Plans for Nama to supply 80 houses a week

Finance Minister Michael Noonan will outline plans in next week’s budget to address the housing crisis with Nama supplying up to 80 houses a week by the end of the year.

The Coalition is now expected to front load spending for some measures this year, in a bid to get around EU restrictions which prevent it allocating more than €1.5bn for next year under budget 2016.

This comes after the Department of Finance last night released its white paper, which outlined substantial supplementary payments being made available to ministers before the year’s end.

It means that money to plug spending gaps in health, social protection, transport and education will be made available to ministers now, which will give them more space for spending next year.

Final preparations are under way for next Tuesday’s budget, the outgoing Coalition’s last one before the general election.

It is expected the Coalition will stress that measures announced could be multiplied or built upon in future budgets — if the Coalition is returned to government after the general election.

Measures flagged by the Coalition to be announced as part of a potential €1.5bn package include money for more gardaí, teachers, public sector pay increases as well as tax cuts.

Reductions in the much-hated Universal Social Charge by at least 1.5% are expected as well as an increase in the threshold where the higher rate of income tax kicks in for workers.

Measures to help the self-employed, farmers, pensioners and school class sizes are also expected to be announced on Tuesday.

While an increase of up to 50c in duty may be slapped on cigarettes, sources familiar with the budget planning say there will unlikely be any increases in taxes on alcohol or fuel.

It has also emerged that Mr Noonan will tell the Dáil next Tuesday of a plan by Nama to potentially help supply some 20,000 extra housing units by 2020.

With planning in place in many sites owned by Nama and other units complete, sources familiar with its plan say up to 80 housing units a week could be made available for private purchases by the end of the year.

The bad loans agency will give a full report to Mr Noonan by the end of the month on the plan.

Tánaiste Joan Burton yesterday said next week’s budget would include raising the minimum wage, investments in health and funds for education and older people

“I’m sure that the budget will see a significant improvement in living standards in 2016 for everybody right across the country,” she said.

Meanwhile, the Anti-Austerity Alliance has proposed an alternative budget where an emergency extra tax of 2% would be applied on the country’s millionaires. AAA have also proposed scrapping water charges and property taxes.