Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 10 Dec 1975

Vol. 286 No. 8

Private Members' Business. - Ground Rents: Motion (Resumed).

The following motion was moved by Deputy G. Collins on 9th December, 1975.
That Dáil Éireann deplores the Government's inaction in relation to ground rents.
Debate resumed on the following amendment:
To delete all words after "Dáil Éireann" and to substitute the following:
"approves the Government's decision to prevent the creation of further ground rents".
—(Minister for Justice)

Last evening I was speaking about the people who were led astray in the hope that existing ground rents would be abolished without any responsibility for compensation. Many people have planted this seed in the minds of associations and others. The Opposition are not blameless in this respect because they have been going around saying that if they were in Government this and that would be done. This is hypocrisy because in 1964 the commission brought out a report which stated that further ground rents should cease but the Government took no action. In 1967 a Bill was brought before the House dealing with ground rents but no action was taken. Today we heard the pious platitudes of Fianna Fáil about new ground rentes which are being created and the great hardship they are causing. Fianna Fáil in Government had the opportunity to do something about this but they failed miserably. They now come here with a motion deploring the inaction of the Minister because he did not bring a Bill before the House.

Some time ago the Minister indicated that a Bill would be brought before the House to deal with this complex problem. He did not run away from it as the Opposition did when they were advised to take a certain course of action. The Minister tackled the problem and is bringing a Bill to deal with the cessation of new ground rents before the House and to make it easier to purchase existing ground rents. Ground rents are reasonably easy to purchase now but what made them hard and awkward before was the cost of conveyance. The Minister said in his brief yesterday that his Bill will make it much easier.

This is very important. We should stop this time wasting. The Opposition have three hours a week for private members' time. It is a complete waste of time to bring in this motion when the Minister has announced that he will bring in the Bill as quickly as he can. As I said, when Fianna Fáil were in Government they did nothing about this and if they were in Government today they still would not do anything about it. Of course it is their own time they are wasting. If they looked at their record they would be very slow to deplore what is being done by this Government. They could say "We accept the Minister's good faith and will await the Bill he proposes to bring into the House" but no, we have to go through the rigmarole of a vote at 7.30. They talk a lot about the jamming legislation coming through the House but this was the result of their filibustering tactics during the summer, and now we are getting a three-hour debate on ground rents.

We might surprise the Deputy this time.

Anything Fianna Fáil do would surprise me because their record is not good. Deputy Andrews made a great issue of rates. In 1972, a White Paper was issued which said it would cost a further 12½p on tax to eradicate rates. The Opposition again ran away from this and said it could not be done. In our 14-point plan we brought out the concrete suggestion to ease the rates burden. We are doing this. Fianna Fáil then made a death bed confession on rates a few days before the election, and they have been beating that drum ever since. Never once have they put forward constructive arguments and costs for this plan. As far as I am concerned, their statement on rates is like their attitude on the ground rents over the years. They had the opportunity when they were in power and the commission spelt out clearly what could be done, but they took no action. Regrettably they now come in here deploring the efforts of this Minister.

If they want to do that that is their business. If they want to waste time they are entitled to do that. Ground rents have been a problem over the years and have exercised the minds of many people who felt it was contrary to social justice that people should be subject to this extraction of money once a year.

The Government are not in power three years but they are now eradicating the future creation of ground rents. They are also making it easier to purchase existing ground rents. There was a rumour going around that all ground rents would be done away with. An Opposition spokesman last night admitted that this could not be done. People have constitutional rights and we have to honour them. We can be quite clear that the action the Government are taking is the only action that can be taken.

When one considers the activities of the Department of Justice over the last three years and the pressure the Minister has been under, the legislation he has brought out and the legislation we are looking forward to, one realises the great work he has done. I was on the committee on family law. This is an excellent piece of legislation and there is more to follow. We have the Criminal Justice Bill, which is being opposed by the Opposition. The Minister must be complimented on his performance. I certainly could not let this occasion go without complimenting him on his achievements over the last three years.

Deputy O'Brien said that Fianna Fáil were wasting the time of the House by putting down this motion deploring the Government's inaction in relation to ground rents. I am quite prepared to leave it to the voters in Deputy O'Brien's constituency to say if there was any action by the Government on ground rents and to let the people decide if Fianna Fáil, in consultation with many people in Deputy O'Brien's area, were wasting the time of the House.

