Dáil Éireann Debate, Tuesday - 9 April 2024
687. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage the cost to the Exchequer resulting from funding the Land Development Agency either directly or indirectly through other public bodies such as the ISIF each year since 2018, in tabular form; and if he will make a statement on the matter. [15005/24]
Amharc ar fhreagra688. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage the impact on the Exchequer of the Government decision in 2023 to provide the Land Development Agency with an additional €1.25 billion in funding through the ISIF; and if he will make a statement on the matter. [15006/24]
Amharc ar fhreagraI propose to take Questions Nos. 687 and 688 together.
The Land Development Agency (LDA) was established on an interim basis in September 2018 through S.I. No. 352/2018. The Land Development Agency Act 2021 was signed into law in July 2021. Following the commencement of the relevant provisions of the LDA Act, the interim LDA entity was dissolved and all functions and staff of the interim LDA entity transferred to a new LDA Designated Activity Company (DAC) on 31 March 2022. This LDA DAC was incorporated by the Company Registration Office in December 2021.
The annual cost to the Exchequer of the interim LDA entity between September 2018 and its dissolution in 2021 is set out in the table below:
|
2018 |
2019 |
2020 |
2021 |
|
€ 254,000 |
€ 2,408,000 |
€14,100,000 |
€16,600,000 |
As a commercial State body, the commercial activities of the LDA DAC are not funded by the Exchequer. However, funding is provided to cover expenditure associated with their non-commercial functions. The annual Exchequer cost of the LDA following the dissolution of the interim LDA entity and the establishment of the LDA DAC is set out in the table below:
|
2022 |
2023 |
|
€ 535,000 |
€ 1,124,000 |
Exchequer funding of €3.8 million is being provided to the LDA for 2024 which is to cover expenditure associated with their non-commercial functions. These functions are detailed under Section 29 of the LDA Act 2021 and include the maintenance of the Register of Relevant Public Lands, the development of a report to Government on relevant public lands and any functions associated with the development of a Strategic Development Zone as provided for under Part IX of the Planning and Development Act 2000, as amended.
The LDA currently has access to:
• €2.5bn of equity capital from the Ireland Strategic Investment Fund (ISIF),
• €1.25bn of borrowings as provided for under the LDA Act, as well as;
• €1.25bn that can be raised by the LDA through the performance of certain functions.
This funding is in addition to the Exchequer funding associated with their non-commercial functions referenced above.
Of the €2.5bn available through ISIF, the LDA has, to date, drawn down approximately €900m of this funding - €100million on establishment, €525 million paid over two tranches in H1 2023 and a further €300m in November 2023.
The additional funding provided will enable the LDA to advance its key work - developing social and affordable housing on vacant or underutilised state lands. Under the LDA's Business Plan 2024 – 2028, the agency will provide 12,900 - primarily affordable cost rental - homes over the lifetime of the plan. This is a significant contribution to the overall objectives within Housing for All.
