Willie Penrose (Longford-Westmeath, Labour)

There are clearly issues in regard to bonds, especially where developers can no longer be contacted or have gone out of business. This is a particularly difficulty when working with an insurance bond rather than a cash bond, the latter being far more accessible and liquid. Bonds were never designed to deal with the nature of the difficulties that have arisen. Their intended purpose was to ensure that all work would be completed in accordance with the terms and conditions of the planning permission. The duration of bonds is also an issue. I agree with the Deputy that we must not have a situation where local authorities, which are already cash-starved, are picking up the costs.

The expert group on unfinished housing developments is of the view that the issue of securities and bonds merits further examination, including the use of liquid security such as cash deposits, coupled with something that may meet the Deputy's approval, namely, careful phasing of developments in a sequential manner to minimise the working capital impact. I will carefully consider all the recommendations in the group's final report.

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