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Dáil Éireann debate -
Thursday, 23 Nov 1972

Vol. 263 No. 13

Ceisteanna—Questions. Oral Answers. - Tenant Purchase.

96.

asked the Minister for Local Government if he will alter the conditions as set out in circular letter H.5/67 article 132 to provide that in determining the period of tenancy to qualify for discount, the son or daughter who was appointed tenant where the father leaves a house and gives up his tenancy and who was resident with the father at the time he gave up his tenancy should be regarded as having held the tenancy for the entire period of the father's tenancy.

97.

asked the Minister for Local Government if he will arrange that the maximum discount of 30 per cent in urban areas for the sale of dwellings under section 90 of the Housing Act, 1966 will be increased to 45 per cent as is the case in rural areas.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 96 and 97 together.

In tenant purchase schemes made under the Housing Act, 1966, the purchase terms are designed to conform with the principle that in disposing of any property held by them in a corporate capacity on behalf of the local community, local authorities are obliged to sell at a fair and reasonable price. The fact that 80 local authorities have so far made schemes covering more than 70,000 houses and that already more than 12,000 houses have been or are in the process of being purchased by the tenants indicates general acceptance of this principle.

The concession of a maximum discount off the market or replacement value of 45 per cent in non-built up areas as against 30 per cent in other areas is intended to give an added incentive to people in isolated areas who might not otherwise do so to buy their houses. I consider it only fair that such people should get this concession.

The purchase terms allow for discount for the period during which the tenant has been in occupation of a local authority dwelling. The tenant is accepted as including the surviving wife or husband of a former tenant who succeeds to the tenancy on the death of the spouse. Where a tenant wishes to purchase jointly with another member of his family who normally resides with him credit may be allowed for the tenant's period of continuous tenancy. The same concession may be allowed to a son or daughter or other relative who is the legal representative of a tenant who has made a firm application to purchase not less than a month before his death. Apart from the question of disposing of public property well below a fair price, allowing further concessions to sons or daughters of deceased tenants could give rise to abuses and it is not proposed therefore to alter the existing arrangements.

Can the Minister state what constitutes an isolated area for the purpose of the concession?

That is a separate question. If the Deputy wishes me to outline for him the areas that qualify for the higher rate, he will have to table a separate question.

In broad terms, does it refer to isolated cottages or to groups of cottages in isolated areas?

It refers to isolated cottages or to groups of six or fewer cottages in rural areas.

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