Ground rents are a problem, have been over the years and, in view of the Government's inaction, will be a problem for some considerable time. What are ground rents? The Oxford Dictionary describes them as the rent paid to the owner of land which is let for building upon. These words illustrate the root of the problem and the agitation for its removal. Most people in the country, especially young people, when buying a house, which is probably the largest single transaction in their lives, feel that in paying such a large sum for their houses, the least they are entitled to is the piece of land on which their houses stand. They save for years for a deposit on their houses. Those who are lucky enough to be at work in the present situation find this a very difficult thing to do. When they have secured their deposit and placed it on the house of their choice they commit themselves to the burden of a mortgage, which must be repaid, over 25 or 30 years. Even then those people still find they are paying a rent on the land on which the house is built for the rest of their days to somebody they never see. There is no greater classic example of barren taxation than the ground rent system. It involves paying for something for which there is no return.

It was something similar to this which caused the Boston tea party. I am not suggesting that we are in for a situation like that, but with the feeling of revulsion that is building up among the people against this system I do not know exactly what the future holds.

What is the solution? When discussing ground rents one discusses them under two headings, future and existing. Fianna Fáil have been pushing the Government for some action on this question but without result. It was after various unfulfilled promises, various motions and questions in the House, at local authority level and other levels and after the local elections of 1974, when Fianna Fáil came out with their Local Government policy statement, "A policy for adjustment, advancement and reform on all fronts in the local community"—in this document we quoted our proposal with regard to future and existing ground rents—we decided to put the motion which we are debating tonight, before the House. It reads:

That Dáil Éireann deplores the Government's inaction in relation to ground rents.

At this time every Tuesday when Fianna Fáil put down a Private Members' motion about some particular section of Government business the Government table a meaningless amendment. We had it a few weeks ago in relation to Verolme dockyard and they did the same last night. The Government's amendment reads:

To delete all words after "Dáil Éireann" and to substitute the following:

"approves the Government's decision to prevent the creation of further ground rents".

This is a meaningless amendment. The Government are asking us to approve their own inaction.

Let us examine the record of the Government on their decision. As I understand the parliamentary system in the country a Government decision is in black and white when legislation is produced on a particular subject. We have seen no Bill on ground rents. We have had many headlines and many statements but we have seen no proposals to take firm action. As is typical of all Departments in this regime there are many press conferences announcing proposals but we very rarely see them in black and white except the type of legislation which was being discussed prior to this motion.

During the Minister's contribution last night he informed us that it would be relatively easy to draft a Bill banning future ground rents but the delay is because he wants to include in it extensive landlord and tenant legislation amendments to it. I ask for a simple Bill to ban future ground rents. I do not want the Minister to get involved in the detailed sphere of landlord and tenant legislation at the moment. Let us consider the specifics of future ground rents. The Government promised over 12 months ago that they would bring in this legislation on future ground rents. The Minister for Local Government has told us that approximately 25,000 houses were built in the country but I am not convinced of these 25,000 houses. It would be a rash man who would admit such a number of houses were built when one sees the unemployment figures in the building trade, the decrease in the hardware and the builders' providers employment. Even allowing for all those things and going on the Government's figure of 25,000 houses built over the last 12 months and assuming that about 8,000 of these were local authority houses, we are left with 17,000. Assuming that 25 per cent—and that is a large percentage—of those were not subject to ground rent it means that while the Government delay over the introduction of this simple Bill banning the creation of future ground rents, in the past 12-month period, using Government figures, over 12,750 new ground rents were created, an appalling figure. I heard the previous speaker lauding the Minister for Justice on his efforts in regard to legislation and his promise regarding future ground rents, but while the Government wait and promise what happens the unfortunate young couples buying homes? The Government are nearly three years in office and in the last 12 months alone nearly 13,000 new ground rents were created. How can the Government, without blushing, table the amendment before us, never mind vote for it as they probably will later on?

Speaking yesterday the Minister gave no date for the introduction of the proposed legislation, which means that the figure of nearly 13,000 that I have given is increasing every day. At the same time Government backbenchers compliment the Minister on his action. What action? An empty promise on which we have seen no performance. Meanwhile, anybody buying a house in a housing scheme—and most of them are subject to ground rents—is being committed to £20, £25, £30 or more annual ground rent for the rest of his days.

Delay in introduction of this legislation has had a secondary and equally unsatisfactory effect in that many decent people in expectation that the legislation would include relief of existing ground rent payers have been withholding payment of ground rent and have been brought before the courts. I am talking of people who in normal circumstances would never come in contact with the procedures of law other than as, perhaps, jurors or as witnesses on behalf of the State. It is appalling that because of Government inaction and a feeling of uncertainty due to being left in mid-air by the Government they should find themselves in this situation.

I do not agree with the Minister's statement yesterday that as a matter of policy he was not in favour of the abolition of existing ground rents, but at least it has clarified for many people their position in regard to existing ground rents which they have been withholding and thereby coming into confrontation with the law. Final clarification of the question of the Government's intentions regarding existing ground rents can only come when this long-promised legislation is introduced. The Minister emphasised yesterday that he could not give a date for the introduction of the new legislation, but I appeal to him and to the Government for the sake of the people to introduce the legislation, let us see what is in it and let the people know where they will stand for the future.

