Mick Wallace (Wexford, Independent) | Oireachtas source

As the Minister said, by way of CALF the Department provides 30% of the funding upfront for a private organisation to purchase housing units. From what I can see, the loan is unsecured, with a 2% interest rate over a 30-year term. It is understandable organisations are not queueing up to repay during the term of a loan. Even after the 30-year period, there is no concrete repayment option. There are four vague possibilities as to how the money should be repaid to the housing authority but from the guideline notes I have read, it seems as though the housing authority does not think anyone will be around in 30 years time to collect the money; therefore, they are not too worried about it. In effect, the Government is paying one third of the building cost of the units, retains no claim on the properties and will then pay once again to rent the properties back from the approved housing body. Having spent some time in the construction industry, I can say it is not a great business model to pay for something, to give it away and then rent it back. I understand the pressing need to provide social housing units, but the Minister should address the matter of ownership and say why he believes the State giving up ownership of housing infrastructure for which it is paying is a good idea.

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