John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I will try to give the Deputy as much information as possible but I will have to revert to her with some specific details at a later date.

Following a review of the two existing home loan schemes, namely the house purchase loan and the home choice loan, the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, introduced a new loan offering, known as the Rebuilding Ireland home loan, in February last year to replace the existing schemes. When the new scheme was initially being developed, it was estimated that the draw down of loans under the scheme would be approximately €200 million over three years. However, as outlined by Deputy Butler, the scheme has proven to be far more successful than originally anticipated.

The Department of Housing, Planning and Local Government has been closely monitoring the progress of the Rebuilding Ireland home loan scheme and has been engaging with officials from the Departments of Finance and Public Expenditure and Reform on the scheme since October 2018 when it became clear that the rate at which loans were being approved was higher than originally anticipated. The Minister made a commitment on launching the scheme that he would seek further funding at an early stage, if necessary, given his belief in the scheme's potential. By the end of January, €106 million had been drawn down, which accounted for 53% of the available funding. At that point, €66 million would have been more consistent with the expectation of funds being drawn down over a three year period.

The Minister informed the Dáil on 29 January 2019 that the scheme had proven to be more successful than initially anticipated and would require a further tranche of funds. He further indicated that the Department was in discussions with the Departments of Finance and Public Expenditure and Reform on an extension to the scheme. A meeting with the Minister for Finance was scheduled for 4 February but had to be deferred until 5 March. At no time was the first tranche of funding depleted and following the meeting on 5 March, the Minister informed the Oireachtas Joint Committee on Housing, Planning and Local Government that local authorities could continue to accept applications, as discussions had commenced on further funding.

As of the end of January, €106 million had been lent, supporting 575 individuals and families to buy their first home. The Department is currently in discussions with the Departments of Finance and Public Expenditure and Reform regarding further funding for the scheme. The Central Bank is also being consulted. Specific allocations to local authorities for 2019 will be finalised when those discussions have concluded. In the meantime, the scheme remains open and applicants can be confident that this will continue to be the case. All local authorities should continue to receive and process applications, up to and including draw down of funding, as appropriate.

The Deputy outlined a specific case and many Members have come across similar cases. I will endeavour to get a more specific timeline on the extra tranche of funding for Deputy Butler. I hope I have provided some solace for families in similar situations. I accept that this is a very difficult time for the family referred to by Deputy Butler but I will try to get as specific a date as possible.

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