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

I appreciate that. To all Senators, to Senators Gavan, Higgins, Fitzpatrick and Maria Byrne, I appreciate the late time. These amendments are not related to the directly elected mayor, DEM. They are being brought in because there is an immediate need to increase funding around housing both to the LDA and to increase the borrowing capacity of the Housing Finance Agency. I have looked for more detail. I will read out a further briefing which I will circulate to you but it is self-explanatory.

The LDA's 2024 to 2028 business plan proposed delivery of approximately 14,000 homes by 2028. To deliver housing on this scale requires a significant increase in funding due to increase in ambition and a change in the balance of subsidised versus market rate housing to be provided by the LDA since its inception. There is currently provision in the National Treasury Management Agency Act to allow them to borrow up to €1.25 billion, however, due to changes in prevailing interest rates it is now unviable for the LDA to seek significant debt funding.

The LDA is also approaching the cap provided for the NTMA Act of €1.25 billion in equity. It is currently in the advanced stages of negotiating for numerous large-scale housing projects which will provide hundreds of social and affordable units. However, without an increase to the ceiling of equity allowed under the Act, they will not be able to commit to any further projects without an increase in equity provision. It is now a matter of urgency. That is the reason this particular Bill was used. It is the Bill that is coming before the Houses with immediate impact. As such, delivery of their business plan will require an increase in equity in the LDA beyond the €1.25 billion provided for in the NTMA Act. The LDA board cannot agree to enter these commitments unless they are confident that the LDA has access to the funds necessary to meet the costs of these contracts as they arise.

Cabinet agreed in December to increase the equity provision in the LDA from €1.25 billion to €2.5 billion. That was on 20 December. As such, an amendment to the NTMA Act is urgently required to increase the funds provided to the LDA. The amendment is also required to avoid impacting the LDA delivery pipeline of housing 2024. It is very much around housing. I appreciate the points Senators have raised. I will circulate that note. These are very simply housing activation measures on both accounts, increasing borrowing capacity. The increase in borrowing capacity of the Housing Finance Agency was specifically signalled in Housing for All, where action 18.5 states that there will be a review after two years to increase the Housing Finance Agency's borrowing capacity to €12 billion. That will bring a large number of additional homes. I ask that Members support these amendments which are very much around housing activation.