I move:
That a supplementary sum not exceeding £5,500,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1990, for the salaries and expenses of the Office of the Minister for the Environment, including grants to Local Authorities, grants and other expenses in connection with housing, and miscellaneous schemes, subsidies and grants including certain grants-in-aid.
The Supplementary Estimate is required to meet increased expenditure on two subheads of my Department's Vote. The two subheads are D.2 and M which cover expenditure on private housing grants and recoupment of expenditure incurred by local authorities on the operation of local motor taxation offices, respectively. The gross extra expenditure of £12.325 million is reduced by £6.825 million savings on other subheads giving a net additional requirement of £5.5 million. The savings arise on the mortgage subsidy scheme, on the grant to the Housing Finance Agency, on recoupment of certain malicious injury costs to local authorities and on the payment of the subsidy in respect of loan charges relating to capital loans raised by local authorities.
An additional £11.59 million is required to meet liabilities for the payment of grants under the house improvement grants schemes which were terminated with effect from 27 March 1987. Grant approvals under the 1985 house improvement grants scheme amounted to over £260 million. By the end of this year, my Department will have paid out about £200 million in house improvement grants since 1985. Applicants who had work approved for grant purposes prior to 27 March 1987 were given over three years to complete the work. Final termination of the 1985 scheme took place on 31 May this year, by which date all grant-aided work had to be completed and written claims for payment submitted to my Department. The rush of applications for grant payments to beat the deadline, and my personal commitment to ensure that these grants were paid as speedily as possible, has made it necessary to increase the overall 1990 provision for home improvement grants from £13 million to just under £24.6 million. These grants are paid from subhead D.2 of the Vote and the availability of savings on other housing grants, notably new house grants, has reduced the net additional requirement on the subhead to just over £10.3 million.
As we are now in the final phase of the 1985 house improvement grants scheme I think it is appropriate to give an overview of the scheme. The 1985 house improvement grants scheme was introduced in November, 1985 and provided generous grants for repairs, extensions, provision of chimneys, water, sewerage and bathroom facilities. However, even though the objectives of the scheme may have seemed to be desirable and valid at the time, one must express serious reservations about a scheme which provided such large handouts of taxpayers money for, often, non-essential work and to people who did not really need the grants. What was required was an improvement grants scheme which was better targeted towards need and which would not cause a huge drain on the Exchequer.
Indeed, in terminating the 1985 house improvement grants scheme the Government recognised the worth of a number of well-targeted and cost-effective schemes and decided specifically to retain the disabled persons grant scheme, the essential repairs grant scheme and the special task force for the elderly.
Unfortunately the vast sums of money which were pre-empted by the 1985 house improvement grants scheme severely restricted the resources which could be devoted to other necessary purposes across the entire housing area. Despite this, however, I am pleased that I was able to introduce earlier this year a modest, well-targeted, house improvement grants scheme, namely, the scheme for the renewal or repair of thatched roofs.
When the decision to terminate the main house improvement grant schemes was made in March 1987, every possible effort was made to ensure that nobody suffered hardship as a result of the decison. Each applicant who had an inspection before the termination date and had been found eligible under the scheme was issued with grant approval. In the end, approved applicants had over three years after the termination of the scheme to complete the work and qualify for grants.
Over 5,000 claims were received in my Department in the seven-month period before the final closing date. The additional funds for house improvement grants provided in this Supplementary Estimate will allow over 3,000 applicants to be paid in 1990 who would otherwise have to wait until 1991 for payment. Expenditure on the scheme in 1991 is expected to be minimal as only a small number of outstanding cases remain to be dealt with.
£2 million of the Supplementary Estimate is required for local authority expenditure on running motor tax offices. Subhead M of my Department's 1990 Vote includes £8.53 million in respect of the recoupment to local authorities of the full cost of operating motor tax offices in their capacity as agents of the State in registering and taxing vehicles. The additonal funds will enable all liabilities which mature for payment of this service in 1990 to be discharged in full. The increased provision of £10.53 million for the administration costs of motor tax collection represents 7 per cent of estimated total motor tax revenue of £151 million this year. I expect this percentage to fall over the next few years.
The bulk of the additional expenditure arises on wages and salaries, including overtime. Staffing levels in motor tax offices had to be increased this year to cope with the increased volume of work, due largely to the introduction of the European Communities model driving licence in November, 1989. The new driving licence incorporates a number of security features which substantially increased the processing time for each licence. The workload will be reduced in 1991 when, because of the number of longer-term licences which have been issued, the volume of driver licensing applications will fall.
The increased expenditure also reflects continuing progress on the reconstruction and improvement of motor tax offices and on increasing investment in information technology to improve the quality of service provided to motorists.
Subhead M also covers expenditure on the maintenance of the computerised national vehicle file. Significant progress has been made by my Department in reducing the delays in updating the computerised file. These delays were causing difficulties in relation to the enforcement of traffic law in cases where persons had sold their vehicles. About 300,000 transactions were awaiting input to the national vehicle file at June 1990. This has now been reduced to less than 30,000 and I expect that the backlog will be completely eliminated shortly. The improved situation will assist in the enforcement of traffic law and the early production of statistics. It will also enable the reintroduction of the final notice system for motorists who fail to renew their motor tax and thereby help to generate additional motor tax revenue.
I announced on 26 October that I proposed to make regulations requiring all registration plates on vehicles registered on or after 1 January 1991 to incorporate the full Irish language name of the county or city of registration; the flag of the European Communities and the nationality symbol, IRL.
The regulations have now been made. Owners of vehicles registered since 1 January 1987 have the option of using registration plates in the new format. Vehicles registered on or after 1 January 1991, however, are required to carry the new registration plate.
I look forward to hearing the views of Deputies on the Supplementary Estimate. I will take note of any points raised and, in so far as it is possible, reply to them at the end of the debate.