Dáil Éireann debate -
Thursday, 15 May 2003

Vol. 566 No. 5

Grant Payments.

Mr. B. Smith

I thank the Leas-Cheann Comhairle for the opportunity to raise this important issue. I appreciate the attendance of the Minister of State at the Department of the Environment and Local Government, Deputy Noel Ahern.

The disabled persons and essential repairs grants schemes administered by the housing authorities throughout the country are of crucial importance and have enabled the upgrading of many homes. The disabled persons grant scheme has made a major positive contribution to the quality of life enjoyed by many elderly and disabled persons. The grant has enabled many disabled persons to continue to enjoy the comfort of their own homes with dignity, self-respect and the maximum attainable independence and it has saved the State huge expenditure that it would otherwise have incurred in providing hostel and residential places.

A factor in the increasing demand for disabled persons grants has been the success of medical advances in extending the lifetime of persons who have some form of disability and, indeed, in the advances in areas such as rehabilitation of accident victims. These people can now return to the community rather than, as in the past, remaining in hospital.

Applications for essential repairs grants have again risen by enormous leaps over the past three to four years in particular. In some cases, the number of applications received in 2002 has been over six times the number received in 1999. As with the disabled persons grant scheme, with the circumstances of today and people living longer and more people able to live in their own homes, the demand for the essential repairs grant scheme has increased enormously. The investment made by the State in this grant represents, in the vast majority of cases, money well spent as it has precluded the need for a significant higher expenditure under different headings that would otherwise have been required to meet the same need. In many counties such as Cavan, where 300 essential repairs grants are processed and paid in any given year, this prevents significant numbers being added to the housing waiting lists and has solved the basic problem at a fraction of the cost.

A few weeks ago I discussed with officials in Cavan County Council and with the county manager, Mr. Brian Johnston, the difficulties facing local authorities in funding these worthwhile schemes and the possibilities for improving them. It is sad that, in the meantime, Mr. Johnston, who was an outstanding county manager and an exceptional public servant, died suddenly. He was passionately committed to the need to provide proper housing accommodation for all our people with a particular emphasis on the needs of the disabled and the elderly.

In County Cavan, there were 96 applications under the disabled persons grant scheme in 1997. By 2002 the number had risen to 316. In 1999 there were 99 applications for the essential repairs grant scheme and by 2002 there were 648. The grants paid out in 1997 in County Cavan under the disabled persons grant scheme amounted to €349,869 and in 2002 the figure had risen to €1,615,846. In 1997 no essential repairs grants were paid out in County Cavan and in 2002 the expenditure under that heading was €1,507,862.

Between 1997 and 2002 the total expenditure paid out by Cavan County Council under both schemes amounted to €6,658,463. While significant expenditure has been incurred in County Cavan during the years in question, it should be noted that this has ensured the adaptation and the improvement of over 1,023 homes at an average cost of €7,400 per home.

I am also aware that in the period January 2003 to the end of April 2003 almost €1 million has been paid out under both headings with disabled persons grants and essential repairs grants commitments standing at over €4 million. This is a significant expenditure and it is particularly onerous on a local authority such as Cavan to ensure the means to provide the necessary local contribution. The local contributions arising from a commitment of €4 million, and the €1 million already invested, would be of the order of €1.4 million, not to mention the value of grant applications on hand which have not yet been processed.

In order to continue the good work carried out under these schemes, it is necessary to refocus on the criteria which govern the processing and payment of the grants. I appeal to the Minister of State to consider amendments to the 2001 regu lations – S.I. 607 – at an early date in order to manage successfully these grant schemes on an ongoing basis. These amendments could include, at national level: a provision for applicants to provide a local contribution from within their own resources; a provision for a structured method of means testing of applicants similar to any tests applicable in the case of other State funding systems; and a mechanism that would enable local authorities to make, on a county by county basis, provision for hardship cases to be measured against a locally devised and adopted scheme. I am of the view that these changes would have the desired effect of controlling and preventing any unwarranted grants being paid under the essential repairs grant heading.

