Dáil Éireann Debate, Tuesday - 14 May 2024
236. Deputy Rose Conway-Walsh asked the Minister for Finance if the ISIF chose to make commercial investment by lending to approved housing bodies to deliver costs rental accommodation; whether this would be included within the General Government Balance; and if he will make a statement on the matter. [21566/24]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) has a statutory mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland. In line with this mandate, ISIF focusses its efforts on making transformational investments across its impact themes of Housing and Enabling Investments, Climate, Scaling Indigenous Businesses, and Food and Agriculture.
In respect of housing, ISIF’s investments typically support the private delivery of new mass market homes as opposed to investing directly into housing opportunities that are reliant principally on state funding for their primary source of income.
As the Deputy may be aware the Housing Finance Agency (HFA) under the ambit of the Minister for Housing, Local Government and Heritage lends to AHBs among others to support the delivery of social and affordable housing. The HFA’s primary source of funding for this purpose is a multi-billion Euro Loan Notes Programme with the NTMA which is guaranteed by the Minister for Finance under Section 11 of the Housing Finance Agency Act, 1981 (as amended).
The ISIF and Approved Housing Bodies (AHBs) are classified within the general government sector of the economy. Given the HFA’s current significant role in supporting rental accommodation provision, using ISIF to support such activity is not something that is being contemplated. If it were to become possible any such lending itself is likely to be considered as inter-government borrowing and the flows would be financial transactions, which by itself would have a neutral impact on the general government balance. However, once any such lending was used by the AHBs to fund expenditure related to cost rental accommodation delivery it would be recorded as general government expenditure, negatively impacting on the general government balance.
