Liz McManus (Wicklow, Labour)
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Question 17: To ask the Minister for Community, Rural and Gaeltacht Affairs if he will account for the rising demand for housing in Gaeltacht areas that has seen the amount of money allocated for grants under the Housing (Gaeltacht) Acts rise by over €500,000 for 2005; and if he will make a statement on the matter. [22597/05]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The demand for housing grants under the Housing (Gaeltacht) Acts has not increased in the past few years. Indeed, following increases in the number of applications from 1,025 in 1998 to a high of 1,486 in 2000, the numbers have fallen back incrementally to 911 in 2004. It is expected that the number of applications this year will be comparable with last year. This is a reflection of the success of the scheme in improving the housing stock in the Gaeltacht over recent years to a point where the level of applications appears to have stabilised.

In terms of expenditure on the scheme, €4 million was allocated for Gaeltacht housing grants in 2004. However, expenditure did not reach the level anticipated, with €3.5 million of the allocation being spent. An allocation of €4 million has been made for 2005 and it is expected that this amount will be spent in full before the end of the year.

Brian O'Shea (Waterford, Labour)
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This is one of the good schemes in the Gaeltacht. I wish to ask about older people, particularly those living alone, who want to seal their houses against the elements, that is, windows, doors and so on, and want central heating. Are the number of applications in that category going up or down? If they are going down, is it an indication that, after a number of years, the back has been broken in respect of the number of people whose houses require this type of renovation or refurbishment? It is very important that older people are looked after in this regard. I am interested to know the trends in this regard and what the Minister sees as the ongoing need in that sector in the Gaeltacht areas.

Éamon Ó Cuív (Galway West, Fianna Fail)
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There is a simple explanation for the numbers. The Deputy might remember that my predecessor, Deputy Michael D. Higgins, ended the grants except for over 65 year olds but, to cut a long story short, they were restored following some issue with the Ombudsman. I agree with the Deputy that it is a fantastic scheme. There are a number of attractions. The amount of money concerned is fairly small and is limited. The scheme is now means-tested and it is quick, efficient and demand-led.

In 1999 I changed the rules and, for the first time, people installing central heating as an essential repaid became eligible for grant assistance. At that time the maximum grant was £2,300 and it was increased to £4,000. We increased the island grant considerably to £12,000. The effect of that was a huge rush of applications. The fantastic beneficial effect was that many people, particularly elderly people and people living in poor circumstances, got central heating for the first time because of the change in the rule. There is a rule that once one gets the grant, one cannot get another grant for seven years. Many people received the grant three, four or five years ago and cannot apply for a grant for further works until the seven years have elapsed. The most common applications are for repairs to doors and windows and for central heating, things in which one can make a significant dent with approximately €5,000. Some 75% of the cost, or €5,000, is provided. Considerably more money is available to those on the islands because the cost of building on them is much higher than on the mainland.

Brian O'Shea (Waterford, Labour)
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Grants were paid in respect of 151 new houses last year. Is there a trend whereby people who had left the Gaeltacht are returning to rear their families or to settle? Would grant applications indicate whether that is happening to any extent?

Éamon Ó Cuív (Galway West, Fianna Fail)
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I do not think so. There was a rule change. In the old days if one did not live in the Gaeltacht at the time of application, one could not get the grant. We changed that rule and said we would sanction the grant even if the individual was not living in the Gaeltacht at the time of application but that we would not pay it until he or she was permanently resident there. We found, for example, that someone got a job in west Kerry who was living in Dublin. The person wanted to build a house but was technically not eligible for the grant because he was not living in the Gaeltacht at the time of application. We changed that, but to safeguard the integrity of the scheme, we do not pay the grant until we are satisfied that the person is permanently living in the Gaeltacht.

I do not have figures on the number of people involved. That would not give us a good indication because in many cases someone moves to the Gaeltacht for a job, rents a house and then builds a house. Therefore, it would be very difficult to ascertain how many people are coming back into the Gaeltacht and then applying for housing grants.