Joan Burton (Dublin West, Labour)
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191. To ask the Minister for Finance the progress his Department has made in respect of the EUROSTAT investigation into the establishment by the Government of a bond to finance social housing investment suitable for credit unions to invest their surplus funds in; and if he will make a statement on the matter. [16363/17]

Michael Noonan (Limerick City, Fine Gael)
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As previously referred to in Parliamentary Question number 208 of 28 February 2017, the Government has been exploring potential mechanisms that would facilitate investment in social housing, including the off-balance sheet potential of private institutional investment. Ireland Strategic Investment Fund (ISIF) led engagement on the Housing Fund mentioned in Rebuilding Ireland, with a number of actors including both the Central Statistics Office (CSO) and Eurostat, is currently ongoing.  

The agreed Programme for a Partnership Government recognises the potential role that credit unions can play in housing finance.  Officials from both my Department and the Department of Housing, Planning, Community and Local Government have met with credit union representative bodies on a number of occasions to examine how credit unions can assist in the area of social housing.  Officials from both Departments have also met with the Central Bank.  The Central Bank is currently engaging with the sector on proposals for credit unions to provide funding for social housing and has stated that while it does not comment on specific proposals, such investments could be facilitated by future regulations made by the Central Bank, where appropriate.

The Central Bank has also stated that it is willing to consider the type of regulations that would be required to facilitate such proposals. Ultimately, any funding mechanisms will have to be put in place in the first instance by the credit unions themselves, with the support of their members, and with agreement of the Central Bank.