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Tuesday, 20 Feb 2018

Written Answers Nos. 591-604

Mortgage Insurance

Ceisteanna (591)

Eoin Ó Broin

Ceist:

591. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if mortgage protection insurance is a mandatory requirement of the new first-time buyers council mortgage; if so, the reason therefor; and the nature of the policies required. [8121/18]

Amharc ar fhreagra

Freagraí scríofa

The local authority mortgage protection insurance (MPI) scheme is overseen by the Mortgage Protection Committee which is a sub-committee of the County and City Management Association (CCMA) and is representative of the CCMA, local authorities, the Housing Finance Agency and my Department. The local authority MPI scheme has applied to all house purchase loans approved by local authorities after 1 July 1986 including the new Rebuilding Ireland Home Loan introduced on 1 February 2018.

The Consumer Credit Act 1995 applied conditions on lenders which applied to local authorities as well as commercial lenders. Under section 126 of the Consumer Credit Act 1995 the lender is legally required to ensure that a prospective borrower has mortgage protection insurance in place before drawing down a mortgage.  Where a lender offers a particular policy sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs.  However, sub-section 2(d) does not apply to local authorities.

One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The group policy is a commercial insurance product which is procured in accordance with EU procurement rules.  A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market.

It is important to note that the local authority MPI scheme covers disability as well as death and that the disability cover is for the full period of the disability and not just 12 months as is the case in the majority of MPI policies available.

Standard MPI products are individually priced based on a member's age, amongst other factors, whereas the local authority MPI scheme is a group arrangement offering a single group rate per €1,000 sum assured to all participants in the scheme.  Aside from the difference between an individual and a group rate, the following factors have the main influence on determining the price of the local authority MPI scheme:

- standard mortality and morbidity factors based on population actuarial statistics;

- the local authority borrowers’ risk profile;

- the terms and conditions of the local authority MPI scheme and, in particular, the fact that all local authority housing loan borrowers are accepted without medical evidence;

- the claims experience of the local authority MPI scheme.

In determining the rate for the local authority MPI scheme, consideration was given to all of the above factors, and the procurement process that was undertaken reflected those requirements. It is important to also point out that there are a number of additional features of the local authority MPI scheme as follows:

- in the event of a claim, the insurance covers the amount of the mortgage repayable on death which is similar to standard MPI;

- the member’s mortgage repayments are covered if there is a claim as a result of disability and not death; this additional feature is not included in standard MPI products;

- an extra cover of €3,000 is also provided in the event of a member’s death, which is not included in standard MPI products;

- the local authority MPI scheme covers members to age 75 for death, while ordinary MPI is usually based on a ceasing age of 65 unless an older age is agreed and priced.

The Mortgage Protection Committee which oversees the scheme endeavours to achieve a balance between the most economic rate to be charged for the scheme and the benefits provided.

Irish Water Remit

Ceisteanna (592, 593)

Bríd Smith

Ceist:

592. Deputy Bríd Smith asked the Minister for Housing, Planning and Local Government the functions and operations that are the remit and responsibility of Irish Water. [8133/18]

Amharc ar fhreagra

Bríd Smith

Ceist:

593. Deputy Bríd Smith asked the Minister for Housing, Planning and Local Government the reason Irish Water is reported to be refusing to undertake responsibility for works that are concerned with surface level water management. [8134/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 592 and 593 together.

Since 1 January 2014, Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels. 

Section 7 of the Water Services (No. 2) Act 2013 provided for the transfer of water services functions, with some exceptions, of the city and county councils to Irish Water. Water services functions in Part 4A of the Act of 2007 (which relate to domestic waste water treatment systems) and Part 6 of the same Act (which relate to rural water services) did not transfer to Irish Water.

The provision, operation and maintenance of sewers, other than storm water sewers, are amongst the functions transferred to Irish Water.  However, the operation and maintenance of storm water sewers remains a function of the local authorities.  The operation and maintenance of road gullies is the responsibility of the relevant road authority under the Roads Act 1993.

Social and Affordable Housing Data

Ceisteanna (594)

Catherine Connolly

Ceist:

594. Deputy Catherine Connolly asked the Minister for Housing, Planning and Local Government the number and location of homes built under the affordable homes scheme that remain unsold by county, in tabular form; the outstanding debt on those homes in relation to capital cost and interest accruing; and if he will make a statement on the matter. [8158/18]

Amharc ar fhreagra

Freagraí scríofa

The information requested is being compiled and will be forwarded to the Deputy in accordance with Standing Orders.

