Tuesday, 9 April 2019

Questions (174)

Catherine Martin

Question:

174. Deputy Catherine Martin asked the Minister for Public Expenditure and Reform when the additional funding required for the Rebuilding Ireland home loan scheme will be decided; and if he will make a statement on the matter. [16230/19]

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Written answers (Question to Public)

The Rebuilding Ireland Home Loan launched on 1 February 2018. Prior to its launch, an initial tranche of €200 million of long-term fixed-rate finance was borrowed by the Housing Finance Agency to provide funds for the scheme to local authorities.

When the Rebuilding Ireland Home Loan was initially being developed it was estimated that the drawdown of loans under the scheme would be approximately €200 million over three years. From the data collated on the scheme to date, it is clear that there has been a greater demand for the RIHL than initially anticipated, as a result of which, the scheme would require a further tranche of funds to be borrowed by the HFA if it is to continue. The Department of Housing, Planning and Local Government has requested sanction for additional funding of €200m annually for 2019 to 2021 (bringing the scheme to €800m in total).

I understand the Department of Housing, Planning and Local Government are presently carrying out an internal review of the scheme. Further details on the review can be obtained from my colleague, the Minister for Housing, Planning and Local Government. In conjunction with this review, the Departments of Finance and Public Expenditure and Reform are in ongoing discussions with both the Central Bank of Ireland and the Department of Housing, Planning and Local Government with regard to the impact of the scheme. Upon conclusion of the review and subsequent discussions the Minister for Housing will be in a position to make a statement on the scheme.