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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Mortgage Subsidy Payment.

Meath mortgage subsidy payment delay

Summary

Bruton questioned why a third mortgage subsidy instalment, claimed in November 1987, was paid in January despite earlier instalments being paid by December, and challenged the Minister’s claim that grants due had been paid before year-end. Flynn said the payment was made within a reasonable period; increased funding and administrative pressures meant some payments could not be processed before Christmas.

John Bruton Mr. J. Bruton Fine Gael

asked the Minister for the Environment if his attention has been drawn to the fact that the third instalment of a mortgage subsidy for a person (details supplied) in County Meath due to be paid in December 1987 has not yet been paid; that the person was informed that it would take 16 weeks for it to be paid even though it was in order for payment; that the first and second instalments were paid in 1985 and 1986 respectively on time before the end of December of the year in question; and the reason for such an exceptional unprecedented delay in respect of the payment of the third instalment.

Comment on this

There has been no undue delay. The claim for the third instalment of the mortgage subsidy was received in my Department on 16th November 1987 and payment was made on 18th January 1988.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

Is the Minister aware that he gave a reply to a question yesterday to the effect that all grants which came in course of payment during the year ended 31 December 1987 were paid before that date? Is he claiming at this stage that this grant was not in course of payment? If he is not so claiming, why was it not paid, in accordance with the answer he gave yesterday, before 31 December? Was the delay into January in fact an attempt to massage the budget figures and is this case just one of many for that purpose?

Comment on this

I think not because the amount of money allowed for the purpose of mortgage subsidy payment has increased substantially. It was £20.91 million in 1985, £21.66 million in 1986 and in 1987 we expended £25.5 million so there has been no reduction or curtailment in the amount of money being provided to meet the demand under that system. I do not think — and I am sure the Deputy will agree with me — that having submitted application for payment for such a subsidy in mid-November and being paid by mid-January is unreasonable.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

It might not be but for the fact that one financial year had ended and another one had begun at the time and, further, that when this grant was claimed in previous years it was paid in December on both occasions. May I ask why it was retained until January in this year?

Comment on this

I think the Deputy is making an awful lot out of a fortnight's delay when in actual fact application for the payment was not received until a few weeks before Christmas. The Deputy would have a good point if there had been some reduction in the amount of money that had been allocated for the payments last year or if the total that had been allocated in the Estimate had not been increased by me by some £3 million at the end of the year. In all the circumstances — the increased amount of money that was made available for the payment of the subsidy last year and the fact that there were only a few weeks between receipt of the application and payment — I do not think the Deputy should pursue the matter too far.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

Would the Minister agree that his reply to this question is in direct conflict with the reply he gave to Question No. 91 yesterday when he said that all grants that were due were paid before 31 December?

Comment on this

All grants that were due and that had been processed through the Department were paid and, in fact, there was an enormous pay out of grants immediately before the Christmas period——

Comment on this

There was an enormous hold up.

Comment on this

——because I was anxious that people should get their money before Christmas if at all possible. Because of the administrative difficulties attached to the enormous pay outs, it was not possible to pay everybody. That is why the money was not paid until a week or two afterwards. What is the complaint about that?

Comment on this