(Cavan-Monaghan): In the time alloted to me I should like to deal with the Minister's amendment. It was amusing to hear the Minister of State talking about the country living beyond its means, about housing grants being given without regard to the means of the beneficiaries and about such grants being spent on sun parlours, playrooms and the conversion of garages. It was amusing to hear what he said having regard to the history of Fianna Fáil in relation to these grants.
Under the National Coalition Government of which I was a member reconstruction and new house grants were available subject to a means test which could be revised at any time according as the country could afford it. The record shows that in 1977 some 12,209 house improvement grants and 12,561 water and sewerage grants were paid to applicants who really needed assistance. The general election came and, in order to curry favour with the electorate, Fianna Fáil opened the floodgates and abolished the means test. They said grants would be available for new houses, for reconstruction and for water and sewerage services without regard to the means of the applicant. This was in line with their decision to derate without regard to the means of the rated occupiers and with their decision to remove car tax without regard to the means of the beneficiaries. As a result, in 1979 some 30,298 house improvement grants were paid at a higher rate regardless of the means of the applicants. The grants were paid to all and sundry, including the highest income groups in the country.
As the Minister of State has put on record, the grants were given in order to provide in many cases sun parlours and playrooms. They were given to provide for the conversion of garages and for the addition of other luxuries to houses already adequate for those living in them. It is interesting to note that between 1977 and 1979 there was no significant increase in the number of water and sewerage grants paid because the people who rushed in to swell the house improvement grant applications from 11,000 to 30,000 already had bathroom and toilet facilities in their houses.
Now two-and-a-half years after this Santa-like bonanza of grants for all, house improvement grants and grants in respect of water and sewerage facilities have been withdrawn completely. Now the most humble citizen will not get even £1 to help towards the cost of reconstruction, modernisation or the addition of bathroom and toilet facilities. However, grants for new houses continue to be paid to people with incomes of £15,000, £20,000 or £30,000. That is what the Minister of State calls redeployment of public funds. That is what he asks this House to welcome and approve.
It was disgraceful to withdraw grants when the number of local authority houses has dropped and when the average cost of providing a new house has risen from £12,234 to £24,065. It was a disgrace to withdraw grants that enabled the life of modest houses to be prolonged or to be converted to more comfortable dwellings. The price of a new house has put it beyond the reach of the average person. The stage has been reached when very many partially built houses can be seen throughout the country because the people cannot get the money to finance them. This is not a redeployment of finances. It is withdrawing grants that were available for many years to pay for money borrowed by this Government to implement the extravagant promises that got them into power.
The amendment put down by the Government, which I invite the House to reject, is in line with the budget that has shifted the burden of taxation from the better off to the less well off. That is exactly what has been done with regard to house improvement grants. These grants were available under the National Coalition Government on a regulated basis so that those in need of them would get them. In 1977 Fianna Fáil had to do something dramatic to get back into office and it was easy to offer grants to all and sundry. It was easy of offer to remove car tax and to derate houses irrespective of the income of the people concerned. Now we hear the Minister talk about the country living beyond its means, about giving benefits to people regardless of a means test.
The memory of this Government is very short. It was interesting to hear Deputy O'Donoghue saying here the other day that there is no change in policy, that it is the same policy that was introduced in 1977 and was being implemented all along. We have the Taoiseach trying to pretend that there was a change of policy. In order to demonstrate that, he abolishes Deputy O'Donoghue's Department and throws him out along with it. Then you have Deputy O'Donoghue coming in here and giving the Taoiseach what I think is a kiss of death by saying: "It is the same old party, the same old Government and the same old policy."
Whether new or old, this is a retrograde step. It attacks the less well off. It attacks small farmers who are not entitled to the benefit of the local authorities' housing lists, who cannot provide new houses for themselves, but who want to add water and sewerage facilities or additional bedrooms to make their homes more comfortable. They are not to get a penny. The grants that were enjoyed for several years are being withdrawn. This is a tax on people who buy their houses from the local authorities and in that way save local authorities the cost of repairs. If they then want to add some comfort to the houses they have got they will not get one penny.
The Minister tells us he has increased the loans. He has, but if people want to avail of a small loan to do these repairs it will cost them at least £10 a week over 30 years and that would only cover modest repairs. The Minister expects to be clapped on the back for that just as he expects to be complimented for his £12,000 loan which will cost £35 a week, which may surprise Deputy Flynn.
I condemn the withdrawal of these grants as a retrograde step when new houses are beyond the reach of citizens and at a time when the Government should be encouraging people to improve existing houses and prolong the life of them. This is not a deployment of resources but a withdrawal of resources from the needy and a continuation of the policy of providing resources and grants to people in the upper income group who could do without them.