Dáil Éireann Debate, Tuesday - 8 May 2018
27. Deputy Jan O'Sullivan asked the Minister for Housing, Planning and Local Government further to Parliamentary Question No. 636 of 27 March 2018, if the application form for the Rebuilding Ireland home loan scheme will be corrected in order that persons in circumstances (details supplied) can qualify if they satisfy all other criteria; and if he will make a statement on the matter. [19917/18]
Amharc ar fhreagraI seek clarity following the written answer I received to a previous parliamentary question on eligibility for the Rebuilding Ireland home loan scheme. It states that the primary earner on the application must have at least two years' continuous employment, which can be self-employment, and the second applicant must have continuous employment for at least one year. However, the application form states "continuous permanent employment". I know of people whose applications have been rejected by the local authority because their continuous employment was not permanent.
The written answer to the parliamentary question also stated "continuous permanent employment" and that the Department would liaise with the Housing Finance Agency etc. to ensure consistent information. When checking at the time of tabling this question I found that the form still states "permanent employment". I ask that this be clarified. Obviously some people really want to get this loan because they cannot get it anywhere else. It is very important that they are not squeezed out because of lack of information.
As the Deputy will be aware, the Rebuilding Ireland home loan is targeted at first-time buyers who wish to own their own home, satisfy the relevant income limits, 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.
As previously noted regarding this issue, the primary earner on the application must have at least two years’ continuous employment and the second applicant must have continuous employment for at least one year. Both self-employment and employment with a number of different employers can be counted as part of this continuous employment.
Since this issue was last raised, the Minister, Deputy Eoghan Murphy, has had a chance to meet the chief executives of the two main agencies involved in the implementation of the scheme, the Housing Agency and the Housing Finance Agency, to address any issues arising from the roll-out of the scheme.
One of the items raised was the manner in which information is presented on the application form. The Housing Finance Agency has undertaken to amend the wording on the application form to more clearly reflect the requirements of the scheme, specifically in reference to “continuous employment”, which I anticipate will address the Deputy’s concerns on this point.
The application form for the scheme contains the phrase “continuous permanent employment” at point 4 of the eligibility requirements. The requirements for the scheme do not require that the relevant employment be explicitly permanent, but rather continuous in nature. The primary earner on the application must have at least two years' continuous employment, which can be self-employment or with several employers, and the second applicant must have at least one year of continuous employment. The Housing Finance Agency will revise the application form to fully clarify this point. I am glad to have the opportunity to put it on the record today.
I welcome that. I also ask whether those who have already been turned down because their employment was not permanent can now can have either an appeals system or a review of their applications. I know of people who have been turned down.
I have one further question. This specific issue of overtime was covered on "Morning Ireland" last week. The income eligibility requirements state that single applicants must not be earning more than €50,000 per annum and the combined income of joint applicants must not be greater than €75,000 per annum. The "Morning Ireland" presenter stated that some local authorities are counting overtime and possibly also bonuses, while others are not. Can we have the same system for every local authority? It should not matter whether applicants live in Meath, Dublin, Limerick or wherever. If people qualify in one county, they should qualify in the other county. I ask for clarification particularly on overtime.
Some of these issues were also raised at the meeting. As with any scheme that is only three months old, there will be some teething problems. There were some issues with the assessment of data at the outset. Additional training is to be provided at all levels in local authorities. The Housing Agency has processed 460 applications and has sanctioned about 224 of those. If somebody has been refused for the wrong reason or there was misinformation regarding their continuous employment, that can be reviewed or there is an appeal mechanism there. We will make sure that happens as well.
I think the scheme will work and has been working very well. Naturally there will be some question marks around parts of it. There are clear criteria set down to judge overtime, bonuses and all that. The local authority processes the application, which is sent to the Housing Agency and the final decision is made by the credit committee of the local authority. There are clear definitions about that.
There are different types of overtime and different types of bonuses. We need to allow the credit committee to make the judgment on that. Some overtime is nearly like permanent wages - we are familiar with that around here - other overtime is not. That is the judgment call they must make when they assess that. We have asked that clear guidance be given. Any of the questions that have been raised are being worked through. If the Deputy comes across any other issues, we would be happy to have them amended. The frequently asked questions section is updated on a regular basis to reflect any changes. We want to make this as clear as possible and as accessible as possible because we want the scheme to work. That is why it is there.
Some people do extra overtime leading up to this because they need to get their deposit together. Those people should not be caught out.
I understand €200 million has been allocated in the budget. More may be needed if the number of applications continues to rise. Will the Minister of State be able to get more funding in order that people who qualify will actually be able to get the loan?
The scheme set out the ambitions at the start and it will be a demand-led scheme. It is the credit committee's job to judge the different types of overtime. The overtime is very clear from someone's employment record. Applicants are asked to give a lot of information on the form as well. The credit committee analyses the data and makes the decision, as they do in banks, credit unions and everywhere else. People are asked to give as much information as they possibly can, make their case and back it up with their employment record and their payslips and so on. It can be quite clear to judge someone's overtime record from that as well. Different industries, different jobs and different employment backgrounds can mean different things when it comes to overtime. That is assessed and judged. In his meetings with the various agencies, the Minister, Deputy Eoghan Murphy, made it very clear, when using the scheme, to be clear as possible about this while allowing for the different categories because they can work both ways. One person might want the overtime included to qualify in the first place and others do not want it included because it puts them over the limit. It is a question of making the right judgment call here. The criteria are set down and are implemented as standard across the country. The credit committee needs to make the judgment based on sound data, which is what they do once the evidence is there.
