State silence on €5bn social housing loan

The Irish League of Credit Unions (ILCU) has criticised the Government for failing to formally respond to its offer of a €5bn loan for social housing.

ILCU president Brian McCrory said yesterday that communication with the Government over the offer is a roundabout that seems to be interminable.

Last October, the ILCU formally submitted a proposal to the Government to provide €5bn in funding for social housing.

The money would then be lent to approved housing associations, with the aim of providing up to 26,000 social housing units by 2021.

The Government has not yet formally responded to the offer, but in a statement the Department of Finance said a number of meetings on the matter had taken place.

Speaking on RTÉ radio, Mr McCrory said the ILCU has been in correspondence with a number of departments since last year but, in the meantime, the money is sitting in deposit accounts, getting less than zero return.

A Department of Finance spokesman said the proposals were still at an early stage, while the Department of the Environment, which is responsible for implementing social housing policies, said it would continue to engage constructively with the ILCU.

The housing charity Respond yesterday saluted the credit union offer to help Ireland deliver the social houses we need.

“It shows the credit unions have the wider interests of Ireland at the heart of their business model and wish to contribute to the common good,” said Respond CEO, Ned Brennan. “The Government has everything to gain from approving the Credit Union plan. We have no time to lose.”