Cabinet to announce €100m infrastructure fund

Local authorities are to be given a fund to build infrastructure servicing sites owned by developers under a new scheme to be announced by the Government today.

The establishment of the fund, expected to be worth more than € 100 million, will go towards helping to build access roads and other local infrastructure that may be lacking in certain areas, thus holding back the development of lands.

The scheme would mean the cost of providing such infrastructure would be at least partially borne by the State and not the builder. It is part of wider Government efforts to make the cost of developing houses cheaper.

Local projects

The programme for government says: “We will re-prioritise the capital programme to put in place a new € 100 million Local Infrastructure Housing Fund, from which local authorities can deliver local projects needed to unlock development land in high demand areas.”

It is understood Minister for Public Expenditure Paschal Donohoe will bring a memo to Cabinet outlining a proposal for a new fund to be administered by local authorities.

Minister for Housing Simon Coveney had earlier promised the Government would be announcing a "big initiative" on housing this week. The Cork South Central TD said the move would be designed to "get sites moving more quickly than they have actually been moving".

Mr Coveney had previously said the Government would help private developers to build homes by reducing their costs. This could be done by bringing down the cost of accessing finance for builders or reducing the costs associated with construction, such as access routes into estates.

He also said, in such circumstances, it would be Government’s aim that most of those homes and apartments would be affordable or in the € 250,000- € 300,000 range in Dublin.

Purchase powers

The programme for government also commits to reviewing compulsory purchase order powers open to councils to fast track “the opening up of land in both public and private housing developments” but is unclear if this will be announced today.

Also at Cabinet, Minister for Health Simon Harris is to update his colleagues on the conclusions of the UN Human Rights Committee, which last week demanded that Ireland's constitutional ban on abortion be lifted.