The following deferred reply was received under Standing Order 42A
The information sought is being compiled as quickly as possible from each of the local authorities and will be forwarded to the Deputy as soon as it is fully collated.

Mortgage Insurance

Ceisteanna (595, 596)

Thomas P. Broughan

Ceist:

595. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government the parameters for mortgage protection for mortgages granted under the Rebuilding Ireland home loan scheme; the mortgage protection options open to these persons; and if he will make a statement on the matter. [8190/18]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

596. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government if he will report on the Rebuilding Ireland home loan scheme and mortgage protection options for mortgages; if a person with a mortgage is open to source appropriate and competitive mortgage protection from providers; his views on whether their consumer rights are being restricted; and if he will make a statement on the matter. [8191/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 595 and 596 together.

Mortgage protection insurance must be in place before a Rebuilding Ireland Home Loan is drawn down.  The local authority mortgage protection insurance (MPI) scheme is overseen by the Mortgage Protection Committee, which is a sub-committee of the County and City Management Association (CCMA) and is representative of the CCMA, local authorities, the Housing Finance Agency and my Department. The local authority MPI scheme has applied to all house purchase loans approved by local authorities after 1 July 1986.

The Consumer Credit Act 1995 applied conditions on lenders which applied to local authorities as well as commercial lenders. Under section 126 of the Consumer Credit Act 1995 the lender is legally required to ensure that a prospective borrower has mortgage protection insurance in place before drawing down a mortgage.  Where a lender offers a particular policy sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs.  However, subsection 2(d) does not apply to local authorities.

One of the conditions of the scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The group policy is a commercial insurance product which is procured in accordance with EU procurement rules.  A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market.

It is not possible to compare standard mortgage protection insurance (MPI) products commercially available with the local authority MPI product.  It is important to note that the local authority MPI scheme covers disability as well as death and that the disability cover is for the full period of the disability and not just 12 months as is the case in the majority of MPI policies available.

Standard MPI products are individually priced based on a member's age, amongst other factors, whereas the local authority MPI scheme is a group arrangement offering a single group rate per €1,000 sum assured to all participants in the scheme.  As a result, it would not be valid to attribute the difference in cost between this scheme and standard MPI to any one issue as this is not comparing like with like. Aside from the difference between an individual and a group rate, the following factors have the main influence on determining the price of the local authority MPI scheme:

- standard mortality and morbidity factors based on population actuarial statistics;

- the local authority borrowers’ risk profile;

- the terms and conditions of the local authority MPI scheme and, in particular, the fact that all local authority housing loan borrowers are accepted without medical evidence;

- the claims experience of the local authority MPI scheme.

In determining the rate for the local authority MPI scheme, consideration was given to all of the above factors, and the procurement process undertaken reflected those requirements. It is important to also point out that there are a number of additional features of the local authority MPI scheme, including:

- in the event of a claim, the insurance covers the amount of the mortgage repayable on death which is similar to standard MPI;

- the member’s mortgage repayments are covered if there is a claim as a result of disability and not death; this additional feature is not included in standard MPI products;

- an extra cover of €3,000 is also provided in the event of a member’s death, which is not included in standard MPI products;

- the local authority MPI scheme covers members to age 75 for death, while ordinary MPI is usually based on a ceasing age of 65 unless an older age is agreed and priced.

The Mortgage Protection Committee which oversees the scheme endeavours to achieve a balance between the most economic rate to be charged for the scheme and the benefits provided.

Housing Assistance Payment Eligibility

Ceisteanna (597)

Róisín Shortall

Ceist:

597. Deputy Róisín Shortall asked the Minister for Housing, Planning and Local Government the number of days to the expiry of a tenancy that a tenant must face to be eligible for the homeless HAP scheme; the rationale for the number of days; and the statutory basis for same. [8194/18]

Amharc ar fhreagra

Freagraí scríofa

Any household assessed as eligible for social housing is immediately eligible for housing support through the Housing Assistance Payment (HAP) scheme. Once a household has been deemed eligible for social housing support, it is a matter for the local authority to examine the suite of social housing supports available, including the HAP scheme, to determine the most appropriate form of social housing support for that household in the administrative area of that local authority.  This function also includes determining when it is appropriate to refer a household for Homeless HAP Place Finder services. 

