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Tuesday, 22 Jan 2013

Written Answers Nos. 448-454

House Purchase Schemes

Questions (451)

Terence Flanagan

Question:

451. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government the steps he is taking to support home ownership; and if he will make a statement on the matter. [2590/13]

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Written answers

The Government’s housing policy statement published in June 2011 marked a radical departure for housing in Ireland. The statement clearly recognises the economic consequences of an over reliance on the property sector. It signalled a shift to a tenure neutral high level objective, and a clear commitment to restoring balance to the housing sector generally through a lesser reliance on home ownership. The statement also announced the standing down of all affordable housing schemes on the basis that these had been symptoms of, rather than solutions to, an overheated property market. The policy statement reaffirms the State's commitment to supporting access to home ownership for lower to middle income households and the current range of paths to home ownership will remain in place in that regard. Two types of house purchase loan are available from local authorities: standard annuity loans targeted at lower income first time buyers and those under the Home Choice Loan scheme which are available to qualifying middle income first time buyers affected by the “credit crunch”. The terms and conditions governing the operation, including eligibility terms, of annuity mortgages and the Home Choice Loan are set out under the Housing (Local Authority Loans) Regulations 2009 and the Housing (Home Choice Loan) Regulations 2009 respectively. These are available on my Department's website: www.environ.ie

The Government is also committed to supporting local authority mortgage holders experiencing arrears difficulties, particularly through the updated guidance issued to local authorities in July 2012. This guidance will further enable local authorities to provide a range of flexible repayment of options for households in difficulties.

In particular, the introduction of a Mortgage Arrears Resolution Process (MARP) will closely mirror the suite of options available in the commercial sector. This process will feature a standard set of options including, in cases of certain unsustainable mortgages, the facility of mortgage-to-rent. I expect that the adoption of these revised guidelines will serve simultaneously to help resolve mortgage difficulties for both local authorities and their borrowers, and ensure that, where possible, households will be facilitated to continue to live in their own homes.

Rural Development Programme Funding

Questions (452, 458)

Michelle Mulherin

Question:

452. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government if he will confirm that investigation of possible governance issues in Mayo North East Leader Partnership Teo has concluded; the action he intends to take arising out of the findings and recommendations of the report from the investigation; and if he will make a statement on the matter. [2639/13]

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Michelle Mulherin

Question:

458. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government if he will confirm the findings and recommendations made arising out of the investigation of possible governance issues in Mayo North East Leader Partnership Teo and the irregularities if any that were found; and if he will make a statement on the matter. [2880/13]

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Written answers

I propose to take Questions Nos. 452 and 458 together.

Mayo North East Leader Partnership (MNELP) is the Local Action Group contracted by my Department to deliver both the Rural Development Programme (RDP) and the Local Community Development Programme (LCDP) to the North Mayo area. On foot of correspondence received in 2011 regarding a possible governance issue at Mayo North East LEADER Partnership Company, a comprehensive investigation in to the issues outlined was instigated . This proved to be a very complex investigation and, on foot of its initial findings and in the context of the Department's responsibility to ensure that RDP funding is delivered in an efficient and effective way, a decision was made to suspend project approvals by MNELP on the 7 March 2012. However, it should also be noted that the issuing of payments to eligible approved applications is progressing as normal.

The Final Report, which has recently been made available to me, has been provided to the Department of Agriculture, Food and the Marine (DAFM) (Managing Authority for the RDP) which has subsequently reported the findings to the European Commission and the external accreditation auditors (Deloitte). The findings of the investigation have also been reported to both the Garda Bureau of Fraud Investigation and the Standards in Public Office Commission and consideration of these findings will be subject to the relevant processes in these bodies. The Report is also under consideration in my own Department. It is critical that the funds delivered through the LEADER elements of the RDP are managed in an efficient and effective way , and the suspension of project approvals in MNELP will remain in place until I am satisfied that such approvals can proceed.