In 1967 Fianna Fáil in Government introduced legislation which was intended to allow ground rents to be easily purchased. In practice, as is often the case with legislation, it was found to have certain defects in regard to the legal costs involved in the purchase of ground rents. I hope the new legislation will include a section which will drastically reduce this problem. We found that the legal costs have been greater in many cases than the accumulated value of the ground rent no matter what the number of years was and whether it was an individual or a group scheme promoted by a residents' association. It was never intended in the original legislation that legal costs should be so disastrously high but it turned out this way, and I hope the new legislation, whenever introduced, will include a section to reduce drastically the legal fees involved. It seems ridiculous to have to suffer perhaps £150 in legal fees to buy out a £20 ground rent. That is not unusual, but rather a regular occurrence.

The legal profession tell us that buying out a ground rent involves nearly as much work as buying out a house. I cannot understand that but, being a layman, I am not party to the work of the legal profession. I appeal to the Government to ensure that something will be included in the new legislation to reduce drastically the legal fees involved in the purchase of ground rents. Even if that were done you still do not grasp the nettle, the abolition of existing ground rents. That will remain until some Government decide to abolish them by some method and until then you will have legitimate agitation and bad feeling about the payment of this barren tax.

I am aware of the constitutional difficulties involved; they have been argued on both sides of the House. I am prepared to take the legal advice we get that to remove them at the stroke of a pen would go against the property rights written into the Constitution. Our great safeguard is our written Constitution. Unlike the British with their unwritten Constitution we have a document which guarantees and protects the rights of all citizens. You may not like ground rents but they are a property and the Constitution says that we cannot deprive an individual of property. Consequently, we must protect that right within the Constitution. But some Government must produce a solution to the constitutional difficulty. This Government have a responsibility to use all the legal expertise available to them in the civil service and courts to devise a scheme that will get around this constitutional difficulty. With the combined brainpower of the civil servants in the Department of Justice and in the Attorney General's Office and other legal minds I have no doubt that such a scheme could be devised. It could be done in many ways, and one way we have suggested is by the setting up of a board similar to the Land Commission. I would ask the Minister to consider this suggestion because such a board could resell the ground rents over a three or four year period with minimal legal costs to the tenant.

Fianna Fáil have not held up any legislation relating to the reform of the ground rents system although such an accusation was levelled at us earlier by Deputy O'Brien. On the contrary, we urge the Government to bring in the legislation necessary without further delay. All that is required is a simple Bill to prevent the creation of future ground rents. The Minister has admitted that there would be no drafting difficulties involved in such a Bill. It would prevent the present position of ground rents being created every day. This would be a first step, and if it is introduced together with the amendments to the 1967 Act that we have been promised, we shall give them careful consideration and a speedy passage through the House because we are very conscious of the burden that is being placed on property owners by the present system. Together with the savage rates the ground rents are imposing a big burden on people.

Prior to the last general election one of the promises of the Coalition parties was the abolition of ground rents and they told us, too, that rates would be reduced dramatically by reason of the transfer of health and housing subsidies to central funds. These promises, like the others, have been unfulfilled. In my country at the time of the general election the rate was about £5 but in the three years since then it has increased to almost £10.

Despite what Deputy O'Brien says Fianna Fáil were not wasting the time of the House in putting down this motion. If our action in this regard results in the speedy introduction of the necessary legislation by even one day, the exercise will have been worthwhile. Is it not hollow, to say the least, for a Government Deputy to compliment the Minister on his inactivity in this sphere and then to accuse Fianna Fáil of wasting the time of the House? Is it not hollow, too, for the Government to table an amendment to the Fianna Fáil motion to the effect that they approve the Government's decision to prevent the creation of further ground rents while having allowed the creation of at least an extra 13,000 ground rents during the past twelve months? I call on the Government to withdraw their amendment, to allow the Fianna Fáil motion to stand and to let us have the promised legislation before any more damage is done.

Apart from any financial consideration of this question of ground rents there is the consideration that inherent in every Irish person is the wish to own the plot of ground on which his house stands. While this may be a trait that can be traced to mediaeval times it is still prevalent. The people are clamouring for an end to the system of ground rents so that no more of those can be created and that opportunity be given for the purchase of existing ones. This is a laudable ambition. The matter is not one on which to score political points because the people are united on this question. Therefore, I urge the Government not to delay any further in bringing forward the necessary legislation. For our part we will give any such legislation a speedy passage if, on examination of it, we are satisfied with it.