The Homeless HAP supports and Place Finder Service have been operational since February 2015, across the four housing authorities in the Dublin Region, and are being implemented through the Dublin Region Homeless Executive (DRHE). The focus of the interventions remains the transitioning of qualified households from emergency accommodation, including hotels, into private rented tenancies. To qualify for these specific additional supports available to homeless households, a household must have been determined by the relevant local authority to be homeless within the meaning of section 2 of the Housing Act 1988. The operation of local homeless services, including the Place Finder Service is a matter for each local authority.

Water Meters Data

Ceisteanna (598)

Catherine Murphy

Ceist:

598. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government if new build commercial and residential structures are supplied with a water meter; the body responsible for its installation; and if he will make a statement on the matter. [8211/18]

Amharc ar fhreagra

Freagraí scríofa

Since 1 January 2014, Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels, pursuant to Section 7 of the Water Services (No. 2) Act 2013 which provided for the transfer to Irish Water of all water services functions conferred on the county and city councils by the Water Services Act 2007. Section 32 of the 2007 Act sets out responsibilities in respect of general water services functions and includes the installation and maintenance of meters.

Irish Water has produced Standard Details and a Code of Practice which outlines acceptable design and construction practices for contractors which must be adhered to, to connect to Irish Water infrastructure.

I am advised by Irish Water that according to this Code of Practice all new housing developments that are currently being completed by contractors are required to have a meter-ready boundary box installed. Before the establishment of Irish Water, local authorities also applied this requirement.  This applies to new houses; houses where the refurbishment requires planning permission; and apartment blocks which will be fitted with bulk meters. These pre-installed meter-ready boundary boxes will enable Irish Water to fit meters in developments in a planned programme of works, consistent with recommendations made in the 2017 Report of the Joint Oireachtas Committee on the Future Funding of Water Services (JOCFFDWS), to allow for effective leak detection and conservation.

The Report of the JOCFFDWS, which was approved by both Houses of the Oireachtas, includes a number of recommendations in relation to the continued use of metering to support water conservation, to reduce leakages and to ensure compliance with the Water Framework Directive.  My Department continues to work with Irish Water and the Commission for Regulation of Utilities to ensure that effective water conservation arrangements are reflected in investment plans and connection policies.

In respect of non-domestic properties, local authorities previously had responsibility for the installation of water meters, and they continue to do so on behalf of Irish Water.

Local Authority Housing Maintenance

Ceisteanna (599)

Seán Crowe

Ceist:

599. Deputy Seán Crowe asked the Minister for Housing, Planning and Local Government the amount each local authority has budgeted for repair and maintenance of its housing stock in each year for the past four years; and the amount of housing stock each has in tabular form. [8226/18]

Amharc ar fhreagra

Freagraí scríofa

Section 58 of the Housing Act 1966 provides that the management and maintenance of local authority housing stock is a matter for each individual local authority. This includes the implementation of planned maintenance programmes and carrying out of responsive repairs and pre-letting repairs. My Department does not, therefore, retain the information sought by the Deputy.

Regarding the number of houses that are owned by local authorities, the National Oversight and Audit Commission (NOAC), in their annual reports on Performance Indicators in Local Authorities, publishes a range of information in relation to social housing stock, including the total number of dwellings in each local authority area. The most recent NOAC report containing this information shows almost 130,000 homes provided directly by Local Authorities and is available at the following link:  http://noac.ie/wp-content/uploads/2016/12/2015-PI-Report.pdf.

Planning Data

Ceisteanna (600)

Seán Crowe

Ceist:

600. Deputy Seán Crowe asked the Minister for Housing, Planning and Local Government the number of times each local authority has been to court as plaintiff against unauthorised developments in the past four years in tabular form. [8227/18]

Amharc ar fhreagra

Freagraí scríofa

My Department does not maintain the information sought.  While planning statistics are compiled by each planning authority on an annual basis for collation and publication on my Department’s website at the following link http://www.housing.gov.ie/planning/statistics/planning-statistics-1, these statistics do not include planning enforcement-related information, such as attendance at court for cases relating to unauthorised development.

