Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I thank Deputies Adams and Ellis for raising this important matter. I share the concern expressed by both Deputies that where allegations are made with regard to a conflict of interest by public servants in discharging their official duties, this has the capacity to undermine public confidence in the service and the way public money is spent and accounted for. There are robust legislative procedures in place under the Local Government Act 2001 and the Ethics in Public Office Act 1995 which set out the requirements on declarable interests and the conduct of public servants in exercising their functions. There are no exceptions to these requirements. I can certainly provide them in response to Deputy Adams's request.

New social housing supply is delivered through a range of measures under my Department's social housing investment programme, SHIP, including the construction and acquisition of social housing units directly by local authorities and by approved housing bodies, the social housing leasing initiative, the capital advance leasing facility and the rental accommodation scheme.

Louth County Council acquired 18 housing units within its administrative area during 2010 as part of the work programme financed under my Department's SHIP. I now understand that two of these were in the ownership of council employees, as indicated by the Deputies.

In 2010, when the units in question were acquired, local authorities had delegated sanction to acquire housing units. This delegated sanction applied where both the numbers of units and funding available for the acquisition programme had been agreed with my Department. My Department does not have a role in the selection of particular properties for acquisition by a local authority and would not, at any time, be aware of the identity of the vendor.

When identifying acquisitions, housing authorities are required to ensure that all the relevant issues are considered, including tenure mix and estate composition, specific local needs and that the acquisitions are appropriate for the purpose of social housing and the authority's management of its stock in so far as identified housing needs in its area are concerned. Housing authorities are also required to achieve best value for money in the acquisition of properties. It is an absolute requirement that the local authority obtains an independent valuation of each property by a suitable qualified person. I understand this requirement was adhered to in both these cases. If there is information to the contrary, I will be happy to receive it.

The matter of the alleged conflict of interest was brought to the attention of my Department in September. Following this, my Department was in touch with senior management in Louth County Council and requested a report on the alleged conflict of interest by council officials in the procedures leading to the acquisition of two properties. The county manager subsequently commissioned an independent firm of auditors and risk-assessment managers to undertake a comprehensive review of the council's social housing investment programme in 2010, including the acquisition of 18 properties and, in particular, the procedures that applied in the case of the purchase of the two houses owned by local authority employees. I understand that the review process is almost complete and that the independent consultants will report to the county manager very shortly. In fairness to all concerned, I do not propose to make any further comment on the issue until such time as I have considered the findings of the report and the views of the county manager.

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