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Dáil
‹ Ceisteanna—Questions. Oral Answers (Resumed).

Reconstruction grant funding

Summary

Burke questioned whether the £24 million allocation could cover reconstruction grants, citing application numbers and estimated grant costs, and asked whether all eligible grants would be paid this year. Kavanagh said the estimate was realistic, noted that inspections and eligibility checks determined the amounts, and said extra funding would be sought if grants exceeded the allocation.

Ray Burke Mr. R. Burke Fianna Fáil

I must make a very strong objection to the fact that I am losing out on my priority time. The Minister had completed his reply. How can he square this circle? He has 36,000 applications for reconstruction grants and only £24 million in the kitty to pay those grants this year. He said that not all the applications have yet been approved. Assuming only 24,000 of the 36,000 applications are approved and taking the average grant to be about £1,000, that would amount to £24 million. How can the Minister say there is enough money in the kitty this year when we are now only at 12 February?

Comment on this
Fergus O'Brien Mr. F. O'Brien Fine Gael

The Deputy should not be worried about it.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

I have had one objection from a clown over there. I do not want another one.

Comment on this
Fergus O'Brien Mr. F. O'Brien Fine Gael

I am looking at another one.

Comment on this

Neither the Deputy nor I can make an accurate estimation of the value of each application on hand. The value of the grant is determined by the inspector on the ground. The number of inspections carried out to date is 12,500 and the number of approvals is approximately 5,000. The Deputy should adjust his attitude to the amount of money he thinks should be made available. Many applicants apply for more grants than they are entitled to. Some applicants may be debarred if they have received a grant in the past seven years or less. This can only be determined by checking the records. Notwithstanding what I have already said, it is much too early even to hazard a rough estimate of the value of applications on hand, given that we are not yet in a position to establish the relationship between applications, approvals and payments. This can be attempted only when the scheme is in operation for some time. This question is undoubtedly premature. The Deputy might care to table it again in a few months.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

Based on the fact that 5,000 grants have been approved out of a total of 12,500 inspections, it appears that about 18,000 applications will be approved, roughly 50 per cent. The grants vary from £800 to £4,000. I was taking a very conservative figure of £1,000. The value of the applications to date will be about £18 million. The annual figure in the Estimate is only £24 million. How can the Minister justify putting in such a derisory figure when he is claiming this grant scheme to be such a success? Does it mean that grants will not be paid?

Comment on this

I know that this scheme has annoyed Members opposite but nevertheless I give them credit for being the most assidious in circulating application forms throughout their constituencies. One Deputy from over there has opened an office in his constituency. A total of 120,000 applications forms have been sent out. The country has been saturated with them by Deputies and other people have applied directly. Returns have been coming in since before Christmas and we have probably received the bulk of applications for the whole year. The provision of £24 million is a realistic estimate. As the year progresses we will see which of us is right.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

I want to object that I am not able to get on to the other questions dealing with areas where the Minister has not been spending money and making arbitrary cuts in subsidies. Can the Minister give an assurance that all grant applications this year will be paid this year?

Comment on this

The amount of money in the Estimate is £24 million. If the grants meet that sum, they will be paid. If they exceed that, the Deputy is well aware how one has to get extra money.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

It is one more trick to keep within the current budget deficit projections in the budget.

Comment on this

It is an excellent and very successful scheme, causing Deputy Burke a great deal of annoyance.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

It is an arbitrary figure of £24 million so that it will keep within the current budget deficit. The Minister will have to come in with a Supplementary Estimate later on.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That concludes Question Time.

Comment on this