Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

The Minister confirmed in his response that the development bonds of local authorities are classified as unsecured claims. He also confirmed that the deposits of €17 million of local credit unions throughout the country are unsecured claims. He said that the local authorities should contact the special liquidators of IBRC about any claims they have on their books regarding development estates which remain unfinished.

A report on ghost estates found that there are 1,770 unfinished housing developments throughout the country. According to the progress report from the Department of the Environment, Community and Local Government, over 1,100 of these estates are in a serious problematic condition. The residents of these estates need support to ensure that their homes and environment are brought up to the standard laid out in the original planning permission governing those developments.

The Minister referred to whether the liquidators choose do this or that. First, the Government gave the Minister special powers to make payments with regard to IBRC, outside the realm of the special liquidators. The Minister should be conscious of that in the context not only of local authorities and development bonds but also with regard to credit unions, the staff of IBRC and the commitments that were given to them prior to the liquidation and the lack of enforcement of those commitments since the liquidation. I have strayed from the subject of the Topical Issue in that regard, but it is worth mentioning.

The Taoiseach also stated that emergency recapitalisation funds are available to make up any shortfall. That was with regard to credit unions. Can the Minister give the same commitment or can he acknowledge that this commitment was given, that it was correct and that the House was properly informed, with regard to development bonds, the credit unions and IBRC staff?

This situation will spiral completely out of control. As I said earlier on the Wicklow issue, it became apparent by virtue of the action being taken subsequent to the raising of the issue here that in the event of bonds not being accessed by the local authorities, it is the opinion of the Department that responsibility will lie with homeowners. A great many homeowners will be queuing up to seek clarification. If the Minister of State cannot provide clarity today, I hope it will be forthcoming very shortly.

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