asked the Minister for Local Government if, in view of the anticipated increased contract price for the 140 tenant-purchase houses of Dún Laoghaire Borough Corporation at Ballybrack, County Dublin, and the limitations of State grants available, he will sanction a tenant-purchase loan (repayment basis) in excess of £3,000 to mitigate the hardship which will be suffered otherwise by those obliged to place very substantially higher deposits.
Ceisteanna—Questions. Oral Answers. - Ballybrack (Dublin) Purchase Houses.
84.
The statutory limit applicable to house purchase loans made by local authorities in the Dublin area is £3,000. In view of the fact that the prices of the houses referred to by the Deputy are lower than the general average prevailing for comparable houses in the Dublin area and of the special facilities which Dún Laoghaire Corporation provided free for the purchasers of these houses in placing and supervising contracts and in the general administration of the project, I am not satisfied that the making to these purchasers of loans higher than those available to persons purchasing houses in the open market would be justified.
May I put it to the Parliamentary Secretary that it seems likely, on the basis of information available within the Dún Laoghaire Borough Corporation, that these houses will now cost another £400 per house over the period of the contract under the prices variation clause. On that basis, surely he appreciates that these tenant purchase houses are being purchased by persons with very limited incomes and savings and that it will be quite beyond their capacity to pay £600 or £700 as a deposit? The matter is quite serious because some of these houses are now due for occupancy.
May I ask if the Minister has received a letter from Dún Laoghaire asking for the figure of £3,000 to be increased and, if so, what consideration he has given to that matter?
I cannot answer the second supplementary because I do not know.
It was sent all right.
With regard to the first supplementary, in view of the special facilities already given in the matters I mentioned, it would be hard to justify not having this purchase scheme as proposed. It will mean increased prices.
The Parliamentary Secretary has facilities open to him to give sanction as this is a tenant purchase house scheme on a notional repayment basis. If he were to sanction a price in excess of £3,000 he would get rid of a very alarming situation in which people might be obliged to opt out of tenant purchase and would have to be rehoused by Dún Laoghaire Borough Corporation in the near future at a higher cost.