Ceisteanna – Questions. - Housing Grants. – Dáil Éireann (29th Dáil) – Thursday, 28 Nov 2002

Ceisteanna – Questions. - Housing Grants.

Eamon Gilmore

Question:

2 Mr. Gilmore asked the Minister for the Environment and Local Government if he will reverse his decision to abolish the first-time buyer's grant; if, in view of the many representations made to him since 14 November 2002, he is considering a relaxation of the abolition; if he is considering allowing applicants for the affordable housing scheme or the shared ownership scheme to benefit from the first-time buyer's grant; his plans to extend eligibility for the first-time buyer's grant to house purchasers who had paid their booking deposits, but who had not signed a contract prior to 14 November 2002; his plans to introduce alternative measures to financially assist first-time buyers; and if he will make a statement on the matter. [24080/02]

Minister for the Environment and Local Government (Mr. Cullen)

The termination of the first-time buyer's grant announced on 14 November 2002 arose from the necessity, in the context of the 2003 Estimates, for the Government to ensure a sustainable match between expenditure and resources and to concentrate housing programmes on areas of greatest impact and social need. It is not proposed to review the basis on which the scheme was terminated or to reintroduce the grant.

In the context of the changes involved, the Government has sought to ensure fair treatment by ensuring that all applications approved or pending in my Department will, subject to the normal conditions of the scheme, qualify for grant payment. In addition, people who had already made commitments in the form of signed contracts or by the pouring of foundations on or before 14 November 2002 have been given an opportunity to apply for the grant. The position of persons approved for a new house under the affordable housing or shared ownership schemes is also being recognised. In providing a grace period up to 4 December for cases such as these, first-time buyers who are at the most advanced stage of purchase or building are being facilitated as far as possible.

The payment of a booking deposit which is subject to contract does not constitute a contract and is therefore excluded from the above arrangements.

Mr. Gilmore

Many people buying their homes need clarification on this matter. What does the Minister mean when he says those buying under the affordable housing and shared ownership schemes are being recognised? Does he agree that first-time buyers who have paid a booking deposit have shown a clear intent to purchase a home but have not signed a contract because their house has not yet been built – the Minister will be aware that very often houses are sold off plans – and will he not consider at least extending the first-time buyer's grant to them?

The Minister stated that there will be substantial savings to the Government as a result of the abolition of this grant – I understand it is approximately €40 million. Will he identify, specifically, which housing programme will receive that money? I cannot find a place for it anywhere in the Book of Estimates.

Mr. Cullen

I welcome the Deputy's questions. I have tried to make clear to all local authorities what I mean by affordable housing and the shared ownership scheme. Many projects around the country have already commenced. Most of the people to be allocated a house in a particular scheme have been so informed by the local authority and they are included in this scheme. I took the view that because the local authority is the contracting authority in this regard, the owner, who may not have all the internal documentation in his or her possession but who has been informed that house A, B or C is being allocated to him or her, is included in this scheme.

I will draw a corollary for the Deputy. I have allowed those who have only their foundations poured but who will complete a house within the next 12 months to be included also. Those who are involved in the shared ownership and affordable housing schemes are also included in the scheme. I am sure local authorities have the wit to work that out.

Mr. Gilmore

Does that include people who paid a deposit under the shared ownership scheme?

Mr. Cullen

Yes, because they are dealing with the local authority which is the contractor in a shared ownership scheme. I presume the paper work in that regard is in order and indications to my Department are that local authorities have cleared up this matter satisfactorily. Many questions raised by my colleagues have been satisfactorily cleared up for them in discussion with their local authorities. If the Deputy has any particular scheme to which he wishes me to refer I will undertake to do so. It is only right that those involved in such schemes be included.

I widened the scheme substantially from the cut-off point. Usually only those approved would be included in the scheme. I widened that to include those who had submitted forms but had not yet received approval. I went further and included those who had signed contracts and poured foundations. The scheme is extremely wide. We expect the number of extra applications received up to 27 November to be in the region of 5,500. It is indicative that everybody in the marketplace who wished to be included has been included. The money saved next year, as the Deputy knows, will be small – in the region of about €8 million – but indications are, on the basis of applications sent out and downloaded, that savings in the current year, if any, will be minute.

Dáil Éireann debate -
Thursday, 28 Nov 2002