——decided they would wait until such time as they had the requisite resources. But within the intervening period — as they will have endeavoured to put together the necessary finances — they will have found that the cost of the product, house or whatever, will have continued to rise substantially above the prevailing inflation levels. This will have meant that, three or four years later, having put those savings together, they were then further away from the possibility of purchase than they had been before. Therefore we said, "No. We will strike at it now. We will ascertain whether we can help such households achieve shared ownership".
The system is simple in the sense that one can purchase up to 75 per cent of ownership of one's house in the first instance. Most people referred to a 50 per cent ownership. We will accept that. The argument advanced by Senator Costello was that the value of the remaining part of the equity held by the relevant local authority should be withheld or stand still. What we have endeavoured to achieve is that that would rise, not in the way in which housing values might rise — the House will be aware how they can escalate from time to time — but would merely keep pace with the value of money. People will be in a position to own the full house. They will have the option of selling the house. It is important to put this into some overall financial context.
I did not have the opportunity a few minutes ago to refer to references to earlier housing developments nationwide. The fact is that this year I have to find £200 million within my Department to meet the loan repayments on commitments entered into over time by local authorities nationwide. That money has to be found. When it comes to making provision for doing more than that, one has to find the necessary resources and take them from somewhere.
We are endeavouring here, in line with what is happening in other countries — with an exceptionally good experience in the North — to introduce an innovative scheme. Indeed, I might compliment local authorities and elected representatives who are putting their full weight behind the implementation of this scheme. I regret that its implementation is not even nationwide. There remain some local authorities who are reluctant to implement its provisions. I want to encourage housing officers and elected representatives nationwide to see the wisdom of providing an opportunity for families or households who do not have any other choice available, who want to own their homes but have not the requisite financial resources to enable them to do so. If they are to wait until such time as they have the requisite savings the likelihood will be that the gap between them and the purchase of their homes will be even greater. We are bridging that gap.
Senators, and Deputies in the other House, will realise that, even though we had arguments about amendments, we are dealing with amendments which have been lifted almost in their pure form from those before the other House which were rejected there. Therefore, in one way, I suppose one could contend the Seanad is not placed at any greater disadvantage than the other House in that context. But in neither House was cognisance taken of the fact that we provide a rental subsidy under this scheme which helps eligible applicants and new co-owners of houses in the rental cost of that part of the equity they have still to purchase.
Much consideration has been given to ensuring that the scheme will work. I am delighted to see the nationwide response to it, although I should like it to be greater in some places. But already, at this point in the year, a few local authorities have expended their full financial allocation for this purpose. They have put a determined push behind the provisions of the scheme. Clearly it is working. In the light of experience any technical or other legal difficulties that have arisen on the part of local authorities have been remedied in this Bill, thereby freeing up the scheme for quicker implementation throughout the country.
I can assure Senators that the shared home ownership option while not being the only solution meets a particular need. It is designed for a particular category of households, people who have no choice, who are unable to purchase their homes though they wish to do so. In this scheme we are facilitating such people to the greatest possible extent, very much in line with what has been the experience elsewhere.