Conor Sheehan (Limerick City, Labour)
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76. To ask the Minister for Finance his plans to increase the borrowing capacity of local authorities and if he will make a statement on the matter. [31084/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Budget 2025 included more than €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.

The Government believes that the State has a strong role to play in the housing market and this is evident from the increased levels of social and affordable housing constructed in recent years.

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 cannot provide it alone, and must attract additional, diverse, and stable sources of finance.

Furthermore, it is clear that increased spending in isolation 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.

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.