John McGahon (Fine Gael) | Oireachtas source

I wish to raise an issue about the vacant property scheme and the grant towards it. It is an issue that Senator Paddy Burke has previously raised and something that I have come up against this week.

I will give some context. Obviously, this grant is exceptionally important. It is very good. It is a great way to give young, first-time buyers access into the property market to refurbish vacant, derelict properties. However, there is a discrepancy between different banks when it comes to the mortgage. There is an issue. A couple came to me in Dundalk who has successfully got the full grant. They are ready to buy and in a good financial situation. However, the bank they are dealing with has paused their mortgage application because it wants a first charge on the property, whereas at this point in time, the local authority has a first charge on it because they are availing of the grant. The same bank is telling people that the legal agreement needs to be changed so that the bank has the first charge on the property. If the property were ever to be repossessed, the bank would get its money back first.

This is an issue that the Minister for Housing, Local Government and Heritage, Deputy Darragh O’Brien, has already fixed. The Minister already resolved this issue. There is only one bank in question, which I will not name, that has not got this information to local branches in a sufficient way. Senator Burke, others Senators and I have to go directly to the Minister after he fixed this situation to give examples of where a particular bank is still not implementing the decision that he fixed. This is a good example of where in legislation, when introducing good grants and good policy, a grey area emerges. A Minister can see what that grey area is and fix it at a ministerial level, get the word out to banks across the country that it is fixed and tell them what they need to do and yet that message still has not filtered down throughout one specific bank. That is unfair and down to the potluck of who decides to go to what bank for what mortgage.

I commend the Minister. He was made aware of this. Senator Burke brought it up as far back as two or three months ago. I ask that the Department absolutely ensure that the message is sent very clearly to all banks once again in Ireland so these vacancy grants can get through, people can start living in the homes and that it is not down to the interpretation of a bank reading it incorrectly or to a bank not informing all of its branches about what a Government Minister has done to fix the situation in the first instance.