Louis O'Hara (Galway East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

397. To ask the Minister for Finance if he will consider raising the borrowing cap for local authorities to facilitate the delivery of new housing; and if he will make a statement on the matter. [11030/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Budget 2025 included a record €6 billion in capital spending for housing, including direct Exchequer spending, investment by the Land Development Agency and borrowing by the Housing Finance Agency. This level of public spending supports the State’s involvement in every aspect of housing — land purchase, construction, purchasing and funding through a number of channels for delivery.

My Department estimates that to deliver c.50,000 units per year, around €20 billion in development finance will be required. That level of sustained investment is such that the State can only be part of the solution, and must attract additional, diverse, and stable sources of finance.

Moreover, it is clear that increased spending alone will not solve the challenges in the housing system. There are a number of recognised structural and real-economy barriers to homes being built. These include, inter alia, planning delays, labour shortages, and structurally higher costs.

On its own, increased public spending will not solve these problems. Instead, the Government is addressing these issues in a sustained and coordinated way, most notably with implementation of the Planning and Development Act, which will provide greater clarity and certainty, improve the investment environment and boost output.

Housing policy is a matter for the Department of Housing, Local Government and Heritage and any request for changes to local authority borrowing policy should be considered in the context of housing policy overall.