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

The key question Fianna Fáil has is whether the legislation will be in compliance with state aid rules, for example, if the amendment is made. We do not want another long delay in setting up the fund. We welcomed it when it was announced on budget day in October of last year. Twelve months on, not a single euro has been provided by way of lending to the construction sector. Along with others, Fianna Fáil has consistently highlighted the growing affordability crisis. There is no doubt that funding issues are a key ingredient of that crisis. Any measure which makes available lower cost funding to help deliver projects at the lowest possible cost is to be welcomed. My question in regard to this Sinn Féin amendment is whether HBFI has the flexibility for to lend on terms more favourable than those available commercially. Does that raise any state aid issues? If it does not and the amendment can be implemented, it has merit. That is the key question from the perspective of Fianna Fáil because the €20 million in equity capital which will provide for the establishment of the HBFI will come from the Ireland Strategic Investment Fund, ISIF, which by its very nature can only be off balance sheet if it is underpinning commercial investment in that respect. I look forward to the response of the Minister of State. The amendment has merit, provided that it is workable and can be delivered promptly rather than causing further delays in terms of seeking state aid approval and so on.

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