Fergus O'Dowd (Louth, Fine Gael)

I thank Deputies Conaghan and Ellis for raising this matter. It affords me the opportunity once again to confirm the Government's commitment to the regeneration of the most disadvantaged areas of our cities and towns. Despite the challenging financial climate, we want to see real and meaningful progress made on regeneration. Capital investment in regeneration will be prioritised by the Minister of State, Deputy O'Sullivan.

Regeneration is not all about maps, plans, structures or budgets. It is about people and communities working to make these into places where they want to live and work happily and securely. We recognise that the regeneration process has not always been easy. This is particularly true of the St. Michael's Estate project. Up to 2008, Dublin City Council progressed the regeneration project under the public private partnership arrangements. There is no need to explain the background or the reasons the PPP outcome for St. Michael's Estate and other locations failed to materialise. With the encouragement of the Department, Dublin City Council established a multidisciplinary special housing taskforce with the objective of developing and implementing alternative options. The taskforce's initial strategy for the phased development of three estates, including St. Michael's Estate, was adopted by the city council in December 2008.

In 2010, the Department approved funding of €5.8 million for the social housing element of the first phase of the regeneration project, which included 75 new housing units. I understand the contractor started on site in November 2010, with a projected timeframe of 104 weeks for the completion of the project. The building works contract entered into in this case is between the employer, Dublin City Council, and the selected contractor, BAM Contractors Limited.

New forms of construction contracts for public works were introduced by the Department of Finance in 2007. These contracts apply to all housing projects, including the St. Michael's Estate contract, and contain specific conditions relating to contract performance, dispute resolution procedures and contract terminations. The contractor is responsible for carrying out the works in accordance with the terms of the contract and the works constructed must be safe and without risk to health. The employer's representative may, in accordance with the terms of the contract, issue instructions to the contractor on any matter connected to the works and the contractor shall comply with any such instruction. I understand the city council issued instructions to the contractor regarding pressing on-site health and safety concerns.

The Department has been advised by Dublin City Council that a notice to terminate the contract was served on the contractor on 15 February for alleged non-compliance with instructions issued. This decision was taken by the city council following the completion of a comprehensive risk assessment, undertaken in response to health and safety concerns at the site. The city council has further advised that, following the serving of the notice to terminate the contract, the contractor asked for a stay of ten days before a final determination of the contract is made. I understand the city council acceded to this request and that legal and technical representatives form both sides are currently involved in negotiations around the issues involved.

The Department of the Environment, Community and Local Government is not a party to the contract and given that discussions are ongoing between the relevant parties, we will await the outcome of these discussions and hope that we can progress this project to completion as quickly as possible.

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