Ciarán Cannon (Galway East, Fine Gael) | Oireachtas source

I thank Senator Boyhan for raising this issue and quite rightly seeking to bring additional clarity in an area that might need more clarity. When the Rebuilding Ireland home loan was initially being developed, it was estimated that the drawdown of loans under the scheme would be approximately €200 million over three years. However, thankfully, the scheme has proven to be far more successful than originally anticipated. Officials from the Department of Housing, Planning and Local Government have kept the Minister informed regarding the progress of the Rebuilding Ireland home loan on a regular basis and have been engaging with officials from the Department of Public Expenditure and Reform regarding the scheme since October 2018 when it became clear that the rate at which loans were being approved was higher than was originally anticipated, thus highlighting the success of the scheme. The Minister had made a commitment on launching the scheme that he would seek further funding for it at an early stage, if necessary, given his belief in its potential. By the end of January, €106 million had been drawn down, which accounted for some 53% of the available funding, at which 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 his Department was in discussions with the Departments of Public Expenditure and Reform and Finance with regard to an extension of the scheme. A meeting with the Minister for Finance and Public Expenditure and Reform was scheduled for 4 February 2019. However, this had to be rescheduled and took place on 5 March 2019. At no time was the first tranche of funding depleted and following the meeting on 5 March 2019, the Minister informed the Joint Oireachtas 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 2019, €106 million had been lent supporting 575 individuals and families to buy their first home. The Minister is in discussions with the Minister for 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. However, in the meantime, the scheme remains open and all local authorities should continue to receive and process applications up to and including drawdown of funding, as appropriate.