Fergus O'Dowd (Louth, Fine Gael)
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Question 176: To ask the Minister for the Environment, Heritage and Local Government if he will make a detailed statement regarding representations made by him to banks, financial institutions and the National Asset Management Agency and other Departments on some banks refusing to agree to support his Department approved schemes from local authority and housing associations for the leasing of unoccupied dwellings; the number of schemes refused; the number of dwellings involved; the amount of moneys refused; and if he will make a statement on the matter. [9874/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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My Department is not directly involved in the agreement of any actual leases under the long-term leasing initiative. While I am aware that discussions have taken place between a range of relevant parties regarding the initiative, including the banking sector, voluntary and cooperative housing bodies, and the National Asset Management Agency, my Department would generally not be aware of the details of individual negotiations on specific proposals.

However I understand that the response from the banking sector generally to the long term leasing initiative has been disappointing to date and the numbers of units yielded from the banking sector has fallen short of my expectations. It would appear that some of the banks have failed to see the potential for them in leasing, by creating a revenue stream.

To assist all parties involved in advancing proposals under the leasing initiative, my Department developed a set of principles which were agreed by the Irish Council for Social Housing, the City and County Managers Association and the members of the Irish Banking Federation.

The parties agreed that "Government measures to enable financial institutions return to their day to day business of making credit available to the Irish economy will support direct lending by financial institutions. Approved housing bodies will thus have greater access to funding for the acquisition or construction of residential housing units to be used under the Government's long term leasing initiative, and, accordingly, the financial institutions will give full and commercially based, objective consideration to any such borrowing proposals received, and will reach determinations on such applications within a reasonable timeframe". I am also exploring all options with relevant Ministers to further support a more meaningful engagement from the banking sector.