Unfinished Housing Developments

Dáil Éireann Debate, Tuesday - 19 November 2013

Tuesday, 19 November 2013

Questions (206)

Willie Penrose

Question:

206. Deputy Willie Penrose asked the Minister for Finance the position pertaining to financial bonds issued by the Irish Bank Resolution Corporation in relation to the construction of various housing estates throughout the country; if he will give an assurance that these bonds are fully honoured when called upon by the relevant local authorities to ensure they are in a position to complete such estates and take them in charge; and if he will make a statement on the matter. [49434/13]

Written answers

Minister for Finance

I am aware of the problems facing local authorities and in particular in relation to unfinished housing estates as a result of developers not complying with the terms of their planning permissions. Both the Special Liquidators and officials from my Department have recently met with the Department of Environment, Community and Local Government, Local Authorities and the Housing Agency in relation to this issue as a matter of concern. I am advised that development bonds previously entered into by IBRC in favour of the various County Councils or local authorities remain in place. Unfortunately it is likely that any liabilities arising under these arrangements, if called upon, will rank as unsecured claims in the special liquidation.

I am advised that the Department of the Environment, Community and Local Government are currently working with the relevant local authorities to ascertain the actual level of exposure that exists in relation to these bonds and submit a claim to the Special Liquidators in respect of the bonds.