Willie Penrose (Longford-Westmeath, Labour)
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Question 363: To ask the Minister for the Environment, Heritage and Local Government the position regarding an application by Westmeath County Council for funding in respect of a community and voluntary housing project at Springfield, Mullingar, County Westmeath; the reason this project, which is urgently needed, and in which a lot of preparatory work was carried out has not been sanctioned to date; and if he will make a statement on the matter. [18933/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I refer to the reply to Question No 481 of 10 February, 2009. The information received from Westmeath County Council on 21 April, 2009, is being examined by my Department at present.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 364: To ask the Minister for the Environment, Heritage and Local Government if his proposals to undertake long-term leasing of private housing for public housing purposes constitutes the granting of State aid; if he has brought his proposals to the attention of the European Commission; if approval of the Commission is required in view of the consequences for the private rented market; and if he will make a statement on the matter. [18939/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The power for local authorities to enter into leasing arrangements is a long-standing one, set out under section 56 of the Housing Act 1966.

In general, the subsidiarity principle applies to the provision of social housing and it does not therefore fall within the competence of the European Commission unless a particular measure adopted by a Member State impacts upon other areas of Community competence, including, for example, competition law. I have no reason to believe that the new scheme breaches European Community law in general or State Aid rules in particular.