Dáil Éireann Debate, Thursday - 9 May 2024
157. Deputy Rose Conway-Walsh asked the Minister for Finance if the HFA lending is included in the general Government balance projections in the stability programme update; what amount is accounted for in each year from 2024 to 2027; and if he will make a statement on the matter. [21084/24]
Amharc ar fhreagra158. Deputy Rose Conway-Walsh asked the Minister for Finance if Housing Finance Agency lending is included in the general Government balance projections in the stability programme update; the amount that is accounted for in each year from 2024 to 2027; and if he will make a statement on the matter. [21144/24]
Amharc ar fhreagraI propose to take Questions Nos. 157 and 158 together.
The Housing Finance Agency (HFA) is classified as a non-commercial agency within the general government sector. On this basis, the revenue and expenditure of the HFA are included in the calculation of the general government balance.
As the nature of the HFA’s activity is to borrow or raise funds to on-lend to local authorities, the voluntary housing sector and Higher Education Institutions, to be used by them for any purpose authorised by the Housing Acts, the majority of their accounts (lending and on-lending) are financial transactions and do not impact the general government balance.
However, the HFA’s staff costs plus interest it pays, less any interest it receives on its lending to off-balance sheet entities, does have an impact on the general government balance.
In addition to this, when the lending from the HFA is used to fund expenditure by a general government agency (local authority, AHB etc.), it will negatively impact the general government balance. As the survey process covers these general government agencies, this expenditure is included in the forecasts of the general government balance as laid out in the SPU.
My Department collects the data for a specific purpose and is mandated to compile the general government forecasts and publish at the aggregate level as required by our legal reporting obligations. The method in which the data is collected and compiled mirrors practices in the CSO. Similarly, the CSO publish at the aggregate level. Therefore, I cannot provide data at the individual level from a government agency.
