Bernard Durkan (Kildare North, Fine Gael)
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Question 320: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that those qualifying for shared ownership loans, who opt to buy out the remaining equity in their property in any year subsequent to taking out the mortgage will automatically activate the claw back in full, whereas, those who can avail of a loan from a financial institution are not so penalised; the way this compares with the terms offered to the recipients of the various private sites or affordable housing schemes available to residents in the Dublin area; the way in which it transpires that some financial institutions are in a position to offer a mortgage at a repayment rate of up to €200.00 per month below that available through shared ownership loans involving approximately 50 percent of the equity, with the balance by way of rent; and if he will make a statement on the matter. [30422/06]

Noel Ahern (Dublin North West, Fianna Fail)
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Shared ownership loans are provided solely by local authorities and, given that, the commercial lending agencies do not finance arrangements in which the local authority retains a share in the dwelling. Finance for these loans is made available by the Housing Finance Agency at a competitive rate, identical to their variable interest rate for other types of house purchase. There is no direct comparability between shared ownership loans and loans provided by private institutions in other circumstances. The claw-back condition operating under the various affordable schemes is a standard arrangement across all local authorities, and is designed to prevent short term profit taking on the basis of the publicly provided subsidies.