Bernard Durkan (Kildare North, Fine Gael)
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61. To ask the Minister for Public Expenditure and Reform if he will fund strategic infrastructural projects through the concept of Government development bonds; if such a proposal will remove the charge from the Government's balance sheet, with particular reference to areas likely to require urgent and strategic investment, such as the public authority housing programme, a nationally co-ordinated arterial drainage and flood relief programme or other areas of infrastructural deficiency needing urgent attention; and if he will make a statement on the matter. [1921/16]

Brendan Howlin (Wexford, Labour)
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The key issue faced by the Government in seeking to respond to the housing crisis or the recent flooding, etc., is not related to the availability of funding, but rather to the fiscal space available to the Government under the fiscal rules of the Stability and Growth which restrict the Government's ability to increase expenditure, including on capital projects. Any funding that would be raised through the issuing by Government of a new Development Bond, as suggested in the question, would be on-balance sheet in General Government terms.  As a result, any such funding would have no impact on the fiscal space available to the Government and would not provide any additional capacity for further Exchequer expenditure without equivalent spending cuts in other areas or tax increases, in order to continue to comply with the fiscal rules.

The Deputy will recognise that maintaining fiscal sustainability and economic stability under the Government's fiscal framework will ensure that Ireland retains the hard-won restored confidence of international financial markets to meet its ongoing funding needs.  This is central to the continuance of Ireland's economic recovery, securing further reductions in unemployment, achieving further gains in living standards and ensuring the continued development of our public services.