asked the Minister for Local Government if he will elaborate on the revised tenant purchase rebate percentages now permitted by his Department; the date of operation of the new scheme; and if the revised arrangements have been notified to all local authorities.
Ceisteanna—Questions. Oral Answers. - Tenant Purchase Schemes.
129.
Before their recent amendment the statutory conditions which empowered local authorities to make schemes for the sale of their houses to tenants provided that the sale prices of the houses should be a sum equivalent to the market or replacement value of the houses less certain deductions. The deductions in built-up areas amounted to 2 per cent a year for each year after five during which the tenant had been in continuous occupation of a local authority dwelling, subject to a maximum discount of 30 per cent. The corresponding figures for non built-up areas were 3 per cent and 45 per cent respectively. Following a review of these conditions I decided, with the agreement of the Minister for Finance, to amend the regulations to enable local authorities to grant a discount for every year of continuous tenancy and to increase the rate of discount in built-up areas from 2 per cent to 3 per cent. The maximum deductions allowable remain at 30 per cent for houses in built-up areas and 45 per cent for houses elsewhere. The revised discount provisions apply to sales schemes approved by me on or after 1st July, 1972. All local authorities were notified of the revised provisions by circular letter dated 7th July, 1972.
In the case of housing schemes in urban areas why not give the tenants fee simple possession instead of placing on them the restrictions imposed in the terms of the vesting and sale orders?
That is a separate question.
Would the Minister say if he has in his Department a number of schemes for tenants which have not yet been sanctioned? Was it because he was waiting to give them the benefit of the new regulations that he delayed them for several months?
A number of schemes, I understand, are being finalised in the Department at the moment. Any of these approved after 1st July will qualify for the new concessions.
Is it a fact that old-established tenants in the Crumlin area are being charged four to five times what it cost to build the houses they have occupied for very long periods? The Minister says this is the market value of the houses but is it true that tenants of houses built for £500 or £600 in the thirties are now being asked £2,500 for them with the maximum rebate of 30 per cent?
I do not think the question relates to Crumlin.
The Minister will not get off the hook as easily as that.
The question is a general one and is not specific.
I asked the Minister a question that certainly arises. What is the price that tenants are being charged? The Minister said they were being charged the market value. Am I right in saying people are being charged four, five or six times what the houses cost to erect? The money was borrowed at the old percentage rate. Are the Government attempting to finance the erection of new houses at the expense of existing tenants?
It is a separate question and it has been answered by me on numerous occasions. If the Deputy is really interested there is no difficulty in finding out the answer.
(Interruptions.)
It is based on the market or replacement value of the house which could, perhaps, be double the cost of construction—I do not know——
We cannot have an argument at Question Time.