While we must ensure correct and proper management and implementation of the LEADER elements of the RDP from both a regulatory and value for money perspective, my Department's objective is to conclude the processes associated with this investigation with a view to reinstating access to RDP funds to the citizens of Mayo North East at the earliest possible opportunity, while ensuring regulatory compliance, value for money and maximum impact for the people of North Mayo. On foot of recent meetings with DAFM, my Department is currently developing an Action Plan that will provide the necessary assurances in these regards.

Rural Development Programme Funding

Questions (453)

Michelle Mulherin

Question:

453. Deputy Michelle Mulherin asked the Minister for the Environment, Community and Local Government the total amount of rural development funds pursuant to the current round of LEADER funding that was ring fenced to be distributed by Mayo North East Leader Partnership Teo; the amount of the said funding that has been drawn down to date; and if he will make a statement on the matter. [2640/13]

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Written answers

Mayo North East Leader Partnership (MNELP) is the Local Action Group contracted by my Department to deliver both the Rural Development Programme (RDP) and the Local Community Development Programme (LCDP) to the North Mayo area. MNELP were originally allocated €10,751,894.00 for the delivery of Axis 3 and 4 (LEADER) of the Rural Development Programme (RDP) 2007-2013 in the Mayo North East area. Implementation of the LEADER elements of the RDP commenced in 2009 and to 31 December 2012 MNELP has registered overall expenditure of €4,388,947.92 which includes both project and administration expenditure.

On the 31 December 2012, MNELP also had overall project activity of €5,764,242.40 which includes project pipeline activity or projects at the early stages of development. Full contractual commitments in MNELP amounted to €4,728,325.24, inclusive of expenditure. In late 2011 the European Commission approved a change in co-funding rates from 55% to 85% for Rural Development Programmes for countries that were part of the Financial Stabilisation Mechanism. Prior to this RDP measures were co-funded at a rate of 55% by the EU, with the remaining 45% coming from national exchequer sources.

The 2011 agreement reduces the national exchequer input to 15% for 2012 and 2013 without a concomitant increase in the amount of funding to be provided by the EU. This has resulted in a reduction in the overall Programme complement from €427m to €314m.

In this context the original funding allocations given to each Local Development Company contracted to deliver the LEADER elements of the RDP are no longer definitive and depend on the capacity of both the groups and their local areas to absorb the available funding within the required timeframes. However, in this context my Department is working closely with Local Development Companies to ensure that any community or individual in any geographical area who is eligible for funding under the RDP will have their applications dealt with in an efficient and effective manner and applications from all geographic areas will be considered equally as long as funding is available.

Capital Assistance Scheme Funding

Questions (454)

Seán Ó Fearghaíl

Question:

454. Deputy Seán Ó Fearghaíl asked the Minister for the Environment, Community and Local Government if, in view of the congregate settings and New Directions report, he intends to make funding available in 2013 to agencies (details supplied); and if he will make a statement on the matter. [2772/13]

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Written answers

Under the Capital Assistance Scheme (CAS), funding of up to 100% of the approved cost is available for the provision of accommodation to meet the needs of persons with specific categories of housing need including older people, people with an intellectual, physical or mental health disability, the homeless, returning emigrants and victims of domestic violence.

My Department’s involvement with the CAS relates primarily to the provision of funds for individual projects. The detailed administration of the scheme, including the appraisal of proposals, the certification that projects comply with the terms and conditions of the funding scheme and the processing of applications for funding, are the responsibility of the relevant local authority.

In response to a call for proposals for new voluntary housing projects which issued to local authorities in June 2012, proposals were submitted to my Department by Kildare County Council in respect of Muiriosa Housing Association, Monasterevin and for facilities at various locations within the county on behalf of KARE. Voluntary housing projects to the value of €34.5 million were approved under the call, including two projects in County Kildare costing an estimated €861,290. Approvals were largely based on the prioritisation afforded to individual proposals by the relevant local authority. The proposals in question were not prioritised for progression at the time.

Work is currently underway on preparing the capital allocations under the Social Housing Investment Programme for 2013, including the CAS measure. As part of the process my Department requested local authorities to submit details of their capital requirements for this year in respect of all approved projects and programmes by 25 January. I will review the potential to approve new CAS projects in the light of the available finances and the submissions received from local authorities.

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