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Dáil Éireann debate -
Tuesday, 1 Jul 1986

Vol. 368 No. 8

Ceisteanna—Questions. Oral Answers. - Ground Rents.

16.

asked the Minister for Justice if he will introduce legislation to terminate ground rents; and if he will make a statement on the matter.

The Landlord and Tenant (Ground Rents) Act, 1978, effectively prevented the creation of new ground rents on dwelling houses and this was followed by a second Act in the same year (the Landlord and Tenant (Ground Rents) (No. 2) Act) which had the declared purpose of providing a low cost purchase scheme which would lead to the termination of existing ground rents. The No. 2 Act, which had a life of five years to 31 July 1983, was extended, subject to increased fees, for a further year in 1983. In 1984 the then Minister for Justice promoted legislation which was enacted by the Oireachtas and which extended the life of the special purchase scheme for a further three years up to 31 July 1987, again with increased fees. As was stated in reply to a question in this House on 13 December 1984, the enactment of that recent legislation represents the policy of the Government in this matter.

Have the Government seriously considered the constitutional aspects of ground rents? I understand the Government's position has been that it would be unconstitutional to terminate or abolish ground rents. Have the Government examined this question? Since they do not allow future ground rents they obviously find something wrong with the whole ground rents system. Can they come up with a suitable amendment to the Constitution to make the abolition of ground rents constitutional?

That matter has been considered by the Government and has been discussed in the House on a number of occasions. My predecessor made it clear — and I share his view — that existing ground rents can be terminated in one of two ways, and there are only two ways. One is by purchase and the other is by confiscation of the ground landlord's property. My colleague again made it clear, and I agree entirely with his view, that confiscation would be wrong in principle and I refer the Deputies to the Second Stage debate on the Landlord and Tenant (Ground Rents) (Amendments) Bill, 1983, on that point.

Is the Minister aware that this month there are over 400 cases coming before the courts in relation to ground rents. People just see ground rents as a fuedal rent with no justice in them and are refusing to pay and coming before the courts. Will the Minister tell us if he is seriously considering the matter? It is not a question of confiscation but simply stating that as and from, say, 1988 ground rents will cease to be. Can the Minister say how that would be unconstitutional? If it is, why could he not put an amendment to the Constitution before the people that would allow the termination of ground rents?

Deputy Daly has been sitting here all this time.

I am asking the Minister a question. There are 400 cases coming up this month. It is a very topical issue and I am sure that the Minister must be aware of it.

Deputy Mac Giolla is being unreasonable. He is making a speech.

I am asking the Minister if he has given serious consideration to these 400 cases coming up now and has he considered what measures the Government could take to alter the stance which has been there now for years and has not worked?

I can only repeat what I have already said. As far as existing ground rents are concerned there are only two ways in which they can be terminated. One is by purchase, and we have provided a scheme under which they can be purchased. The other is by confiscation and we reject the road of confiscation not simply because of the implications it would have in this area but for the far more general implications it would have.

The Minister has not explained confiscation.

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