Claim of ‘cuckoo fund roadshow’ rejected by Taoiseach

Taoiseach Micheál Martin has rejected Sinn Féin claims that the Ministers for Finance and Housing are conducting a “cuckoo fund roadshow” to further encourage investment funds into the Irish housing market.

Mr Martin said it was "not true" as Sinn Féin leader Mary Lou McDonald claimed that Paschal Donohoe and Darragh O'Brien were ready to "dust off the red carpet again" for investment funds.

The Taoiseach insisted “there is no roadshow” and accused Ms McDonald of “rank hypocrisy” and “bluff and bluster”. He insisted the Government’s commitment.

But Ms McDonald said “your Ministers have set out on a mission to attract in more of the very funds that wrecked the housing market and robbed people of an affordable roof over their heads”.

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“There is no public support for this insanity. People want a change of direction,” and a Government that will “take the lead and build homes that workers and their families can afford to buy and rent,” she said.

“And that’s where your focus should be, and that of your Minister, not cosying up even further with cuckoo funds.”

Mr O’Brien also intervened and said “it’s not true. You should withdraw that.”

Ms McDonald raised the issue following a report in the Irish Mail that investor roadshows to attract “sustainable investment in residential accommodation” and targeted at financial institutions and funds would go ahead.

Department of Finance officials have suggested that Mr Donohoe and Mr O’Brien should attend an event for institutional investors to explain the Housing for All plan.

Neither Minister has confirmed they will attend such a roadshow. An event is expected to take place early in the new year.

The Housing for All plan states that the Department of Finance should “lead communication and engagement with institutional investors, including trade show events, to communicate policies and encourage sustainable investment in residential accommodation”.

Earlier this year, the Government said it would move to ban investment funds and other institutional investors from bulk buying housing estates after it transpired that entire developments had been purchased by funds, squeezing out individual homebuyers.

It later introduced a special 10 per cent stamp duty on the purchase of 10 or more units.

The Sinn Féin leader said that following the controversy over the purchase of a development in Maynooth, Co Kildare by an investment fund over the heads of home buyers, the Taoiseach’s response was “limp”.

The 10 per cent stamp duty would be “easily absorbed” by funds who were still paying zero tax on the millions they raise “on the outrageous rents they charge”. She asked if Mr Martin was aware of the roadshow and if he approved.

But accusing her of rank hypocrisy and insisting “it’s not true”, Mr Martin said “there’s a lot of bluff and bluster coming from you repeatedly on housing with nothing to back it up”.

The Taoiseach said the fundamental tenet of Government policy has been providing the largest funding in the history of the State to housing including construction capital funding over €4 billion next year.

The Government’s interest is in “making sure people can either rent or buy a house at an affordable rate”.

He added that “there has to be a private sector dimension to housing. We do want private sector activity in the market, but the primary intervention from Government is public housing”.