Solar Energy Guidelines

Ceisteanna (601)

Seán Crowe

Ceist:

601. Deputy Seán Crowe asked the Minister for Housing, Planning and Local Government if solar farms need an environmental impact assessment before they can be built. [8228/18]

Amharc ar fhreagra

Freagraí scríofa

The EU Environmental Impact Assessment (EIA) Directive specifies projects which, by virtue of their nature, size or location, are likely to have significant effects on the environment and should be subject to EIA.  The Directive requires projects listed in Annex I of the Directive to be subject to mandatory EIA and provides that Member States may determine whether projects listed in Annex II of the Directive shall be subject to EIA. 

Projects requiring an EIA by a planning authority or An Bord Pleanála (the Board), as appropriate, in respect of an application for planning consent are listed in Schedule 5 of the Planning and Development Regulations 2001 (the Regulations), which transposes the list of projects in Annexes I and II of the EIA Directive.

Proposals for individual renewable energy development projects may be subject to environmental impact assessment (EIA) as part of the planning process.  Part 2 of Schedule 5 of the Regulations includes certain renewable energy development projects, such as wind energy projects and, in accordance with the Directive, certain thresholds have been set below which development need not necessarily be subject to EIA.  EIA is also required in the consideration of planning applications, other than in the circumstances referred to above, where a development is likely to have significant effects on the environment, having regard to the criteria set out in Schedule 7 of the Regulations.

At present, while solar farm development projects are not specifically listed as requiring assessment under the EIA Directive or under the Regulations, such development proposals may be required by a planning authority to undertake an environmental impact assessment, taking into account the criteria listed in Schedule 7 which include the characteristics of the proposed project having regard to its size, its cumulation with other development, pollution and nuisances, and the risk of accidents as well as the location of the proposed development having regard to the existing land use, the environmental sensitivity of the geographical area and the absorption capacity of the natural environment in the area of the proposed development.

Asbestos Remediation Programme

Ceisteanna (602)

Seán Crowe

Ceist:

602. Deputy Seán Crowe asked the Minister for Housing, Planning and Local Government the assistance his Department is providing to families that have asbestos on their property to help mitigate against its future harm. [8229/18]

Amharc ar fhreagra

Freagraí scríofa

My Department does not have any grant available specific to the removal of asbestos from homes.  

The Housing Adaptation Grant Schemes for Older People and People with a Disability provide a range of grants for necessary improvement works or adaptations to houses in order to facilitate the continued independent occupancy of their own homes by older people and people with a disability. These schemes cover works reasonably necessary for the purposes of rendering a house more suitable for the accommodation of applicants, and could in those circumstances include the removal of asbestos.

The schemes are administered by local authorities and it is a matter for each local authority to determine how the funding is apportioned between the various grant measures and to manage the operation of the schemes in their areas from within the capital allocations provided by my Department.

For private home owners, it is recommended that expert advice should be sought in dealing with asbestos materials and if removal is necessary it should only be done by a competent contractor with the required training.

Water and Sewerage Schemes Status

Ceisteanna (603)

Robert Troy

Ceist:

603. Deputy Robert Troy asked the Minister for Housing, Planning and Local Government the status of an application to provide a group sewerage scheme (details supplied). [8243/18]

Amharc ar fhreagra

Freagraí scríofa

My Department's Multi-annual Rural Water Programme 2016-2018 includes funding of group sewerage schemes, through Measure 4(d) where clustering of households on individual septic tanks is not a viable option, particularly from an environmental perspective.

Local authorities were invited in January 2016 to submit bids under the programme. The invitation envisaged no more than two demonstration group sewerage schemes being brought forward under the measure in any one year of the programme. The demonstrations will allow my Department, over the course of the programme, to determine the appropriate enduring funding levels and relationship with the current grant scheme. A proposed Group Sewerage Scheme for Marlinstown, Mullingar was included by Westmeath County Council in its bids under the measure. In total, 83 bids were received from 17 local authorities requesting funding under this measure.

An Expert Panel was convened by my Department to examine the 2016 bids from local authorities for projects under a number of the programme's  measures, including 4(d) and to make recommendations to the Department on funding. The Panel recommended a priority list of demonstration schemes under this measure to my Department, which accepted the recommendations in full when approving the rural water allocation for 2016. The priority list recommended by the Panel did not include Marlinstown Group Sewerage Scheme.

As only two demonstration projects can be advanced in any given year and a priority list of new demonstration group sewerage schemes has already been identified for the duration of the programme, there is currently no scope for any additional schemes. 

