Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I welcome the opportunity to discuss this important matter in the Dáil, and I thank both Deputies for raising it. I am happy to make a statement to the Dáil. I agree that we need to look at how the credit union movement can be facilitated in providing financial investment into social housing. I particularly acknowledge the willingness and eagerness of credit unions to do so. As we all know, credit unions play a vital role in the social and economic infrastructure of this State. The credit union movement has 2.89 million members and over €13 billion in assets.

The Deputies are right. Recently, I received a detailed proposal from the Irish League of Credit Unions setting out a means by which funding could be provided to approved housing bodies by credit unions for the development of social housing. The proposal is comprehensive and contains some progressive and imaginative ideas. It is currently being examined in my Department, and I look forward to further engagement with the Irish League of Credit Unions on the issues addressed in its submission.

When the Government launched the Social Housing Strategy 2020 less than a year ago, we made clear that the State should have a central and significant role in the provision of social housing. We also made clear that we need to look at new ways of funding social housing. While we are currently witnessing significantly increased levels of State investment in social housing, the scale of the challenge we face is also substantial.

As the strategy acknowledges, the Government is committed to putting in place mechanisms that are capable of raising additional finance in a sustainable manner and which can be used to drive, plan and co-ordinate the provision of new social housing projects. The strategy includes a commitment to commence work on a financial vehicle to be known as the strategic housing fund whose purpose is to raise funding for the social housing sector. Work on the development of this new funding model is under way in my Department. This work is being progressed under the oversight of a group known as the finance work stream. This comprises of a range of key stakeholders, including the Housing Finance Agency, the National Development Finance Agency and the Departments of Finance and Public Expenditure and Reform. The aim of this work is to deliver a new funding source for social housing. The intention is that this new source of funding will enable approved housing bodies to deliver more housing from scarce Exchequer resources. In simple terms we are looking to facilitate investment in social housing that does not impact on the general Government balance.

Arising from the opportunity offered by the strategy, a range of developers, investors, financiers and others expressed interest in being involved in the provision of social housing. A protocol was put in place in March of this year under the auspices of the finance work stream to facilitate individuals and entities seeking to engage with the State to provide investment for the delivery of social housing. A single point of contact for submitting proposals was established. The social housing proposals clearing house group operates through my Department under the oversight of the finance work stream. To date, 24 different proposals have been received and 20 of the proposers have presented their ideas to the group. The clearing house group is in the process of concluding its work and bringing forward further recommendations.

The submission from the Irish League of Credit Unions is in addition to these other proposals. It is a timely intervention that sets out how the Irish credit union movement could create a dedicated funding vehicle to provide finance for social housing in line with the aims set out in the social housing strategy. Two possible models are proposed. The first would provide for investment to be made in a State-owned financial vehicle which would then lend to approved housing bodies to fund the development of social housing. The second model sets out a scheme whereby credit unions would invest and then lend directly to the approved housing bodies. It is envisaged that the investment provided in this way would not impact on the general Government balance. This point needs to be tested and examined in greater detail, a process currently being led by my Department.

From the Government's point of view, the fact the credit union movement is willing actively to seek a role in financing the delivery of social housing is welcome. We need to use every available resource and funding mechanism to provide housing in areas that require it most and we need to do so as quickly as possible. I therefore welcome the opportunity to debate the matter publicly and I look forward to further engagement with the Irish League of Credit Unions on its submission.

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