Catherine Murphy (Kildare North, Independent) | Oireachtas source

I thank Dr. Norris for her comprehensive introduction and for the copies of the Housing Finance Agency's annual report, which makes for interesting reading. I accept that the agency does not make policy, but I assume it does advise the Government on such issues as the costs and risks associated with, for example, the shared ownership loan scheme. That particular scheme is aimed at people who will struggle to meet loan repayments and there is a subsidy aspect built into it. Does the agency receive direct feedback from local authorities in respect of how these types of loans will play out? Can offerings be redesigned on the agency's advice?

There are opportunities for local authorities to invest money with the agency and earn a return. As I understand it, in the case of development contributions and certain other funding sources, there is a restriction on spending anything other than what comes in the current year. The last time I inquired about this, I was told there was almost €1 billion between all the local authorities which could not be spent. This is an extraordinary sum of money which would interfere with the national debt if it were to be spent. These moneys are collected in order to match allocations by Government for the provision of such facilities as wastewater treatment plants and so on. Does the agency actively go after that money or do the local authorities approach the agency with a view to investing it? Of the 24 authorities that have invested money with the agency, does Dr. Norris know whether the money is coming out of that particular fund?

Lending has become much more onerous in that significantly more stringent stress tests are now applied. We can all understand why that has happened. Does Dr. Norris have any information on how the local authorities' loan portfolios are performing, associated debt levels and so on, or is that left entirely to the authorities themselves? Dr. Norris referred to a long-standing mismatch in the agency's index-linked and older fixed-rate books. As I recall, however, some of the products it offered in the early days, such as the HFA loans and fixed-rate mortgage loans, were charging interest at rates of up to 12.5%. Were these lending conditions not disproportionately onerous on the borrower? I cannot figure out why such offerings would be more expensive to fund than others.

Does the agency consider location when providing funding to the voluntary housing sector? As I understand it, 43% of the entire housing waiting list is comprised of people living in Dublin, Cork city and County Kildare. The bottom six counties, meanwhile, account for only 3% of the housing waiting list. It goes without saying that rents will be higher in areas of higher demand. Does the agency have any role in deciding where voluntary housing provision is located, having regard to differing regional needs?