'No delay' to Croí Cónaithe housing scheme, says O'Brien

Housing Minister Darragh O'Brien denied reports that the €450m Croí Cónaithe (Cities) Scheme was to be delayed until 2024. Picture: Damien Storan

There is "no delay" to a key government housing scheme for builders, the housing minister has said.

Speaking at the official opening of 22 new social homes at Ellis Court on Benburb St in Dublin, Darragh O'Brien said that a media report that the €450m Croí Cónaithe (Cities) Scheme, which offers developers up to €144,000 per unit for finishing out apartments in cities, was to be delayed until 2024 was "wrong, quite frankly".

"Unfortunately the article is incorrect. [The article] references a report that was published last year which said the European Commission would report back this year, which is now — 2023.

"We actually expect the decision next week. There's no delay; the commission has been really, really good on this."

Positive decision

Mr O'Brien said he was confident that the commission would come back with a positive decision on the scheme's validity under State aid rules and, afterwards, he would announce the successful schemes.

The scheme had been slammed last year as providing a "€450m giveaway" to developers.

The support aims to deliver up to 5,000 apartments in Dublin, Cork, Limerick, Galway, and Waterford that have planning permission but have been deemed not economically viable to build. 

Mr O'Brien defended the scheme last year, saying that where an apartment costs €350,000 to develop but the market rate is €250,000, then the person buying it will pay €250,000, with the State providing the remainder.

Asked about the publication of an unredacted report into An Bord Pleanála, the minister said that it was vital to separate the planning function of the new Planning Commission and the staff roles.

He said that all of the reports into the planning watchdog fed into the same goal for him, "to have a planning regulator which sits at the apex of planning".