I am not suggesting that persons who have a genuine disability that qualifies under the provisions of the scheme and who do not have the means to accommodate their own needs would be precluded from benefiting from the appropriate element of State funding. I am pleased the Minister of State who is extremely knowledgeable on all housing issues and has progressive ideas has initiated a review of these schemes. I hope the issues I have raised can be considered by him and his Department.

Mr. N. Ahern

I thank Deputy Brendan Smith for his comments and for giving me the opportunity to speak about the review of the disabled persons grants scheme. The operation of the scheme is currently under review in my Department. On completion of the review, which I envisage will be finalised within a few months, I will be in a position to determine the changes, if any, required to the regulations governing the scheme. The essential repairs grants scheme will also be examined, as the regulations concerned cover both schemes.

Officials from my Department met representatives from the Irish Wheelchair Association on 28 April 2003 and discussed their concerns in respect of the disabled persons grant scheme. The views and comments of the local authorities and other relevant voluntary agencies will be taken into account in the course of the review. I encourage Deputy Brendan Smith to tell his local councillors and the local council that if they have deeply considered this matter and they have a submission, they should forward it now to enable those comments and views to be considered in the review.

The administration of the disabled persons and essential repairs grant schemes is a matter for the individual local authorities. The framework for the operation of the scheme is laid down in the statutory regulations and, as far as is practicable, is designed to give an appropriate degree of flexibility to local authorities. It is a matter for the authorities to decide on the level of funding to be provided for the schemes in their areas from within the combined allocations notified to them for this purpose by my Department. Notification of capital allocations to local authorities in respect of the payment of disabled persons and essential repairs grants for 2003 will issue shortly.

My Department also recoups to local authorities two thirds of expenditure on the payment of individual grants. It is the responsibility of the authorities to fund the one third from their own resources, from amounts provided for that purpose in their annual estimates of expenditure.

There is no doubt that the significant improvements made in recent years to the disabled persons grant and the level of recoupment available have resulted in a substantial increase in the level of demand for assistance under the scheme. Deputy Brendan Smith gave some of the figures from his county's perspective. The effective maximum grant has doubled to more than €20,000 and recoupment is now two thirds, as against 50% six years ago.

Expenditure on the scheme increased nationwide from €13 million for 2,455 grants in 1998 to €52.6 million for 5,932 grants last year. In line with this very significant increase in the Department's capital provision for the scheme, recoupment costs also increased from €6.3 million in 1998 to almost €31.5 million last year. That is a fivefold increase in recoupment, which is considerable.

The position is the same with regard to the essential repairs grant scheme. Significant improvements have led to increased levels of demand for assistance. Expenditure on the scheme increased from €2.2 million for 957 grants in 1998 to €16 million for more than 3,000 grants last year. Recoupment costs have also increased from €764,000 in 1998 to almost €8.8 million last year. This is more than a tenfold increase in recoupment in four years.

These are significant increases in the levels of funding for both schemes. They are a clear indication of the Government's commitment to the disabled person's and essential repairs grant schemes. The review is under way and we will examine the regulations to see if they need to be amended.

Given the increased level of spending by the Department and that a number of local authorities are finding it difficult to make provision for their one third contribution, changes will have to be made. We cannot continue to meet the growth in the number of applications at the rate that has occurred in the past couple of years. Deputy Brendan Smith referred to some of the measures we are considering, including a possible means and medical test, the question of providing loans rather than grants and whether there should be a claw-back if the house is sold within a short period, as often happens.

The allocations for next year indicate that some counties use the scheme far more than others. That is good provided a county makes provision in its estimates for its one third contribution. In the case of the two counties which Deputy Brendan Smith represents, County Cavan uses the scheme far more than County Monaghan. I am aware that people in County Monaghan are fit and agile and will beat teams from County Cavan in football matches. Given the expenditure by the different counties, it is difficult to understand the reason some use the scheme four or five times more often than others, although it is acceptable provided they make provision in their estimates for their one third contribution. I ask the Deputy and his councillors to submit any views they have on the matter to the Department as quickly as possible.

The Dáil adjourned at 7.45 p.m. until 10.30 a.m. on Friday, 15 May 2003.