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Land Development Agency

Dáil Éireann Debate, Wednesday - 5 May 2021

Wednesday, 5 May 2021

Ceisteanna (91)

Richard Bruton

Ceist:

91. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the way that the size of the capital and borrowing limits for the Land Development Agency has been decided; the estimated level of forecast construction and creation of a land bank in the key growth centres that this could support; and if he will make a statement on the matter. [22673/21]

Amharc ar fhreagra

Freagraí scríofa

The Land Development Agency (LDA) was established on an interim basis in September 2018, by way of an Establishment Order made under the Local Government Services (Corporate Bodies) Act 1971, pending the enactment of primary legislation when it will be established as a commercial State agency.

In accordance with the Programme for Government, legislation to establish the Land Development Agency (LDA) on a statutory basis is being progressed as a matter of urgency. The Land Development Agency Bill 2021 will focus on the establishment of the corporate form and financial structure of the Agency. The Bill recently concluded Second Stage in Dáil Éireann.

Once the primary legislation is in place, arrangements will be finalised for the capitalisation of the LDA with funding of up to €1.25 billion being provided from Ireland Strategic Investment Fund (ISIF). The overall capitalisation of €1.25 billion for the LDA from ISIF, along with its borrowing ceiling of €1.25 billion, are prescribed in the LDA Bill which the LDA was consulted on during the Bill drafting phase. This capital will be utilised by the LDA to support the delivery of its projects on an economic basis in line with the provisions of the Bill.

The capitalisation of €1.25 billion was decided by Government on 7th September 2018 prior to the launch of the LDA. The New Economy and Recovery Authority (“NewERA”)(a business unit of the National Treasury Management Agency) advised the Department of Housing and the Department of Finance on the appropriate borrowing limit for the LDA, which was set at €1.25 billion.

I can confirm that all of the LDA's funding requirements to date have been provided for by my Department. The LDA has been progressing significant preparatory work on its existing sites made available to them with potential for 4,000 homes, with feasibility, planning and other preparatory work already initiated and is also developing a pipeline of additional sites.

The LDA intend to deliver cost rental housing at scale, which would enable them to recycle their initial capitalisation for future developments. If additional capitalisation of the LDA is required in the future, the matter will be considered at that time.

Question No. 92 answered with Question No. 88.
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