Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

82. To ask the Minister for Finance if he is aware of reports that the National Asset Management Agency has sold land with zoning for 11,000 residential units, but only 900 have been built to date; if he regards this as contrary to the best outcome; and if he will make a statement on the matter. [39978/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In supporting viable residential development in response to market demand, NAMA does not hoard development land. It has been keen to facilitate other market participants in their attempt to get access to sites which could contribute to residential supply.  In this respect, NAMA, fully in accordance with its obligations under Section 10 of the NAMA Act to maximise the achievable financial return to the State through its management and disposal of assets securing its loans, has overseen the sale by its debtors and receivers of zoned sites with capacity to deliver approximately 11,000 new residential units in the Dublin area.  However, as the Deputy points out, to date just 900 of these units have been built or are under construction.  This may reflect a number of issues, including planning impediments, the difficulties surrounding commercial viability at current sales prices and costs, and the return expectations of some market participants who have decided not to build until prices are higher.  The consequence of these issues generally in the market place is that not enough new residential units are being built to meet demand.

Against that backdrop NAMA's commitment to funding, on a commercial basis, additional residential supply not only helps it to obtain the best achievable return on its assets by enhancing disposal values but also helps in terms of making a wider social and economic contribution.  I am advised that, since the start of 2014 NAMA has funded the construction of over 2,000 new houses and apartments across 46 development projects in the greater Dublin area.  A further 2,200 new units are under construction across 39 development projects in the Dublin area and planning permission has been obtained for a further 4,400 new units, on which construction is expected to commence in 2016.

The Deputy will also be aware that, at my request, the NAMA Board has carried out a preliminary, high-level analysis of development sites controlled by its debtors and receivers with a view to identifying the scope for residential delivery over the five-year period to the end of 2020.  Based on this preliminary analysis, the Board has informed me that a delivery target of 20,000 residential units before the end of 2020 is potentially achievable.  This 20,000 is in addition to the 2,000 units delivered prior to my Budget announcement in October.  NAMA's commitment to funding additional residential supply, on a commercial basis, is a positive step and I am sure that the Deputy welcomes the announcement.