Written answers

Tuesday, 13 December 2016

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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167. To ask the Minister for Finance if he will direct NAMA to engage with the Irish Glass Bottle Housing Action Group that have been seeking a meeting regarding the potential for building significant quantities of social and affordable housing on that site, which they own; and if he will make a statement on the matter. [39744/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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It is important to stress that NAMA  is not a property developer and does not own the site to which the Deputy refers. Rather, NAMA's role is that of a secured lender to the property owner. As a secured lender, NAMA may provide funding to its debtors and receivers where it is shown that this will increase the overall recovery for NAMA from the security being funded. Such funding is entirely consistent with NAMA's mandate to secure maximum return to the Irish taxpayer.

NAMA was established as a commercially independent body mandated to achieve its Purposes under the NAMA Act. Chapter 2 of the NAMA Act provides for the establishment of the NAMA Board whose functions are to operate NAMA in accordance with the Act, and to oversee the commercial operation of NAMA. Under Section 14 of the NAMA Act, the Minister may issue directions concerning the achievement of the Purposes of the Act as set out in Section 2 of the Act. The Deputy will note that all previous Directions issued to NAMA have been technical in nature and did not relate to individual assets nor NAMA's commercial decisions. The list of directions is available from the NAMA website: .

The NAMA Act bars political interference for good reason. There is no role for political interference with the commercial decisions of NAMA, such as any proposed funding strategy for the site the Deputy references. From the outset, the Oireachtas worked to ensure NAMA would be independent in its decision-making to avoid a position where others, whether for political or commercial self-interest or for other reasons, would seek to influence decision-making in a way that would serve vested interests.

As such, issuing a direction to NAMA is not a measure that I take lightly. I have no reason to believe that NAMA is not operating within its mandate and progressing its objectives, as required by the NAMA Act in achieving the Purposes of the Act. Therefore, I do not propose to issue a direction, regarding the achievement of the purposes of the Act, at this time.

Perhaps more importantly for the Deputy's question, Dublin City Council is specified as the Development Agency for the purposes of the Planning Scheme under the Poolbeg West Strategic Development Zone designation in accordance with Part IX Section 166(3) of the Planning and Development Act 2000 and accordingly intends to prepare a Planning Scheme.

I am informed by Dublin City Council that as part of its initial research, Dublin City Council has undertaken a consultation process in relation to this scheme. This non-statutory phase has helped to inform the process, ensuring that all relevant considerations are taken into account in the preparation of a Draft Planning Scheme. On 5 July 2016 a newspaper notice prepared by Dublin City Council was published in the Irish Times to advertise the consultation period. It invited interested individuals and bodies to submit ideas or comments on matters relevant to the preparation of the Draft Planning Scheme. The deadline for submissions was 4 August 2016. It was also emphasised that all comments/submissions would become a matter for public record and would be taken into account  in preparing the scheme. To coincide with the consultation period, a series of public information sessions was organised in the local area during July.

The consultation sessions provided an opportunity for members of the public to discuss aspects of the SDZ with Dublin City Council staff. I understand that these sessions were well attended and those in attendance raised a broad range of issues and concerns which related not only to the area within the SDZ boundary, but also to the surrounding areas. In addition to these sessions, representatives of groups who wished to discuss the content of a submission made could arrange to meet a member of the planning team. These meetings were then held during the week of the 8th-12th of August.

The Council's SDZ planning team is now preparing a report on the consultation process and the content of all submissions received. In parallel, research work is continuing and this includes consultation with relevant statutory bodies. These research processes, along with the development parameters defined in the Government Order and Draft City Development Plan 2017-2022 will inform the early development Draft Planning Scheme through the analysis stage, to the development of a concept plan(s) for the site.

Further updates will be provided on the Dublin City Council website () on how this process is proceeding along with details of further public consultation. Once the Draft planning scheme is complete a statutory public display period will take place and this will last for 6 weeks during which time submissions will again be invited. I would suggest that the Irish Glass Bottle Housing Action Group actively participate in the consultation phases of this planning process.

Separately, I have consistently explained that NAMA cannot subvent the supply of social housing. Section 10 of the NAMA Act requires NAMA to act in a commercial manner to obtain the best financial return for taxpayers. In line with NAMA's obligations under Section 10, all residential projects, including any which may be envisaged for the Glass Bottle site, will be required to pass a stringent commercial viability threshold before NAMA approves funding and funding will only be made available if it is expected to increase the overall recovery for NAMA from the security being funded. NAMA is obliged to act akin to a private sector commercial entity.

With NAMA estimating that 20,000 residential units may be delivered under its Residential Funding Programme between 2016 and 2020, the corresponding Part V contribution of 2,000 social housing units should not be forgotten. As with any delivery of housing, the Part V contribution is a meaningful contribution to social housing supply. However, for the reasons outlined above, it is not appropriate to direct or dictate a particular strategy to NAMA. The Agency cannot fund the development of residential units, private or social, on anything other than commercial terms.

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