Tommy Broughan (Dublin Bay North, Independent)
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152. To ask the Minister for Finance if he has given consideration to establishing special savings schemes in State financial institutions and credit unions whereby older persons would be encouraged to invest in funds which might be used exclusively for affordable mortgages for younger persons as suggested by many senior persons. [39182/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is the responsibility of credit institutions (including those in which as Minister for Finance I have a shareholding interest) and other commercial lenders to raise the funds required for their lending operations, including the provision of residential mortgage loans.  Deposits continue to be the most important source of funding for the provision of mortgage and other loans by commercial and non-government lending entities and these entities have to compete in the market for that finance. 

Regarding credit unions, they can, subject to Central Bank regulatory provisions, provide mortgages to members and some do.  However, credit unions are currently under-lent and are looking at ways to grow their loan book rather than savings.

In terms of raising debt finance to fund the provision of public services, including the provision of local authority residential mortgages, such finance is raised by the NTMA and other relevant bodies and the State is currently in a position to raise debt finance at very competitive interest rates. There are, therefore, no plans at present to introduce a hypothecated savings scheme specifically to finance the provision of mortgage loans.