Batt O'Keeffe (Cork North West, Fianna Fail)

I apologise to Deputy Durkan for any unintended confusion caused last week. Disallowance was sought based on my Department's understanding that this was a contractual issue between the voluntary body and builder concerned. The Department was not aware at the time of the mixed-tenure nature of the development.

I thank the Deputy for raising this matter. I take the opportunity to acknowledge the significant contribution being made by the voluntary and co-operative housing sector in delivering on social housing need. To date, some 20,000 units of accommodation have been provided by the sector to meet the needs of low income families and special needs groups. The development in Leixlip, County Kildare, comprises 61 social units and 45 voluntary units, of which 17 are funded under the capital assistance scheme and 28 under the loan subsidy scheme. There are a further 27 private sites, subsidised under my Department's low cost sites scheme, while the development also includes the provision of some community facilities.

The voluntary housing body, Respond, was engaged to develop the scheme on behalf of Kildare County Council. The individuals allocated the 27 private sites grouped together to form Easton Mews Limited in order to develop the sites. The contractor for the whole development, including the development of the private sites, is MDY Construction Limited. The current approved funding is over €17 million, comprising approximately €9.3 million for the social housing, €6.6 million for the voluntary housing and €1.2 million for the private sites.

The contract between Respond and the contractor is substantially complete at this stage. The footpaths and the final surface dressing of access roads were the last items to be provided under the contract and the final account for the completed scheme is being examined by Respond. At this point, the outstanding matters relate to the apportionment of the final account costs between the different elements of the development.

My Department's role in the implementation of voluntary housing projects relates primarily to the provision of funds for individual projects. There is over €500,000 of approved funding available for recoupment from my Department for the voluntary development on receipt of the appropriate claims from Kildare County Council. The administration of the scheme and the certification that individual projects meet the terms of the scheme are the responsibility of the relevant local authority. The terms of the contract between the voluntary housing body and the chosen contractor are matters for the parties themselves. My Department is not privy either to these terms or any provisions in the contract regarding site development works or access roads. Therefore, I am not in a position to give details of the contractual arrangements in this case.

On 2 October 2007 Kildare County Council submitted a revised budget application seeking additional funding in respect of the 27 private sites. This application is being examined by the Department and the authority has been asked to clarify a number of matters. The application will be dealt with as soon as possible on receipt of the clarification sought.

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