Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

As the Minister knows, finance Bills generally contain the taxation measures set out in the budget, with a costing provided in the budget booklet for all the other taxation measures. Will the Minister address the question about the expected cost of this measure by way of tax forgone and the number of landlords that the Department anticipates will take up this proposal? Some of them will already have tenants in receipt of State supports and they will be entitled to this particular tax break.

With regard to the overall package, the really important missing piece of the jigsaw for supply in the housing sector is the lack of a sustainable financing model for builders and developers. The Minister announced some time ago a €500 million joint venture fund under the Ireland Strategic Investment Fund, with an interest rate in the region of 14%. The Minister knows that the main banks in Ireland are risk-averse - understandably so, given what happened - and when they are prepared to finance development projects, they might give 60% to 65% of the overall cost. Builders and developers are finding it exceptionally difficult to put a viable financing model in place and the State has failed so far to deliver that piece of the jigsaw. More could be done in that area, which might help kick-start supply, which is the root cause of the problem.

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