Ten local authorities have run out of their initial funding for the Government's crisis-hit home loan scheme despite Housing Minister Eoghan Murphy insisting money is available to continue the project.
Mr Murphy admitted the situation during a meeting with TDs in which he claimed he knew nothing about an internal January memo to press officers warning of funding problems, saying it was not sent by his officials.
Speaking during the latest Oireachtas housing committee just 24 hours after revelations the €200m scheme has used up its budget despite hundreds of people still to draw down approved loans, Mr Murphy said the scheme will continue.
The Housing Minister said he is in discussions with the Department of Finance and Central Bank to increase funds, that applications from struggling families are still being sought, and that the project has not "frozen".
However, asked specifically by Solidarity-People Before Profit TD Mick Barry if Kildare county council has reached its funding limit, Mr Murphy conceded it and nine other local authorities will need more funds to ensure it can continue to provide the service.
"There are 10 local authorities who have reached their limit, so more money will be re-allocated there," Mr Murphy said.
The Housing Minister said despite the concerns "the scheme has not closed, it has not run out", insisting "people can still apply, we are not at our limit" and saying he is "very surprised" at the widespread criticism of the funding gap.
However, despite the re-assurances, he was heavily criticised by Fianna Fáil housing spokesperson Darragh O Brien, who told Mr Murphy "please don't treat people like fools".
Darragh O Brien
"There are local authorities who are refusing applications, saying 'sorry we can't take any applications'. This is serious. You have to get your story correct. If you were a business you would be insolvent," Mr O Brien claimed.
Mr Murphy responded by repeating money is available to continue the scheme and that all 1,500 people who have had their loan applications approved would see the support promise honoured.
He said while the total cost of the promises stands at €310m, the reality is not all loans will be drawn down and that it is expected the "actual draw down level will be €176m", staying within the initial €200m funding cap.
Asked by Mr O Brien to explain how this could be the case if a January memo to press officers confirmed there are major funding concerns with the project, Mr Murphy added:
I’m telling you I don’t know what the memo is, I’m telling you it didn’t come from my department. That’s what I’ve been informed.
The ongoing concern over the Rebuilding Ireland home loan scheme came as the county by county scale of the nationwide applications was confirmed.
In a parliamentary question response to Sinn Féin's housing spokesperson Eoin O Broin, the Department of Housing said of the 575 applications which have been drawn down to date:
- 111 were in Dublin city council (€50m cost)
- 82 in Fingal county council (€19.276m)
- 68 in Kildare county council (€8m)
- 25 in Cork county council (€6m)
- and six in Kerry county council (€3.075m)
Meanwhile, Mr Murphy was also heavily criticised at yesterday's housing committee for the ongoing homelessness crisis in the country.
The Housing Minister told the committee that while problems are continuing in "the past two months" there has been a trend of more people leaving emergency accommodation and entering it.
However, when it was pointed out this is only correct if the number of people prevented from entering emergency accommodation in the first place is included, Solidarity-People Before Profit TD Mick Barry said:
"The number of people in emergency accommodation is greater now than at any time in the history of the State. The minister's statement omitted to mention 9,987 persons are living in emergency accommodation.
"This number touches the coattails of 10,000 people being officially homeless in this State. The minister is now the first person in the history of this State to be in office with numbers approaching anywhere near that number."