Some Members on the Government benches have accused us of doing nothing in relation to this issue while in government. That is not true. We introduced legislation although this has proved not to have been the ideal legislation. It is easy to be wise in hindsight, but the Government should be able to benefit from our experience and to bring in suitable and adequate legislation to deal with the situation. The desire to own the small plot of ground on which one's house stands does not mark one as a capitalist. Some of those people on the other side of the House who speak so often about socialism are as anxious as we are for the abolition of the ground rents system.

The present system is iniquitous. It is galling to read in the daily newspaper notices of sales of ground rent. In these cases it will be found that the householder is not in a position to purchase his ground rent because he could not afford to buy the ground rents of a whole block. On a personal level I recall receiving a letter informing me that such a person was my new ground landlord and that in future the rent would be paid to him. I had been paying my ground rent until then to a very old firm of solicitors. I regarded the system as being a remnant of the past. These people may have been antiquated in relation to the decor of their premises but they had some very forward ideas on how to make money quickly. I presume the person who bought my ground rent paid them quite a sum of money. I have to pay him until such time as the Government bring in new legislation. The ground rent is not very much but I object to it on principle. The person makes money out of the fact that I cannot escape payment and if I refuse to pay I will be taken to court and the person will obtain a decree. Many families have withheld their ground rents and now they are facing court proceedings. I appreciate their feelings but I wonder if withholding the rent is the answer.

If the Government are aware of their duty to those who are aggrieved, is it not better for them to bring in legislation to remove the burden of ground rents? If the Government are convinced, as they must be, that an injustice is being done to thousands of families it is their duty to remove that injustice. I know that many people, even some widows, are living on the income they receive from ground rents and I have no desire to punish them but we must have equity in our legislation. It is unjust to force a person to pay ground rent simply in order to make up the income of someone else. However, if a widow has only that income on which to rear her family and if the Government decide to end ground rents, it is the duty of the State to ensure that that widow and her children are not left penniless. In any legislation on this matter there must be a provision that will ensure that hardship is not transferred from one party to another. Like peace, justice is indivisible and there is no point in introducing penal legislation that removes the burden from one person and puts it on another.

The Government have plenty of advisers to help them in this matter and if they wish we will give them the benefit of our experience. With the benefit of hindsight they can see the faults in our legislation and they can introduce a new charter to abolish ground rents. In some countries all the land is freehold and this should be our aim. I do not think it will cause the parliamentary draftsman much trouble to devise some enlightened legislation.

Some people say that ground rents are not legally payable and others say it is a matter of prescriptive rights that have grown up in the last five hundred years. Some of the largest ground landlords in the city can trace their ancestors back to the Norman invasion. Anyone whose family has owned land since 1169 has done well out of it and it is time for a change.

There have been instances where people have bought land and built houses on it, who have claimed that in order to reduce the price of the houses a ground rent is charged. The purchaser of such a house may take out a mortgage for 35 years with a building society, an insurance company or with the local authority, and after that period they have paid for their house. However, a ground rent must be paid forever, and this is where the iniquity comes in. When the lease expires the ground landlord can redraft the lease and increase the rent.

In this House we boast that we are the supreme legislature apart from the Supreme Court but I regard ground landlords as the real planning authority. Some time ago Dublin Corporation had to sell ground rents in a choice part of the city and they were sold for a nominal amount. The person who bought the ground rents could dictate what would be built on the land. If it was proposed to build a cultural centre the landlord might say that there was no money in culture. He might insist on an office block of 300,000 square feet where he could impose a ground rent that would give him and his family an income for the rest of their lives. A ground rent for one person may be as low as £2 a year, but there is a principle involved.

We must also consider the large speculator who owns many acres of land. Up to a few years ago there was a rather peculiar situation in Dublin with regard to land reclaimed from the sea. The ground landlord owned land as far out as the tide and the more the local authority reclaimed land the more was given to the landlord. The ground landlord I am thinking of in this matter can boast that his ancestors go back as far as 1169.

There is every case for the abolition of ground rents. Fianna Fáil did not put down the motion merely to embarrass the Government or to make public heroes of ourselves. We did it because we consider there is a real social problem here, and this feeling is shared by many Deputies on the Government side. It is shared by the Irish people in general. Therefore, what are we waiting for? We on this side of the House did bring in legislation when we had the power to do so. Because of a fortuitous happening we are not in power any longer. I hope the Government will accede to the wishes of the people and will not hesitate further in regard to introducing the necessary legislation. The longer the Government delay the more ground rents are being created and the more difficult it will be to abolish them. I hope that in the present session or in the next session of this Parliament the Government will introduce legislation for which they will receive the benediction not just of the Fianna Fáil Party but of the Irish people in general. Apart from the monetary consideration, there has been an ancient battle in this country that people should own the plot of ground on which their house is built.

