Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

These amendments propose that three new provisions be inserted to Part 8 along with consequential amendments to the Long Title, the collective citation and the commencement provisions. These are housing activation measures. The first substantive provision proposes an amendment to the Housing Finance Agency Act 1981 to allow for the consent of the Minister for Public Expenditure, National Development Plan Delivery and Reform regarding the Housing Finance Agency borrowings and to increase the statutory borrowing limit from €10 billion to €12 billion.

The second is an amendment to the National Treasury Management Agency (Amendment) Act 2014. It would permit the Minister for Finance to direct the National Treasury Management Agency to provide the proceeds of the disposal of directed investments to the Land Development Agency, LDA. It also includes the consent of the Minister for Public Expenditure, NDP and Reform in the provision of funds from the Ireland Strategic Investment Fund, ISIF, to the LDA. The third is an amendment to the Land Development Act 2021 to make provision for the LDA to raise funds through the performance of certain functions and through measures outlined in the Affordable Housing Act.

I propose to speak to each of the amendments in turn in more detail. Amendment No. 19 amends section 10(1) and 10(3) of the Housing Finance Agency Act 1981, which relates to Housing Finance Agency borrowing. It solidifies the requirement for the consent of the Minister for Public Expenditure, NDP and Reform for borrowings. In the interests of the Exchequer, it is appropriate to include a legal requirement securing the interest of the Minister. The change would be consistent with similar provisions on the Statute Book, for example, in relation to borrowing by Uisce Éireann. Action No. 18.5 in Housing for All requires my Department to legislate to increase the borrowing capacity of the Housing Finance Agency to €12 billion, with a review in two years, to support the local government sector in land acquisition and delivery of social and affordable homes. This amendment will provide that the Housing Finance Agency is sufficiently financed in this quarter to carry out its functions without disruption in 2024. Officials in my Department have received a report from NewERA providing analysis and observations in respect of the financial and commercial aspects of the proposed increase to the statutory borrowing limit. This report has been shared with the Minister for Finance, who has given his agreement to the increased borrowing limit.

Amendment No. 20amends section 42B of the National Treasury Management Agency (Amendment) Act 2014. It relates to the provision of funds from the ISIF to the LDA. The amendment provides a requirement for the consent of the Minister for Public Expenditure, NDP Delivery and Reform for the provision of funds from the fund to the LDA, and for the payment of money to the LDA from the proceeds of the disposal of a directed investment. It further provides for the payment of money to the Land Development Agency from the disposal of a directed investment to be limited to €1.25 billion.

Amendment No. 22inserts a new Section 32A into Part 3 of the Land Development Agency Act 2021. It provides for the LDA to raise up to €1.25 billion in additional funding through the performance of certain functions outlined in the Act, and through measures outlined in the Affordable Housing Act 2021. This amendment is necessary to ensure the agency has adequate access to funds to deliver the 14,000 homes projected in its 2024 to 2028 business plan in light of changes to the balance of market rate and social and affordable housing required of the LDA. The additional funds will complement the investment of a further €1.25 billion in ISIF funding provided for in amendment No. 20. The amendment requires the consent of the Minister for Finance and the Minister for Public Expenditure, NDP Delivery and Reform for funds to be raised in this manner.

Amendments Nos. 1 and 2 amend the collective citation and commencement provisions in section 1 to take account of the miscellaneous provisions being added and the various Acts being amended by this Bill. Amendment No. 56is an amendment to the Long Title of the Bill to ensure it reflects the amendments to the Housing Finance Agency Act 1981, the National Treasury Management Agency (Amendment) Act 2014 and the Land Development Agency Act 2021. Given the critical role of the Housing Finance Agency and the LDA and the importance of providing more social and affordable housing, I ask Members to support these amendments.

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