John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 494: To ask the Minister for the Environment, Heritage and Local Government the estimated cost of the disabled persons building grant in 2005; the annual cost of increasing it to €30,000; the proportion of building work costs covered by the disabled persons housing grant; the estimated annual cost of increasing the disabled persons housing grant to cover 100% of actual building work; and if he will make a statement on the matter. [12160/05]

Noel Ahern (Dublin North West, Fianna Fail)
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As a result of the capital allocation to local authorities for disabled persons and essential repairs grants being a combined one amounting to €70 million in 2005, it is not possible to indicate in advance the funding which will be available for each of these schemes. My Department has not carried out a detailed estimate of the increased costs associated with an increase in the allowable maximum grant under the disabled persons grant scheme to €30,000. It is likely, however, that this increased cost to my Department and local authorities would not be less than €20 million annually.

It is a matter for local authorities to decide on the level of funding to be provided for each of the schemes and to administer them from within the combined allocation notified to them. The Department has asked local authorities to indicate their capital requirements and proposals for the funding of their own one third contribution for these schemes in 2005. On receipt of this information, allocations, will be notified by the Department to individual local authorities.

Under the terms of the scheme, the maximum grant of €20,320 can cover up to 90% of the cost of the works to private houses. The grant may cover the full cost of the works to local authority dwellings. Based on activity levels in 2004 and allowing for an anticipated increase in building costs, it is estimated that the cost of increasing the grant to cover 100% could be over €5 million. Factors such as the number and value of grants paid in any one year, the difference in building costs throughout the country, the percentage of grant paid by each local authority and the percentage of the work covered by the current maximum grant in individual cases could cause the real additional cost to diverge significantly from the above estimate.