Darragh O'Brien accused of misleading Dáil over shared equity scheme

Parties say minister gave the impression that the shared equity scheme had been approved by the Central Bank, but the bank has said it is still considering it

Darragh O'Brien said that work on the design of the shared equity scheme, which could allow the Government to offer equity loans of up to 30% on new-build homes under €400,000, is at an "advanced stage". Photo: Artur Widak/NurPhoto

The Housing Minister has been accused of misleading the Dáil on his controversial shared equity scheme.

Sinn Féin and the Social Democrats have hit out at Darragh O'Brien for creating the impression that the shared equity scheme, which is a key pillar of the new Housing for All plan, had been approved by the Central Bank.

However, the bank has said it is still considering the potential interaction between mortgage measures and the shared equity scheme.

"There is no further update at this stage but the scheme will also be considered as part of the regular annual review of the mortgage measures," the bank told RTÉ's Prime Time.

Addressing claims that he "mislead" the Dáil, Mr O'Brien said he "repeatedly stated that the operational details are being finalised".

He added that work on the design of the scheme, which could allow the Government to offer equity loans of up to 30% on new-build homes under €400,000, is at an "advanced stage".

But Social Democrats housing spokesperson Cian O'Callaghan said politicians had been "unequivocally and clearly" told back in June that the proposed shared equity scheme had been approved and passed by the Central Bank when no such formal sign-off had been given.

The Minister for Housing clearly & unequivocally told the Dáil that the Central Bank had passed & approved his Shared Equity Scheme.

The Central Bank have confirmed that no such approval was given.

I asked the Taoiseach would the Minister take questions on this in the Dáil. pic.twitter.com/gSGQ35KFKK

— Cian O'Callaghan T.D. (@OCallaghanCian) September 15, 2021

"We now have confirmation that this is not the case. We know the Central Bank and the Economic and Social Research Institute (ESRI) have both criticised that scheme indicating it would potentially push up house prices," he told the Dáil.

Sinn Féin's Pearse Doherty said it is important to "get to the bottom" of why Mr O'Brien "misled the House about a flawed scheme, which the senior civil servant in the Department of Public Expenditure and Reform said was being lobbied by developers because it would line their pockets and push up house prices."

He told the Dáil: "The serious question is whether the Taoiseach is again going to turn a blind eye just as he has with everything else. Is he actually going to lead in Government? This cannot go on."

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Responding, Taoiseach Micheál Martin said the Housing Minister has been "very accountable" to the House "in respect of all issues pertaining to housing and legislation".

He also criticised Mr Doherty for describing the Affordable Housing Act 2021, which included the shared equity scheme, as a flawed measure when his party did not oppose the vote on it.

He said Sinn Féin had "huffed and puffed but did not oppose it".

Separately the Taoiseach told the Dáil that he will meet members of the Women of Honour group who have raised allegations of bullying, misogyny and abuse in the Defence Forces.