MINISTER FOR Housing Michael Finneran has said he has “no role” to play following the loss of €1.5 million in apartment deposits by 95 people in Dublin.
As revealed in The Irish Timesyesterday, 95 prospective buyers in Santry, north Dublin, and Carrickmines, south Dublin, lost €15,000 or €20,000 each respectively on apartments sold by property company Laragan Developments Ltd.
The deposits for Milner Square, Santry, and Carrickmines Green, Carrickmines, were paid over two years ago and so were not covered by the Homebond insurance scheme, which only guarantees deposits for 24 months.
The company has gone into examinership and depositors were told they would only receive €150 or €200 each, 1 per cent of their deposits, in compensation.
The plan to save the company, produced by examiner Paul McCann of Grant Thornton, was presented to creditors earlier this week. Although the depositors voted to reject the deal, it is likely they will be outvoted by other creditors.
Fine Gael housing spokesman Terence Flanagan TD said that it was heartbreaking for the depositors, many of whom had to scrimp and save to get their deposits together, to see their money disappear.
“I am aware that Laragan will have a long list of creditors, but these depositors must surely be top of the list when it comes to payment,” he said.
He added it was totally unacceptable that the depositors would not be protected by insurance.
“Laragan must now be forced to sell off all assets and use this money to repay all homebuyers affected,” he said. The loss to homebuyers of deposits worth tens of thousands of euro was a clear indication that there is an urgent need for legislation that will protect the purchaser.
Labour Party spokesman on housing Ciarán Lynch TD said the Government had no problem rushing through Bills and regulations to shore up banks and bail out builders, but when it came to ordinary members of the public, it was happy to “abandon them to the wolves”.
He said there was an urgent need for legislation that will protect the purchaser.
A spokesman for Mr Finneran said the Minister had no role in the contractual arrangements between the parties.
The Construction Industry Federation could consider any suggested changes to the Homebond scheme, he said.
“He would be sympathetic with the people caught up in this mess, but there is no role for him,” the Minister’s spokesman said.
Meanwhile, The Irish Timesunderstands that the company may seek to make completed apartments available in both developments to the homebuyers who lost their deposits.
And the cost of the apartments at today’s market value may be offset against homebuyers’ initial deposits.
Should this be successful, the depositors may get properties.
One couple, whose son and daughter both put down deposits on apartments in the Carrickmines development, have said they will fight the examiner’s proposal.
Michael Masterson said the €40,000 deposits put down by his children were from SSIA savings.
The Hanly Group, of which Laragan is a subsidiary, had plenty of money, he said.
“It is a disgrace,” he said. “Something must be done.”
