PRESS RELEASE

02/11/2003

BILLY KELLEHER SEEKS ABOLISION OF STAGE PAYMENTS

Cork North Central Deputy Billy Kelleher called on the Department of the Environment to revisit the issue of stage payments with a view to abolishment of this practice.

“It is widely agreed that stage payments are unfair on the house purchaser and in effect means that they fund the costs of construction. In real terms it designed so that the purchaser is the risk taker and this exposure is still practiced in pockets of the Country.”

“While the IHBA do have codes of conduct for their members in carrying out this procedure it is no longer acceptable to allow this to continue. The purchase of a home is probably the most significant investment people will make in their lifetime. The pressures on purchasers would be greatly alleviated by the outlawing of this practice. Buyers in certain parts of the Country can no longer be discriminated against by expecting them to draw down significant proportions of their mortgage while still in the private rental sector.”

“The unwillingness of the industry to address this issue increases the argument for the state to take action. Both the Department of the Environment and the Law Society have openly expressed their dissatisfaction with this process and I would urge them to begin discussions as soon as possible with a view to formulating legislation to combat the problem.”