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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Apartment scheme and state aid rules

Summary

Deputy O'Callaghan challenges the legality of €450 million in subsidies for private apartment development and asks whether EU state aid clearance has been sought. The Minister insists the supports go to homeowners and says the scheme will activate dormant permissions and help deliver 5,000 apartments, while repeatedly rejecting the deputy's challenge and accusing his party of opposing housing measures.

I refer to the Government's plans to give €450 million in State subsidies to private developers to build apartments. The scheme is designed to cater for people in the highest income brackets - the top 15%, according to analysis by the Business Post. Will the Minister tell us whether the provision of €450 million in State subsidies for developers complies with European Union state aid rules? Has the Government applied to the European Commission for an exemption to the state aid rules in respect of the scheme? Why has he announced and launched the plan without an exemption being in place?

Comment on this

To reiterate, the supports under this proposed scheme go directly to the homeowner or purchaser, not to the builder. It is about activating dormant, inactivated planning permissions. We want to see good, compact urban growth in our five major cities. The difference is we are doing something about it. What I want to see in this space is that we target the delivery of 5,000 apartments for homeowners.

Comment on this

Will the Minister answer my question about EU state aid rules?

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Will the Deputy let the Minister speak?

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We had a debate on this last week and I went through the number of things the Social Democrats are against, which is pretty much everything.

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You will not answer the question.

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Will the Deputy let the Minister answer?

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There have been expressions of interest for the scheme, which is about activating dormant planning permissions, of which there are 80,000 in this country and the majority of which are built to sell. The purpose of the scheme is to support people into home ownership. That support goes directly to the homeowner and can be used in conjunction with the affordability measures, which, by the way, the Social Democrats voted against. The party's Deputies voted against the Affordable Housing Act 2021 and the Land Development Agency Act 2021.

Comment on this

The Minister has not answered the question about EU state aid rules.

Comment on this

You oppose anything we bring forward, Deputy. That is just the way it is.

Comment on this