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Dáil
‹ An tOrd Gnó (Atógáil) - Order of Business (Resumed)

Rebuilding Ireland home loan scheme

Summary

Deputy O'Brien said the home loan scheme was effectively frozen and that local authorities were refusing drawdowns. Minister Murphy denied the scheme was frozen, said it remained open, asked for specific examples, and explained that discussions were ongoing on the funding envelope.

On the programme for Government, on 6 March this year we discovered through freedom of information requests that the Rebuilding Ireland home loan scheme, the flagship of the Government’s housing affordability measures, was effectively frozen. Since then, I have repeatedly asked the Minister, Deputy Murphy, about the situation regarding current loan applications. I am sure he is aware of the problem because I and others have received repeated representations from across the country regarding local authorities still not allowing drawdowns of loans and mortgages under the Rebuilding Ireland affordable home loan scheme, in spite of the Minister assuring me that the scheme was open, loans would be honoured and funds could be drawn down. The Minister for Finance and Public Expenditure and Reform, Deputy Donohoe is present. The cold hand of the Department of Public Expenditure and Reform put a stop to the lending. Has it allocated money this year for additional mortgages to be paid out? What is the status of the scheme? Is it open? Has the Minister, Deputy Murphy, written to local authorities and instructed them to issue the loans in the case of approved mortgage applications?

Comment on this

The Rebuilding Ireland home loan scheme is not and never has been frozen. It is open for applications to be processed and approved and for money to be drawn down. That is happening. If the Deputy has examples of local authorities refusing to process loans-----

Comment on this

I do. It has happened in South Dublin. I will send examples to the Minister.

Comment on this

-----I ask him to bring them directly to my attention because every local authority has been contacted to confirm that the scheme is open and they should continue to accept applications. The continuation of the scheme this year is not dependent on an agreement between myself and the Minister for Finance-----

Comment on this

No allocation has yet been made.

Comment on this

-----although we are in discussions around the overall envelope required to fulfil commitments under the scheme that have been made to date.

Comment on this