Jan O'Sullivan (Limerick City, Labour)
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33. To ask the Minister for Housing, Planning, Community and Local Government if he has considered a proposal by the credit union movement to fund social housing; if consideration has been given to changing the current regulatory framework to facilitate such a funding mechanism; and if he will make a statement on the matter. [28479/16]

Joan Collins (Dublin South Central, Independent)
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48. To ask the Minister for Housing, Planning, Community and Local Government the status of the negotiations between the Irish League of Credit Unions, the Central Bank, the Department of Finance and his Department since 1 June 2016 in relation to the ILCU's offer of €2 billion to facilitate the building of social housing. [28422/16]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 33 and 48 together.

The agreed Programme for a Partnership Governmentrecognises the potential role that credit unions can play in housing finance and supports the efforts of the Registrar of Credit Unions at the Central Bank to gradually lift current lending restrictions as appropriate, including for housing. The Programme further provides that we will investigate with all stakeholders how credit unions can support the delivery of social housing.

The Rebuilding Ireland: Action Plan for Housing and Homelessnessemphasises the need to look at new ways of funding social housing delivery, in particular the need to provide structural, funding and policy supports to increase delivery of social housing by Approved Housing Bodies. In that context, it states that support will be provided to an Irish Council for Social Housing/sector led new special purpose vehicle, involving investors which could potentially include the credit union movement.

The Irish League of Credit Unions (ILCU) has also set out a proposed means by which funding could be provided by credit unions to Approved Housing Bodies for the development of social housing. My Department has met with the ILCU on a number of occasions to address technical aspects of its proposal.

The Central Bank commenced a number of new regulations for credit unions on 1 January 2016. Prior to their commencement, following careful consideration, the Central Bank made a number of modifications, including to Regulation 25(2), which makes reference to the fact that the Central Bank may prescribe, in accordance with section 43 of the Credit Union Act 1997, further classes of investments for credit unions which may include investments in projects of a public nature. The effect of these modifications is that regulation 25(2) now provides that investment in projects of a public nature can include, but are not limited to, investments in social housing projects.

I acknowledge the modifications made by the Central Bank and the willingness of credit unions to actively seek a role in financing the delivery of social housing.

Conscious of the independence of the Central Bank in its regulatory role in respect of credit unions, bilateral engagement has taken place between my Department and the Department of Finance to consider the potential regulatory and legislative implications of credit union involvement in the social housing sector. My Department and the Department of Finance met with the Central Bank on 21 April 2016 to provide information of a technical nature in relation to social housing funding arrangements. This was with a view to assisting the Central Bank in understanding how these arrangements operate, as it deals with issues arising from proposals put forward for credit union investment in social housing.

My Department received an update from the Irish League of Credit Unions on its progress on 31 May 2016 and responded on 1 June 2016. Since then, my Department has met with representatives from the ILCU on two occasions, during July and August 2016.

Ultimately, the funding mechanisms required will have to be put in place in the first instance by the ILCU itself, with the support of its members and with the agreement of the Central Bank. My Department will continue to contribute to this process by providing necessary technical advice and support.