Peter Burke (Longford-Westmeath, Fine Gael)
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I thank members for their contributions. I will address amendments Nos. 71 and 74, as jointly tabled by Deputies Eoin Ó Broin and Thomas Gould, and amendments Nos. 72 and 73, as jointly tabled by Deputies Richard Boyd Barrett, Gino Kelly, Paul Murphy, Bríd Smith and Mick Barry.

Amendments Nos. 71 and 72 seek to replace and provide that the LDA will be established as a public non-commercial State agency instead of a designated activity company, DAC, as provided for.

Amendments Nos. 73 and 74 seek to delete some or all of subsections 2, 3 and 4 of section 11. Subsections 2, 3 and 4 concern the naming of the agency, the disapplication of certain provisions of the Companies Act and provide for the agency to be independent in the performance of its functions.

Section 11 provides for the formation of the Land Development Agency as a designated activity company limited by shares, under the Companies Act. The LDA will be a commercial semi-State body and will be independent in the performance of its functions. Subsections 2 and 3 concern the naming of the agency and the disapplication of certain provisions of the Companies Act. I am opposing this amendment because all three of these subsections are integral to section 11. Deletion of these subsections would cause the section to only refer to the establishment of a DAC and would delete any reference to the naming of this DAC.

I am opposing these amendments because the Government has decided the LDA will be a commercial State company and there would be a significant cost to the Exchequer if these amendments were accepted. The Bill has been drafted on the basis that all provisions have been carefully considered and drafted to ensure the LDA can work commercially. Subsections 2, 3 and 4 are integral to section 11 and their deletion would cause this section to only refer to the establishment of a DAC and would delete any reference to the name of the DAC and its being independent in the performance of its functions.

The LDA is being established as a designated activity company. As a DAC, the LDA will be able to receive investment funding from the Ireland Strategic Investment Fund, ISIF, through its share capitalisation. The initial shareholding in the LDA will be €100 million, with the Minister of Public Expenditure and Reform holding shares with a value of €99 million and the Minister for Housing holding shares of €1 million. Deputy Boyd Barrett can clearly see it is a publicly-owned company. There is no ambiguity or doubt surrounding that.

On a number of other points raised by Deputies, the independent adjudication of EUROSTAT is that the State should make LDA expenditure off balance sheet. The Government's intention is that this expenditure would not be permanently on balance sheet. For this reason, we are trying pave the way to achieve that. We know the scale of the challenge ahead in terms of the capital that has to be raised to deliver housing in this State. The LDA is a key actor in that delivery. We know the high thresholds that will apply as regards affordability rates and we want to see almost 100% affordability achieved in the Dublin area. That is important.

Notwithstanding members' views, a number of semi-State agencies are fully publicly-owned and the new agency will not be any different. I also remind members that the fiscal rules, which are currently suspended, may be reintroduced in future. The State and the new agency must have the capacity to operate in a countercyclical manner to ensure they can deliver housing at scale, which our citizens so badly need and deserve.