After hundreds of contributors to website http://www.thepropertypin.com recently lodged complaints with the EU. The European Commission has now confirmed that it is to carry out further investigations under EU State Aid laws regarding the governments 'Home Choice Loans' scheme unveiled in Budget 2009.
Part of the complaint alleges that the scheme is a "Subsidisation Of Certain Residential Property Developers" and "Distorts" the market in favor of Big Developers carrying a heavy stock of unsold properties across the country at the expense of buyers and tens of thousands of existing sellers. Tom Parlon, Construction Industry Lobbyist is credited with successfully encouraging the Government to move on the matter. Thus the HFAs borrowing limit may be raised from 3.5billion to 6-10billion as mentioned by the Minister of Housing coupled with a number of controversial provisions that seem to favour all but those holding unsold new builds.
Such commitment of public finances in time of collapsing tax revenue puts the controversial numbers surrounding the medical card controversy into perspective. It reveals the massive extent of the irish government's appetite to dig out an already Tax incentivised and formerly profitable industry before looking after the public health.
The Commission reference for the case is "CEL - CP300/2008 - Housing Financing in Ireland".
More information can be found at this website address: http://www.thepropertypin.com/viewtopic.php?f=4&t=14827