Deputy G. Collins' motion has been explained in great detail by him. There are some public representatives in this city and throughout the country who are attempting to organise people and bring them into conflict with the law. They are playing politics with people. This is not true of the Fianna Fáil Party. This motion was put forward after much consideration. We are aware of the social evils that exist in this city and country arising from developments such as ground rents. There is no question of our playing politics, such as are being played by many local public representatives at present and one or two in particular in this city. I will not mention their names because I will not give them further publicity. Perhaps that is what they would like. They have brought into conflict with the courts a number of responsible people who are now at risk in many ways because of the orders that have been obtained against them. It is our desire to ensure that the end product is a satisfactory one. If it is achieved it will meet the wishes of the people who have been drawn into conflict with the law.

There is a way other than conflict with the law. It is the sensible way. It has been fully explained by Deputy Collins and other speakers. Right minded people will take the solid and responsible approach. The Minister for Justice over a period, in common with many other Ministers, has made statements to attract the attention of the people. The subject of ground rents was no exception. We heard from the Minister and other members of the Government of their efforts to deal with this very pressing problem. There has been no contribution from the loud-mouthed individuals who, for the purpose of cheap politics, have endeavoured from time to time to project the idea that they are the people who are working in this regard. One would have hoped that backbenchers and supporters of the present Government would have come forward and supported this motion.

The Minister has made quite a number of noises to attract public attention but lip service is no answer to this problem. Active service by way of a Bill that will ensure the changes necessary to meet the wishes of the great bulk of people is what is necessary. There are of course constitutional and financial difficulties. The first step must be taken and taken at a very early stage to simplify the legal procedure in relation to the purchasing of ground rents. One would have hoped that the Government would have come forward with a Bill to prohibit the creation of new ground rents. When we have extensive building programmes and high housing targets the number of new ground rents being created must also be very high. I am sure it is the desire of this Government, as it was of the Fianna Fáil Government and will be of the next Fianna Fáil Government, to step up housing development. The Minister for Local Government speaks about 25,000 houses per year. I hope the target is met and exceeded, but in the provision of those houses there are new ground rents being created. The time is ripe to make an effort to ensure that new ground rents will not be created. Deputy Moore dealt with the development of and the income from office blocks.

The Minister must give a clear indication that this legislation will be introduced at an early date. We have listened to promises for too long: we must have action to test the sincerity of the Government, and the Minister, on this issue. If legislation is not introduced in the near future we will know that the Government were playing politics with this issue just as they have played politics with prices, health, equal pay and other matters.

The Government must produce the goods if what is termed as a social evil is to be terminated in relation to new dwellings. A simplification of the procedure in relation to old dwellings, and the problem of legal costs, must also be dealt with. This must be carried out now. We have had many promises in this regard also. In relation to Deputy Collins' motion the Government adopted their usual gimmick in relation to Private Members' Business by putting down an amendment to distract attention and to endeavour to colour the situation in another way. The Government should not have had any hesitation in accepting this motion in its entirety. However, the flak went up in the form of the amendment to take from Deputy Collins the credit that was rightly due to him for asking the Minister to get on with the job of preventing the creation of ground rents on new houses.

The arguments put forward in favour of the retention of ground rents are many and varied—good estate management and the maintaining of amenities. However, we all know that in most cases the residents or the local authority maintain the amenities. Why should residents have to pay a ground rent? It is not enough for a ground landlord to put a coat of paint on a gate and say that he has fulfilled his obligation. It is not enough for a ground landlord to cut the grass on one side of a road and say he has fulfilled his responsibility. I have seen bad estates and bad houses subject to ground rent.

I should like to see the question of the maintaining of amenities more clearly defined. To some landlords amenities means very little. While they are sunbathing in Spain or at some of the continental resorts the residents on their estates are in great difficulty over the amenities they are obliged to maintain. These people are receiving money under false pretences and many of them have been guilty of inaction in relation to amenities. We should be told more about estate management and the maintaining of amenities, because in many parts of the city amenities are non-existent and good estate management is a joke.

Some ground landlords are only too happy to see houses in decay. Deputy Moore has indicated the type of people I am talking about and the methods they use in relation to property which is deteriorating. Once property is classified as a dangerous building it has to be demolished but the land becomes a very valuable commodity. Landlords who are also ground landlords have deliberately allowed housing to deteriorate to the point where demolition takes place so that the value of the land increases. They do this because it is possible to obtain planning permission for flat development, garage development, hotel development or the erection of office blocks. If one drives around the city one can see the vacant sites, the old houses and the houses in bad condition. When a local authority moves into an area vast development takes place at great cost to the ratepayers and taxpayers, but an individual derives the benefits from that development in the form of ground rents. If this money were paid to the local authorities some justice would be done, but when it goes into the pockets of people who are in the Bahamas or some other resort or on a Mediterranean cruise, it is a different matter.

