full period permitted in the scheme.
As the Deputy may be aware, the basic sale prices are subject to a discount of two per cent for each year after five during which an intending purchaser has continuously been a tenant of a local authority dwelling, subject to a maximum discount of 30 per cent.
In view of the fact that Deputy O'Malley is not present to ask a supplementary question I want to ask the Minister now why he has increased the valuation which Limerick Corporation put on those houses by £250 in view of the fact that most of the tenants have been for 30 or 40 years and maybe more, in those dwellings? I do not know where he got his valuer. Is there any qualified valuer in this country who will value any house that is occupied?
If Deputy O'Malley is not present he was present in my office yesterday with representatives of all the people concerned.
I know all that.
I have explained that the law places an obligation on the local authority to assess those houses at their market or replacement value. There was very considerable disparity between the valuation decided on by the Limerick Corporation and that put forward to me by the Valuation Office. It is not true to say that the cost of the houses to prospective purchasers is increased by £250 since there is available to them this reduction of two per cent for every year after five subject to a maximum of 30 per cent.
Will the Minister tell me has he any qualified valuer in this country who will value any occupied house? The valuation of those houses has been increased by £250 and they are occupied by tenants who have been there for a long time. Does the Minister consider that a house can be offered for sale at the same price occupied or unoccupied? Who was the qualified valuer who assessed the Minister's price?
The price estimates by local authorities generally are in reasonable conformity with those given to me by the Valuation Office but Limerick Corporation appear to have approached the matter from a different point of view from other local authorities.
Limerick Corporation valued these houses——
We cannot have a debate on this Question. I am now calling Question No. 28. We have 147 Questions.
With all due respect, a Cheann Comhairle, I have persons who are interested to the extent of an increase of £250 laid on them by the Minister.
Other Deputies have Questions on the Order Paper which are of interest to people.
Who was the valuer? What qualifications had the valuer got?
Would the Deputy please resume his seat? There are other Deputies with Questions.
What qualifications had he to value these houses?
Would the Deputy please resume his seat?
The Deputy might put down a Question, as Deputy O'Malley did.
Deputy O'Malley is not even here today.