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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Housing Grants.

Reconstruction grant costs and payment delays

Summary

The Minister estimated £146 million in approved reconstruction grants remained unpaid, while the cost of applications still awaiting approval could not be determined; he said £24 million would likely cover unapproved applications. Burke questioned how the existing £24 million Estimate could meet obligations and raised concerns about delays, arguing funding was insufficient. The Minister declined to anticipate future Estimates, said the Government intended to honour its obligations, and denied that grants were delayed or refused for lack of funds.

Ray Burke Mr. R. Burke Fianna Fáil

asked the Minister for the Environment (a) the cost of applications approved to date for the reconstruction grant scheme but not paid; and (b) the estimated cost of applications in hand but not yet approved.

63.

Comment on this

asked the Minister for the Environment the total cost of the applications processed for home improvement grants up to 30 September 1986.

Comment on this
Toddy O'Sullivan Minister of State at the Department of the Environment (Mr. O'Sullivan) Labour Party

I proposed to take Question Nos. 44 and 63 together.

The estimated value of grant approvals not matured for payment at the end of September 1986, including cases covered by the special dispensation from prior inspection, is £146 million. It is not possible to estimate with accuracy the value of applications on hands but not yet approved, since eligibility for grants in these cases remains to be determined following necessary checks in the Department and inspection of the houses concerned.

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

The Minister of State says the estimated value of grant approval is £146 million. Would he care to explain to this House how the £24 million which is in the Estimate for 1986 for reconstruction grants will cover that? Would the Minister ensure that a full Estimate will appear in the 1987 Estimates to cover the balance?

Comment on this

The number of applications to date is approximately 117,000. The number of approvals at the end of September was 83,000 including cases covered by the special dispensation in February of 1986. The estimated value of the approvals to date is £160 million. That represents an average value per approval of £2,000. Allowing for payments made up to the end of September, which are £14 million approximately, the value of the outstanding approvals is £146 million. It is not possible to give the estimated cost of applications not yet approved, but the general feeling is that £24 million will be adequate to cover the cost of completions by the end of this year.

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

The Minister says he has 117,000 applications on hand at approximately £2,000 per application. That would be, altogether, a figure of £234 million. He has £24 million in the Estimate, a shortfall of £210 million. The estimated time scale of the payment of a grant is six to nine months. Will the Minister assure this House that there will be £210 million in next year's Estimate, the figure needed to pay the grants for 1987?

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

We cannot anticipate the Estimates.

Comment on this

I am not in a position to anticipate Estimates, as the Ceann Comhairle said. I have no doubt that this Government have every intention of honouring their obligations.

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

Is the Minister aware of the long delays that are involved at the moment. The Minister is trying to keep within the £24 million by long delays for inspections, approvals and final inspections and delays in sending out cheques.

Comment on this

Notification of completions are coming in at the rate of 1,200 a week which creates quite a problem.

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

The problem is that the Department have not got the money.

Comment on this

The money is there. Every completion and every application has been honoured to date. The Deputy is trying to distort the whole picture and mislead the House. Perhaps he will give me one instance of people being refused simply because there is no money available.

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

The Department are delaying, and delaying, and delaying.

Comment on this