Communty loans 'may not be repaid'

Government money funded regeneration projects

Loans to Northern Ireland community groups totalling more than £2.5m may never be repaid, the assembly has heard.

The Public Accounts Committee has criticised civil servants from the Department of Social Development for the way they made investment assessments.

Between 1989 and 1996, community groups trying to promote local regeneration were lent £8m under two schemes backed by government and the International Fund.

However, the loans were stopped in 1996 because of poor repayments.

'Some shortcomings'

Assembly members heard on Wednesday that of the money paid back so far, most came from selling property built with public money.

Committee members were critical of various aspects of the projects - particularly how financial appraisals had been carried out.

In response, officials from the Department of Social Development accepted some shortcomings.

They argued that officials had learnt from this and said the schemes had played an important role in creating jobs in disadvantaged communities.

Committee chairman Billy Bell said it would continue to monitor the department closely.