Dáil Éireann Debate, Thursday - 26 February 2015
69. Deputy Lucinda Creighton asked the Minister for Finance the reason he, or his Department, did not consult with the Central Bank of Ireland, before announcing a mortgage insurance proposal, in May 2014; if he intends to continue with the proposal; and if he will make a statement on the matter. [8651/15]
View answerIn May 2014, the Government launched "Construction 2020" which set out a focused programme of action to deliver a strong, sustainable, well-financed, competitive and innovative approach to construction and housing. The implementation of the strategy, which is overseen by the Department of An Taoiseach, sets out the relevant public bodies and other agencies that are involved in the various action points contained in the strategy including the particular action point which relates to the concept of mortgage insurance. The strategy also outlines how the Department of Finance intends to work with other relevant bodies including the Central Bank. The Central Bank was afforded an opportunity to contribute to this process, as indeed the Central Bank subsequently afforded my Department the opportunity to comment on the related proposals for macro prudential measures in relation to residential mortgage lending. As the Deputy will be aware, the Central Bank acting in its capacity as independent regulator of financial service providers has now put in place new macro prudential measures for residential mortgage lending. The concept of mortgage insurance is an issue that will now have to be further considered in the light of these new macro prudential rules and of housing market developments more generally.
