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

I propose to take Questions Nos. 7 and 24 together.

Following engagement with the credit union sector on proposals for credit unions to provide funding for the provision of social housing, the Central Bank undertook a review of the relevant investment framework in 2017. On foot of this review, the revised regulations commenced on 1 March 2018. The revised regulations included the addition of investment in “regulated investment vehicles where the underlying investments of the regulated investment vehicle are investments in Tier 3 Approved Housing Bodies” as a permitted investment class for credit unions. As such, since 1 March 2018, credit unions are permitted to provide funding, through a regulated investment vehicle, to tier 3 approved housing bodies for the provision of social housing.

In respect of the development of specific special purpose vehicles, SPVs, by the credit unions to enable them to make investments in the sector, it is a matter for the credit unions themselves to make the necessary arrangements to facilitate this. We had this discussion earlier. It is something we want to encourage and to see happen, and there is a process in place to make it happen. My Department informed the credit union representative bodies that it was funding a project being undertaken by the Irish Council for Social Housing to examine the establishment of SPVs to facilitate investment in the sector. The Department put the bodies in contact with the Irish Council for Social Housing with a view to those bodies examining further how they could invest in the sector. There are two different credit union bodies and we want to make sure both get equal and fair treatment. They have been asked to engage with the Irish Council for Social Housing around this SPV.

I outlined to the House earlier that there are three phases to that work, two of which are complete, and the last part will, hopefully, be completed in October but certainly in the weeks ahead. That should facilitate more investment. Again, to be clear, one approved housing body has set up a special purpose vehicle and can take money, and one of the credit union bodies is also ready to make investments.

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