OVER half Listowel's annual capital allocation for housing has been slashed by the government.

Listowel Town Councillors were told on Monday night that only € 440,000 will be made available in 2010 to either buy or build new houses for council tenants in the town. However, cllrs are still in the dark as to direction on whether they will be able to use the money to buy existing stock or build new.

Cllr Tim O'Leary said he understood, however, that there would be no construction this year. "It will be acquisition more or less," he said.

Town Engineer, Michael McEnery, said he believed that that is how the Department of the Environment and Local Government is likely to direct the council.

Town Manager, Charlie O'Sullivan, said the reduction in the capital allocation represented a 56 per cent cut on last year's allocation of roughly €1 million. He said he was unable to say for certain as of yet if the money will be directed for building or buying.

" It is awfully disappointing to see the drop of 56 per cent, given the amount of people on the list," Cllr Anthony Curtin said. "I think we should object strongly to this percentage of a cut we've been handed down...it's meaningless and I think we should write to the Minister straightaway," he added.

Mayor of Listowel, Tom Walsh, agreed but said he felt the council should wait until it has the full picture which it expects to learn later this month, before writing to the Minister for the Environment and Local Government.