I understand the legal and constitutional problems, but with the vast amount of legal talent we have in the House, some kind of suitable legislation could be devised. We have Special Committees sitting at the moment and there is no reason why some such collective efforts should not be brought to bear on this. Deputy Collins said that every person who buys a house has a right to own the land on which it is built. It is wrong that some people by this device are able to accumulate substantial fortunes and have done so in the past.

As I said earlier, I am sorry the Government saw fit to put down an amendment. It is an effort to divert attention from the real problem. The motion, like others, was put down in good faith to project a social evil and I hope the Minister will take some definite action in the near future.

I will be very short in the three minutes I have. All in the House are of the view that the creation of ground rents in future should not be allowed, that persons who are owners of houses should be owners of the land. I should like to express a view on this.

Loose words have been used that ground rents created in the past have been immoral. I do not subscribe to that. It is very wrong that the view should go from this House, that the statement should be glibly accepted. I strongly dissent from it. Basically, the creation of a ground rent has been a right to property by the owner, and in the past the ground rent was usually let to somebody who carried out development. That is the distinction between a ground rent and a profit rent and it has been confused by some of the contributors to the debate. Whenever we get into the realm of property in this country there are always great difficulties in effecting reforms. We have had it in many fields and it will continue in regard to property.

For the benefit of a lot of people, and the House, I want to highlight one fact. Basically, the reason for the creation of ground rents very often arises as a result of legal advice given to builders by their lawyers, and it is in the nature of a convenant attaching to a leasehold interest. If you retain a rent on property you can impose both a negative and a positive covenant which will protect fellow owners, other householders on the estate. You can bind people by a positive covenant to do something for the betterment of the estate, but if you give absolute ownership of land on which the house stands, sometimes you are giving the freehold estate of the land and you cannot have a positive covenant attached to that except just to last the lifetime of the first owner. It cannot continue down along the line to successors, whereas a negative covenant prohibits a person from doing something, and that can continue. That is the reason why this has been used in most development schemes in urban and semi-urban areas.

I must express very grave disappointment at the Minister's approach to the motion. With regard to the amendment, I regard it as a very cheap effort in the political sense. It is unworthy of the situation where there are many thousands of people involved and it must be understood for what it is, a political act, to use a phrase used by the Parliamentary Secretary to the Taoiseach, of trick-of-the-loopery to prevent a vote on the motion on the Order Paper in my name.

I am sorry the Minister is not here to hear me saying that his approach and the approach of the other two members of the Government side who spoke—one for three minutes this evening and the other for 11 minutes yesterday—holds no hope that I can see for the immediate introduction of legislation to prevent the creation of new ground rents, no hope for the many thousands who make a case for the abolition of ground rents in existence. The Minister and his party—Labour offered no speaker in this debate—by their contributions have given frustration, anxiety, dissatisfaction, disenchantment—a Bible-full of adjectives could be used—to the thousands of people affected.

I hope the Minister will soon avail himself of the opportunity to make an important announcement on this problem. He went to great pains to excuse himself on a personal basis and to say he never gave the impression to anybody that it was Fianna Fáil who were delaying the introduction of this legislation. So well he should. We never did. What we are doing is urging the Minister to bring the legislation to the House where we will give him an almost free run with it so that the Bill could be enacted in the shortest possible time. He is being assured of the full co-operation of the Opposition in this chamber.

Unfortunately, the Minister went to great pains in his statement to dissociate himself from members of his party and indeed from his Government colleagues. One member of his party and one of the other two who spoke, indirectly stated on a few occasions—I know I am not allowed to quote the unrevised record of what was said here yesterday evening— and gave the impression that if this back-up was not there, then this legislation could be brought in and dealt with. Again I want categorically to deny that that is the situation.

The Fine Gael Party members who participated in the debate showed no awareness of the many cases of hardship which are in existence. There is one case of which I have heard. I understand that I should not give the name or address. This gentleman purchased a leasehold interest in a premises from the former owner in 1953. The premises were in a very bad state of repair and the person who purchased them spent a considerable amount of money after the purchase and over the years in putting and keeping this old house in a habitable condition. The ground landlord at the time was the Vernon Estate. After the purchase the purchaser was promised a reversionary lease by the landlord's solicitor, a promise which was never carried into effect, and no good reason was given for the failure to carry it out. The ground and ground rent, in effect, the premises, were later sold over the person's head to another landlord without any notice to him, much less an offer from the estate to sell the premises to him as in all conscience should have been done. He bought the leasehold interest, spent large sums of money on substantial repairs and improvements, and even the Vernon Estate must admit that he was a model lessee.

The person was written to by his solicitor to the effect that he was treated extremely unfairly and unjustly. The few minutes left to me would not allow my quoting the solicitor's letter, but the gist of it is as I have just said.

