Dáil Éireann Debate, Thursday - 5 October 2023
159. Deputy John Lahart asked the Minister for Finance if he is considering any measures to leverage the billions in savings accounts held by Irish people into investment opportunities in areas such as State affordable housing vehicles or other investment vehicles directed towards the public good; and if he will make a statement on the matter. [42889/23]
View answerI take it that the Deputy is referring to funds including those deposited by the public in banks, investment funds and also those lent to the state as part of State Savings.
Through State Savings the citizen is already supporting the State to the tune of c.€20 billion. State Savings Fixed Term products and Prize Bonds are placed in the Central Fund of the Exchequer and used to fund expenditure and investment by the State. They also form part of the National Debt of Ireland.
Well-functioning and well regulated commercial banks are essential to the operation of the economy and deposits from individuals and companies play an important part in the operation of an efficient and effective banking system.
Establishing investment structures to attract individual savings from the pool of existing savings (whether from state savings or the commercial banks) would require careful consideration as to its usefulness, impact and other challenges that would be required to establish such investment structures.
I would say that in terms of the specific area of public expenditure mentioned i.e. housing the reality is that the Government has significantly increased investment in this area in recent years. Under my colleague, the Minister for Housing, the housing capital budget for this year is €2.6 billion, with €7.2 billion allocated towards housing in the past three years. “Housing for All” is backed by the State’s largest ever housing budget, with in excess of €20 billion in funding through the Exchequer, the Land Development Agency and the Housing Finance Agency over a five-year period.
As a result, we are already seeing progress on social housing. In 2022, there were 7,433 new build social homes delivered, the highest level since 1975. The pipeline of public homes is encouraging. At the end of Q1 2023, there were 8,005 social homes on site and 13,269 homes at design and tender stage.
Outside of housing there is a significant public capital programme in place running between 2021 and 2030 which will increase investment across the State.
