Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

The Department of housing, with the Minister for housing’s approval, decided not to proceed to award the contract for social housing bundle 3 through a public-private partnership. The basis for that decision was that the cost per unit was more than €1 million and almost double the cost of similar units delivered in 2020. Unit costs at that scale would not be compatible with the overall delivery of what we need in our social housing targets. The Government and the relevant local authorities remain absolutely committed to delivering the social housing that the bundle was being designed to provide for. The Department of housing is now working with its programme leaders, the National Development Finance Agency and the four local authorities, to urgently advance these projects through an alternative procurement and delivery strategy. The Department is also initiating a review of future social housing through bundles to consider all options and determine the optimal procurement and delivery strategy for the Exchequer.

I acknowledge the need in the Deputy’s community and the fact that these projects have received planning permission. However, when the cost per unit escalates to €1 million per home it will have knock-on consequences for other social housing projects down the line, both this year and in future years, in the context of the overall allocation for social housing. We need to maximise the delivery of supply in how we manage the social housing allocation in total. Part of that has been reflected in the Government's response of making increased provision for social and affordable homes as an in-year budgetary decision this year. We are cognisant of the local need. That is why there is an urgency in the Department of housing to work with the delivery partners on how we can identify an alternative procurement and delivery strategy to deliver much-needed homes in the Deputy’s community.

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