This person has been engaged in litigation to defend his legal rights, to retain possession of his home, and his expenses up to the present time are in the region of £600. If the Minister had any sensitivity, any sense of urgency or, indeed, a sense of justice these legal expenses and unnecessary worry and hardship could have been avoided.

There is another problem that I should like to deal with briefly. It is what is known as the pyramid of interest type of case which causes extreme problems. People who try to buy out their lease find that the person who collects the rent has to pay it to somebody else and that somebody else has to pay it to somebody else and so on. I understand from people involved in such cases that because of the magnitude of the expenses and legal work involved they simply have to throw in the towel. There is a considerable number of such cases in existence. Here again the necessity for amending legislation is demonstrable.

A major step in facilitating the purchase of ground rent by householders was the 1967 Act introduced by my party when we were in office. Experience has shown that a major defect in the legislation is the question of legal costs. As the Minister is aware, the legal costs far outweigh the actual costs of purchase of ground rents and the question of title add enormously to the cost. The attitude of the individual landlords in relation to purchase also adds to the cost. In these cases the Minister must accept that means must be devised to reduce and even eliminate the burden of legal costs on individual householders.

During the past 12 months many landlords have attempted to dispose of their ground rents. Such a course of action is preferable in their view to attempting to collect rents from a public increasingly aware of the injustice that the ground rent system entails. Offers recently made include an offer to sell at five times the annual rent of £20, arrears to be paid in full and the costs included free. To substantiate what I am saying there is another example where the price was four times the annual rent of £18 payable over four years, arrears to be halved and the costs to be extra. In another case the price was 5.6 times the annual rent of £18, all arrears to be written off and costs fixed at £21.50 per house.

Following the issue of the recent National Loan at 14.6 per cent, the maximum legal limit for the purchase of ground rents covered by the 1960 Act is somewhat less than seven years purchase—6¾ per cent. It is now a buyer's market, and as a speculator will not invest in ground rents the leaseholders represent the only available outlet to a landlord who wishes to dispose of ground rents. As a result there was an offer made recently to sell ground rents at 4½ years' purchase free of legal costs to one residents' association in South County Dublin. Despite the inaction of the Minister and the Government parties are endeavouring to resolve their difficulties without encouragement or assistance from the Minister or the Government. This is laudable, but it would be better for all parties concerned if the Minister got down off the fence and positively encouraged such development.

These offers represent a piecemeal solution and can resolve only the more straightforward cases. They do not apply to old leases not covered by the 1967 Act or to cases where there is a pyramid of interest or a difficulty in relation to title. These cases must be covered by amending legislation. The failure to introduce such legislation over the last two-and-a-half years, despite many promises that the legislation was on the way, is the cause of much unnecessary hardship and expense to many householders.

I would like to propose that this House request the Minister for Justice to introduce immediately legislation prohibiting the creation of ground rents. I would also propose that serious consideration should be given to the setting up of a State agency with wide powers to supervise, implement and co-ordinate the extension of ground rents on premises occupied as a residence or as a combined residence and business. I would not object if this agency were the Land Commission with extended and appropriate powers. The agency could be funded by fees levied on the landlord and on the tenant or shared by them. It would be open to the landlord and tenant to negotiate the terms of sale between them. This is happening on a wide scale at present. The State agency would be used only in a minority of cases where the parties were unable to reach agreement. The agency should include in its membership one member who would have the background that would enable him to represent the specific interests and problems of the ordinary householder. The agency would have power to arbitrate and decide on all questions of title, costs, conditions and to register agreements. The protection of the Landlord and Tenant Acts of 1958, 1967 and 1971 should apply to all long leases irrespective of whether the lease is a building lease or otherwise. The time limit of 25 years within which ground rents can be purchased should be abolished.

Whereas the Minister held out no hope whatsoever for the many people involved in a movement for the abolition of ground rents, I should like to say to the Minister that the question of compensation should not prevent him from providing a solution to the problem and helping them with the legal costs involved. Many of the thousands who are at present agitating with the owners of ground rents would be only too delighted to be able to pay the moneys required of them, whether they have to buy out at four-and-a-half, five-and-a-half or six years the annual costs they are expected to pay. If the Minister and the Government do something constructive and worthwhile to help these people they would prevent unscrupulous individuals or extremists from encouraging them to take the law into their own hands and encouraging them to defy the courts.

Those who urge that type of action are doing those interested in ground rents a serious injustice. There are many reasonable and fair people involved in the ground rents association and not all of them are extremists. These people should be listened to. There is a very favourable climate of opinion whereby the Minister if he wishes can introduce the necessary legislation and, so far as this side of the House is concerned, he can expect the maximum co-operation to ensure the speedy passage of this Bill through the House.

