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

I ask the Minister to try to be a little clearer on the question of what HBFI can and cannot do. I understand the terms of the funding must be competitive. Otherwise, it will not do any business, but is it also the case that it needs to be on commercial terms? Is there any difficulty presented by the explicit recognition that it can provide borrowing at lower interest rates and at longer maturities? On Second Stage, the Minister pointed out that the specific rates charged by HBFI will be bespoke and will reflect the credit risk of each particular project, the quality of collateral, the creditworthiness of the borrower and the track record of the borrower in delivery of residential development projects to date. The Minister of State needs to clarify if there is a problem with the amendment. Does it create a difficulty?

We are trying to be helpful. We want to get this fund up and running. It will not be a silver bullet for the woes in the construction industry but it could play a useful role in providing funding at reasonable rates to enable construction projects to hit the ground running and to deliver the units we all want to see, whether they be social, affordable or other. We will come to that by way of the second amendment. I am not altogether clear on the position of the Government in regard to the reason the amendment is not desirable from its point of view.

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