Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

To respond first to Deputy Fergus O'Dowd, I indicated that the Ireland Strategic Investment Fund, ISIF, under the auspices of the National Treasury Management Agency, was providing funding to increase the supply of housing. For example, the ISIF is now in partnership with the private equity firm KKR to support the construction of 11,000 new homes. This €500 million fund, known as Active Capital, consists of an investment of €325 million from tge ISIF, with KKR investing the remainder. The ISIF is certainly playing a strong role in this regard.

Deputy Fergus O'Dowd asked about the room to rent scheme. In the previous budget I increased the tax relief available under the scheme from €10,000 to €12,000. I was trying to move to a position where a homeowner, for example, a person living alone who had lost his or her partner, could rent two rooms and gain the benefit for so doing. I take advice on where we could pitch the scheme, but changes would be marginal because we cannot provide a massive tax break.

The kind of people who would be inclined to rent a room in their house are not very high-income people. It stands to reason that one's income limits what one can gain from a tax break. If one does not have a taxable income, one will not benefit from a tax break, so there is not much of a margin there. I would not be adverse to moving it up another bit if it was considered that another €1,000 or €2,000 would incentivise the rent of a second room in the house. We would be in trouble then with the people with the app one uses if one wants a room in Paris for the weekend.