It is unfortunate that because of a political trick-o'-the-loop that he is preventing us voting on the motion over my name in the Order Paper today.

Question put: "That ministerial amendment No. 1 be made."
The Dáil divided: Tá, 68; Níl, 66.

  • Barry, Peter.
  • Barry, Richard.
  • Begley, Michael.
  • Belton, Luke.
  • Belton, Paddy.
  • Bermingham, Joseph.
  • Bruton, John.
  • Burke, Dick.
  • Burke, Joan T.
  • Burke, Liam.
  • Byrne, Hugh.
  • Clinton, Mark A.
  • Cluskey, Frank.
  • Dockrell, Henry P.
  • Dockrell, Maurice.
  • Donegan, Patrick S.
  • Donnellan, John.
  • Enright, Thomas.
  • Esmonde, John G.
  • FitzGerald, Garret.
  • Fitzpatrick, Tom (Cavan).
  • Flanagan, Oliver J.
  • Gilhawley, Eugene.
  • Governey, Desmond.
  • Harte, Patrick D.
  • Hegarty, Patrick.
  • Hogan O'Higgins, Brigid.
  • Jones, Denis F.
  • Kavanagh, Liam.
  • Keating, Justin.
  • Kelly, John.
  • Kenny, Enda.
  • Kyne, Thomas A.
  • L'Estrange, Gerald.
  • Collins, Edward.
  • Conlan, John F.
  • Coogan, Fintan.
  • Cooney, Patrick M.
  • Corish, Brendan.
  • Cosgrave, Liam.
  • Costello, Declan.
  • Coughlan, Stephen.
  • Creed, Donal.
  • Crotty, Kireran.
  • Cruise-O'Brien, Conor.
  • Desmond, Barry.
  • Desmond, Eileen.
  • Lynch, Gerard.
  • McDonald, Charles B.
  • McLaughlin, Joseph.
  • McMahon, Larry.
  • Malone, Patrick.
  • Murphy, Michael P.
  • O'Brien, Fergus.
  • O'Donnell, Tom.
  • O'Sullivan, John L.
  • Pattison, Seamus.
  • Reynolds, Patrick J.
  • Ryan, John J.
  • Ryan, Richie.
  • Spring, Dan.
  • Staunton, Myles.
  • Taylor, Frank.
  • Thronley, David.
  • Timmins, Godfrey.
  • Toal, Brendan.
  • Tully, James.
  • White, James.

Níl

  • Allen, Lorcan.
  • Andrews, David.
  • Barrett, Sylvester.
  • Brady, Philip A.
  • Brennan, Joseph.
  • Breslin, Cormac.
  • Briscoe, Ben.
  • Brosnan, Seán.
  • Browne, Seán.
  • Brugha, Ruairí.
  • Burke, Raphael P.
  • Callanan, John.
  • Calleary, Seán.
  • Carter, Frank.
  • Colley, George.
  • Collins, Gerard.
  • Connolly, Gerard.
  • Crinion, Brendan.
  • Cronin, Jerry.
  • Crowley, Flor.
  • Cunningham, Liam.
  • Daly, Brendan.
  • de Valera, Vivion.
  • Dowling, Joe.
  • Fahey, Jackie.
  • Farrell, Joseph.
  • Faulkner, Pádraig.
  • Fitzgerald, Gene.
  • Fitzpatrick, Tom (Dublin Central).
  • Flanagan, Seán.
  • French, Seán.
  • Gallagher, Denis.
  • Geoghegan-Quinn, Máire.
  • Gibbons, Hugh.
  • Gibbons, James.
  • Gogan, Richard P.
  • Haughey, Charles.
  • Healy, Augustine A.
  • Herbert, Michael.
  • Hussey, Thomas.
  • Kenneally, William.
  • Kitt, Michael P.
  • Lalor, Patrick J.
  • Lemass, Noel T.
  • Leonard, James.
  • Loughnane, William.
  • Lynch, Celia.
  • Lynch, Jack.
  • McEllistrim, Thomas.
  • MacSharry, Ray.
  • Meaney, Tom.
  • Molloy, Robert.
  • Moore, Seán.
  • Murphy, Ciarán.
  • Nolan, Thomas.
  • Noonan, Michael.
  • O'Connor, Timothy.
  • O'Kennedy, Michael.
  • O'Leary, John.
  • O'Malley, Desmond
  • Power, Patrick.
  • Timmons, Eugene.
  • Tunney, Jim.
  • Walsh, Seán.
  • Wilson, John P.
  • Wyse, Pearse.
Tellers: Tá, Deputies Kelly and B. Desmond; Níl, Deputies Lalor and Browne.
Question declared carried.
Motion, as amended, put and agreed to.
Top
Share