Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

This is a question that has been asked, and answered, many times. I last answered it in the Dáil last October and my colleague, the Minister of State, Deputy English, also answered it during oral parliamentary questions a few weeks ago. Each time, it has clearly been stated that the Government is not and has never committed to establishing a special purpose vehicle, SPV, on behalf of the organisation mentioned by the Deputy. There has been extensive engagement from my Department and the Department of Housing, Planning and Local Government with this organisation since 2015. Following analysis of its two proposals and meetings with the organisation in question, both Departments stated in writing that the second of the proposed models, the establishment of an SPV by credit unions, was the most suitable. In July 2016, Rebuilding Ireland separately committed to establishing an innovation fund to support the development of innovative financial models. It has been repeatedly clarified both in writing and indeed in answers to parliamentary questions that this commitment was not to establish a State-owned SPV, but rather to provide funding to help develop a sector-led approved housing body SPV.

In respect of supporting credit unions in the provision of funding for social housing, the role of the Government and the Central Bank is to ensure there are is an appropriate legislative and regulatory framework. In this regard, the Central Bank has now revised the credit union investment regulations to enable credit unions to invest in social housing via an SPV.

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