Dáil Éireann debate -
Thursday, 13 Apr 2000

Vol. 518 No. 2

Adjournment Debate. - CIE Land Disposal.

Mr. Quinn

The Minister for Public Enterprise, Deputy O'Rourke, will be familiar with this case. There is a housing crisis throughout the country and there is certainly one for many of my constituents in the constituency of Dublin South-East, who cannot purchase houses at a price which relates to their income. In response, a number of public representatives, including the Minister of State, Deputy Eoin Ryan, and, I took an initiative some years ago to form a local housing association to procure affordable housing for people from the locality.

To date, we have succeeded in constructing 55 dwellings and application for planning permission has been made for another 45. The price per unit of the last group of houses was £53,000 at a time when the relevant market price would have been closer to £100,000. The most recent group of 45 units will sell, subject to confirmation, at around £80,000 compared with a purchase price in the area of about £160,000. The people are vetted by Dublin Corporation and come off the housing list, and the Corporation gets the benefit of a consequential vacancy in its housing stock.

My net point is that CIE has a strip of land, parallel to the railway line at Serpentine Avenue, which could accommodate 14 dwellings. When contacted by the Ringsend Action Project, now the City Housing Initiative, to see if the company would make that land available for a price to be negotiated but which would not be the full market value because the initiative could not pay such a price, the initiative's representative was informed that this matter was something in which the Minister had taken a direct interest. The initiative was told that the company would require the sanction of the Minister to enable it to enter into direct negotiations with the City Housing Initiative to, first and foremost, by-pass the normal public tendering procedure which one would expect and to dispose of the properties at less than full market value.

In the light of the bona fides of this housing association, the track record of which is available in detail to the Minister, and having regard to the relative value of this property in the context of CIE's overall capital needs, I formally ask the Minister to authorise the board of CIE to enter into negotiations with the representatives of the City Housing Initiative for the purchase of the land at a below market price to be agreed and to enable the CHI representatives to proceed with application for planning permission for approximately 14 dwellings.

Minister for Public Enterprise (Mrs. O'Rourke)

First, a Leas-Cheann Comhairle and Deputies, I wish to apologise. I was working to the presumption that the business of the Dáil would conclude at 4.45 p.m. and I regret not having been present. Clearly the Minister for Justice, Equality and Law Reform, Deputy O'Donoghue was here. I am grateful to the Members for their understanding.

I am aware of the matter raised because the Leader of the Labour Party, Deputy Quinn, wrote to me on 23 March, and I replied and forwarded it to CIE. Earlier I was aware of it through the Minister of State, Deputy Eoin Ryan, who had spoken to me about the matter. I expressed an interest in it, but whoever said that I was going to direct it or otherwise was incorrect because I do not have the legal authority to do that.

I know of the housing association and I am aware of the fine work it has done. Some years ago there was a similar such organisation in Athlone, which was able to provide houses, cutting out many of the obstacles. As a result people, who otherwise would not have a home, are now living in these homes.

My understanding of Deputy Quinn's proposal is that the land would be sold at a price less than the full market value for use by the City Housing Initiative to build houses on the half acre site parallel to the railway line. The site was previously used as social housing for retired CIE employees. Of course, the motives underlying this proposal are entirely laudable, but I could not accede to it for a number of reasons. It would be inappropriate for me to direct CIE to sell property to an interested party – I have never done so since taking up office – even in the context of such a very good body doing excellent work. I know that when the Deputy's party was in Government he spoke to a Minister at that time – I do not know which Minister as we could not locate the correspondence – about this matter.

Mr. Quinn

It would undoubtedly have been Deputy Lowry, the then Minister.

Mrs. O'Rourke

While I understand that the board of CIE has agreed that the property can be put up for sale, I expect it will, in line with normal practice, be offered for sale by public tender and I would not interfere in that process.

I do not know if Deputy Quinn is aware that the site in question was the property of the CIE welfare association and that CIE has given an undertaking that half the sale proceeds will go to the association to assist it in the continuation of its charitable work with CIE pensioners and widows. Therefore, any reduction in the price secured for the land would result in a diminution of the contribution to the association.

We have engaged in an independent review of all CIE properties. The consultants have completed that work and have submitted a final report to me.

The net point is that this is a good organisation and a good initiative. However, any intervention by me by way of telling CIE how and to whom it should dispose of its property is a path I will not pursue as to do so would not be correct. I asked if the rights of the welfare association to half the sale price is legally underpinned, and apparently it is as there was housing for retired people on that land at one time.

I greatly regret that as of now I see no moving forward from the position as I have outlined.