Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

It is actually five.

I have consistently stated that the home choice loan scheme was designed to respond to the needs of those households that wish to become home owners at present but who are unable to do so because of the credit crunch. It is there, not with any incentive or inducement.

We are not yet in a position to state that the home choice loan is not being drawn down for reasons that may not be altogether apparent, namely that it may be a spur to the financial institutions to give loans knowing that this alternative exists or that people are not entering the purchase market at this time. There are a number of reasons.

I had said all along that it is a temporary measure. I will keep it under review. It is there as an alternative facility for people who cannot get a mortgage in the normal situation. I am not in a position to withdraw it or to change it at this time, but it will be kept under review.

I also reject that there is any question of the Government putting people into the sub-prime market. This is totally incorrect. In fact, there is no incentive at all in the scheme, which is based on a variable rate. It is for people who have already made a decision to buy a house and who, for one reason or another, cannot get a mortgage due to the credit crunch. It is for the middle-income families above those who are on the social or affordable housing level. It is for people who are on an income of €40,000 as an individual and €50,000 as a couple, and the maximum loan is €285,000.

People make their own decisions on this. As I stated, there is no incentive or inducement. If that were the case, then I could stand accused. Indeed, another accusation made was that I was attempting to bail out developers. Deputy Flanagan did not make that but others have. I certainly reject there being any question of this putting people into the sub-prime area. That has not happened.

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