Council to take AIB to court over ghost estates

Cork County Council is preparing to take eight legal cases against AIB because the bank has refused to release insurance policies it holds on developers who have not finished off ghost estates.

The news was given to councillors yesterday by the local authority’s chief executive, Tim Lucey, after they urged him to act on behalf of residents in the estates who have had to endure “dire conditions” for years.

Councillors maintained that it was more difficult to get insurance policies (bonds) drawn down from AIB than from any other financial institution.

Mr Lucey said that “despite a significant level of correspondence” being sent from the council to AIB, the bank had not released a number of estate bonds to the local authority.

If released, the council said it would use the money to carry out the necessary remedial works on these estates, some of which have been left unfinished for more than 10 years.

Mr Lucey said that AIB continued to hold onto bonds for 12 estates in the county which were left in a bad condition. He said eight of these had now been referred to the county solicitor’s office and the other four would follow if AIB “didn’t live up to its responsibilities”.

Cllr Noel McCarthy (Lab) had earlier urged Mr Lucey to take a test case against the bank because hundreds of people were suffering in unfinished estates.

“Other financial institutions are engaging. But AIB are holding up progress,” he said.

Cllr Ian Doyle (FF) said there were huge health-and-safety concerns in the estates because some were missing manhole covers while timbers were rotting in unfinished houses where young children were playing.

Cllr Kevin O’Keeffe (FF) said the time for talking with AIB was over. Party colleague Cllr Frank O’Flynn said the Government should enact laws which would force financial institutions to hand over the bonds.

Cllr Des O’Grady (SF) said it was “soul-destroying” for the 5,000-plus people living in the county’s unfinished estates, while Cllr June Murphy (SF) said that a united stand is needed on the issue.

“It beggars understanding why it takes so long to draw down a bond. We need action and need to get this money released,” Cllr Kay Dawson (FG) said.

Cllr Andrias Moynihan (FF) said residents were sick to the back teeth of living in dangerous and unfinished estates.

Cllr Deirdre Forde (FG) said the county council should also tell Finance Minister Michael Noonan and the Oireachtas Public Accounts Committee of the problems it is experiencing with AIB.

“That money doesn’t belong to them [the bank], it belongs to the people in the ghost estates,” Cllr Tim Collins (Ind) said.

Cllr Pat Buckley (SF) pointed out: “These people have bailed out the banks and [it’s] about time the banks bailed out these people, who are still paying their mortgages.”

Mr Lucey said there were 138 unfinished estates in the county and if there were dangers in any of them it was up to the receiver or Nama to ensure they are made safe.