A copy of the Expert Panel's report and consideration of all  proposals under the programme is available on my Department's website at the following link :

http://www.housing.gov.ie/water/water-services/rural-water-programme/group-water-schemes-and-rural-water-issues.

My Department will shortly initiate a short, focused review of the wider investment needs relating to rural water services, including the overall approach to funding rural water issues. The review will focus on governance, supervision and monitoring of the sector and the capital investment requirements. It is anticipated that the review group will engage with relevant stakeholders and will aim to complete its work by mid 2018. The process will inform preparations for a new multi-annual programme for the period 2019-2021.

Mortgage Insurance

Ceisteanna (604)

Seán Haughey

Ceist:

604. Deputy Seán Haughey asked the Minister for Housing, Planning and Local Government if his attention has been drawn to the fact that local authorities are insisting that applicants under the new Rebuilding Ireland home loan scheme take out mortgage protection which results in lower amounts being loaned to them; his views on whether it is appropriate for applicants to be obliged to take mortgage protection from local authorities which are also the mortgage advisers in similar cases; if his attention has been further drawn to the fact that local authorities are quoting more than three times the average amount which can be obtained elsewhere in the market for mortgage protection; and if he will make a statement on the matter. [8275/18]

Amharc ar fhreagra

Freagraí scríofa

The Rebuilding Ireland Home Loan is targeted at first time buyers who wish to own their own home, have access to an adequate deposit and have the capacity to repay a mortgage, but who are unable to access a mortgage sufficient for them to purchase their first home. It is a matter for local authorities, as lenders, to satisfy themselves that an applicant(s) has the borrowing and repayment capacity to cover all the costs involved in a house purchase . The amount to be loaned to an applicant is determined in accordance with the rules governing the loan and the associated statutory credit policy. 

The local authority mortgage protection insurance (MPI) scheme is overseen by the Mortgage Protection Committee which is a sub-committee of the County and City Management Association (CCMA) and is representative of the CCMA, local authorities, the Housing Finance Agency and my Department. The local authority MPI scheme has applied to all house purchase loans approved by local authorities after 1 July 1986.

The Consumer Credit Act 1995 applied conditions on lenders which applied to local authorities as well as commercial lenders. Under section 126 of the Consumer Credit Act 1995 the lender is legally required to ensure that a prospective borrower has mortgage protection insurance in place before drawing down a mortgage.  Where a lender offers a particular policy sub-section 2(d) of section 126 of the Act provides that the borrower can source an alternative policy to suit their needs.  However, sub-section 2(d) does not apply to local authorities.

One of the conditions of the local authority scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers. The group policy is a commercial insurance product which is procured in accordance with EU procurement rules.  A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market.

It is not possible to compare standard mortgage protection insurance (MPI) products commercially available with the local authority MPI product, as the benefits differ significantly. For example, the local authority MPI scheme covers disability as well as death and the disability cover is for the full period of the disability, and not just 12 months as is the case in the majority of MPI policies available.

Standard MPI products are individually priced based on a member's age, amongst other factors, whereas the local authority MPI scheme is a group arrangement offering a single group rate per €1,000 sum assured to all participants in the scheme.  As a result, it would not be valid to attribute the difference in cost between this scheme and standard MPI to any one issue as this is not comparing like with like. Aside from the difference between an individual and a group rate, the following factors have the main influence on determining the price of the local authority MPI scheme:

- standard mortality and morbidity factors based on population actuarial statistics;

- the local authority borrowers’ risk profile;

- the terms and conditions of the local authority MPI scheme and, in particular, the fact that all local authority housing loan borrowers are accepted without medical evidence;

- the claims experience of the local authority MPI scheme.

In determining the rate for the local authority MPI scheme, consideration was given to all of the above factors, and the procurement process undertaken reflected that. It is important to also point out that there are a number of additional features of the local authority MPI scheme as follows:

- in the event of a claim, the insurance covers the amount of the mortgage repayable on death which is similar to standard MPI;

- the member’s mortgage repayments are covered if there is a claim as a result of disability and not death; this additional feature is not included in standard MPI products;

- an extra cover of €3,000 is also provided in the event of a member’s death, which is not included in standard MPI products;

- the local authority MPI scheme covers members to age 75 for death, while ordinary MPI is usually based on a ceasing age of 65 unless an older age is agreed and priced.

The Mortgage Protection Committee which oversees the scheme endeavours to achieve a balance between the most economic rate to be charged for the scheme and the benefits provided.

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