Martin Cullen (Waterford, Fianna Fail)

I thank the Senator for giving me the opportunity to speak on funding for the disabled person's grant. The Government is aware of the importance of the grant in helping to meet the accommodation needs of disabled persons but its operation at local level is the responsibility of local authorities and one in which I have no direct function. Authorities operate within a framework laid down in statutory regulations designed, as far as is practicable, to give them an appropriate degree of flexibility in administering the scheme. It is a matter for them to decide the level of funding to be provided for the scheme in their areas from within overall capital allocations notified by my Department for house purchases and improvement loans, disabled person's and essential repairs grants.

My Department's involvement in the scheme relates primarily to the recoupment to authorities of two thirds of their expenditure on each grant. The balance of one third of the cost is funded from the authorities' own resources from an amount included for that purpose in their annual estimates. Local authority capital receipts, surplus to the requirements of the main local authority housing programme and the remedial works scheme programme, may with my Department's approval be used to meet this balance. While it is open to a local authority to seek a higher allocation in the event of increased demand, an increased capital allocation would not of itself allow increased expenditure by the authority without a corresponding upward revision of its own provision for expenditure on the scheme.

Significant improvements have been made to the terms and conditions of the scheme in recent years. The effective maximum grant has doubled from €10,158 in 1997 to the current €20,320 and can cover 90% of the approved cost of the works compared to two thirds in 1997. The recoupment rate has increased from 50% to two thirds and a disabled person's new house grant of up to an effective maximum of €12,700 has also been introduced. I am aware these improvements have resulted in a substantial increase in applications from disabled persons. The number of grants being paid increased from 2,857 in 1999 to 4,883 in 2001 while the cost of paying the grant increased from €15.8 million in 1999 to €41.7 million in 2001. Costs are escalating out of all proportion.

As regards the position in north Tipperary, the county council wrote to my Department last week outlining the financial position on its scheme arising from increased demand and making proposals for changes in its funding. The increased demand for grants in the county is reflected in the increase in the amounts recouped to the council – from €137,000 for 48 disabled person's grants in 1998 to €688,000 for 98 grants in 2002.