Damien English (Meath West, Fine Gael) | Oireachtas source

I disagree with the Deputy. It is a good scheme and makes financial sense if we can stretch our capital budget and by putting up 30% of the cost it results in a 100% spend on a house which is to be delivered, but it is only part of the solution. Every time I engage with local authorities I stress that they are central to the delivery of social housing. They are the key players. Approved housing bodies engage and work with them to go through every housing project, with the Department's housing agency. They are allocated about one third of Rebuilding Ireland's expenditure for housing delivery in conjunction with the local authorities. It is, therefore, a good scheme. We will get our money back and expect to do so. All of the approved housing bodies go through the regulator. The Deputy claims that it is easy to step in and he is welcome to do so if he engages with the regulator and passes all of the regulations, but, in fact, it is not that easy to pass all of the tests. To ensure the money is secure, there is a tough regulation process to be gone through. At the end of the 25 or 30 year period, the outstanding CALF loan interest must be paid. The AHB may decide to sell the homes and repay the moneys owed to the housing authority, given that at that stage the asset should have a considerable residual value, and may wish to invest elsewhere. It may wish to realise some of the residual value of the properties and secure a further private loan to invest in homes and repay the housing authority or it or the housing authority may decide to enter into another leasing agreement. There are many options, but the money is secure because it is the same as a loan facility.

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