Mick Wallace (Wexford, Independent)
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24. To ask the Minister for Housing, Planning, Community and Local Government his views on the figures released by the CSO at the end of September 2016, which showed almost one fifth of new housing purchases in Dublin over the past two years were made by investment funds and REITS; his further views on the effects this will have on both the rental market and the property market; and if he will make a statement on the matter. [35476/16]

Simon Coveney (Cork South Central, Fine Gael)
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A lack of additional housing supply coming on stream over the past decade or so in the areas of strongest demand is one of the principal root causes of our current housing crisis. Activity by institutional and professional residential sector investment specialists such as Real Estate Investment Trusts (REITS) in purchasing housing and engaging in the building out of part completed schemes and commencing new housing projects is a positive signal of investment beginning to flow back into the housing sector to provide the housing that people need. The acquisition and management of properties by professional Real Estate Investment Trusts (REITS) is one component part of a more sustainable, long-term property rental market for both investors and tenants. While commercial property investment has been a key focus for some of the REITs launched to date in Ireland, residential property also forms part of the sector's interest and exposure. It is expected that the sector will continue to develop over time and in so doing to increase the supply of professionally managed, good quality, secure and affordable rented accommodation.

Historically the private rented sector in Ireland has been largely made up of small-scale landlords, who will continue to provide the bulk of private rented accommodation. However, a more diverse sector, which includes institutional investors specialised in providing and managing larger scale residential rental projects, is more stable and less exposed to property market risk and volatility. Institutional investors can also help provide the range of tenancy options that households need across their lifecycles. Attracting large-scale investment in property has an important role to play in helping to deliver the professional high-standard rental sector that tenants deserve.

The Urban Waste Water Treatment Directive sets out the requirements for the collection, treatment and discharge of waste water from urban areas/agglomerations. Compliance with the requirements of this Directive is reported annually by the Environmental Protection Agency in their Urban Waste Water Treatment Report. In September 2013, the European Commission commenced formal infringement proceedings against Ireland regarding non-compliance with the requirements of the Directive in the case of certain named agglomerations. An additional letter of formal notice issued from the European Commission in September 2015.

In January 2016, my Department, assisted by Irish Water, and in consultation with the Environmental Protection Agency, responded to the Commission in relation to the infringement. The response set out the plans in place, including timeframes, to ensure compliance. This was followed by a 6 monthly progress update which was sent to the European Commission in July 2016.

In September 2016, a reasoned opinion on this infringement issued from the European Commission. My Department, with the support of the Environmental Protection Agency (EPA) and Irish Water, is currently preparing a response which will be completed before the end of November 2016. While these legal proceedings are still ongoing against the State, it would be inappropriate of me to comment further on the matter.

Since 1st January 2014 Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels, including the management of urban waste water collection and treatment infrastructure. Irish Water has set out in its Water Services Strategic Plan its approach and strategies for the delivery of these services in a manner that will protect the environment and provide wastewater services in an efficient and economic manner. The strategic approach involved, supported by the planned investment for the period to 2021 outlined in more detail in Irish Water’s Business Plan, will play a critical role in ultimately supporting Ireland’s compliance with relevant EU water legislation.