John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank Deputies Ó Snodaigh and Bríd Smith for raising this matter which I am taking on behalf of Minister, Deputy Eoghan Murphy. It is unfortunate and regrettable for all concerned that MDY Construction Limited is experiencing financial difficulties and has ceased work on a number of construction sites. It is the main contractor for a number of social housing projects with Wicklow County Council, Kildare County Council, the FOLD housing association and Co-operative Housing Ireland. In all, there are around 190 new social housing units across these projects and they are at different levels of advancement. The contracting body in each case is either the local authority or the approved housing body responsible for the project delivery, and they are therefore dealing directly with the issues arising from the main contractor discontinuing construction work on these sites.

Without question, these projects will be completed in full and as soon as possible. Despite the risk of delays arising, we have seen in situations where this has happened with social housing projects before that local authorities and housing associations have done all the due diligence needed and completed the projects. That is what will happen with these projects. At this very early stage, it is a matter which local authorities and approved housing bodies are handling and the Department will continue to keep in close contact and work continuously with them to facilitate the earliest possible recommencement and completion of all the projects. The necessary steps have been taken by the local authorities and approved housing bodies to secure their sites and, as I speak, the legal and financial issues are being addressed. It would be inappropriate for me to pre-empt the appropriate decisions and actions to be taken by the contracting bodies. It is important they secure the sites, as they have done, and take the correct next steps as early as possible to support the earliest possible completion of the projects.

Regarding media reports which have suggested that these developments will become ghost estates, I note that this is simply not the case. As I have said, we intend that these projects will be completed as soon as possible and that the social housing homes will be made available to the people who need them, fully complete and built to the usual high quality we have seen with the social housing developments being completed each month. The provision by the Minister of the funding and support necessary to complete these projects will not be an issue. Local authorities and housing associations know that and they are taking the necessary steps to handle the challenge as a matter of urgency and to move the projects forward.

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