Michael Conaghan (Dublin South Central, Labour)
Link to this: Individually | In context

Last week Dublin City Council decided to close a construction project site at the old St. Michael's Estate in Inchicore. That decision was unwarranted and will have serious repercussions for the entire community. We must be mindful of health and safety issues, but I understand the health and safety issues in question may have been of a minor nature. The council has cited health and safety issues, but I understand from the regeneration board that they are of a minor nature.

The health and safety authorities visited the site and issued what is referred to as a first advice notice. This is not generally considered a reason to close a construction site. My understanding is that it is intended to put people on notice that adjustments have to be made. There are widespread fears that this closure will mean the end of the work for a very long time and that the issue will go before the courts because the contractor feels it was treated unfairly. That will drag on and on.

There is a better way. The local community believes that mediation could resolve this. It has to be resolved in the best interests of the community which has waited 15 years for a regeneration project. This is simply heaping disappointment upon disappointment. It is a very serious issue that must be addressed. I believe it can be resolved but it is vital that we keep it out of the courts. There are very reputable mediation agencies which could look at these issues and bring this contractor back on site to complete this phase of a long-awaited regeneration project.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

On 17 February, the St. Michael's Estate regeneration contract with BAM Contractors was stopped by Dublin City Council. BAM was awarded the contract in late 2010 to construct the first phase of the regeneration of St. Michael's Estate. It is difficult to understand the decision by Dublin City Council to put in place a moratorium due to serious concerns over health and safety. What were the reasons? Was it due to construction, work practices or financial issues? Seventy five units were to be built in the estate, along with a child care facility and an estate office. There have been 15 years of regeneration, promises and constant fighting by residents, but now we have 11 acres of wasteland and two acres of a ghost estate.

Mediation is urgently needed between Dublin City Council, the city manager, the councillors and BAM. If necessary, the Department should intervene to sort this out. Residents have been left in the lurch, with more and more delays occurring. The worst thing that could happen to someone is to be forced to move home or to wait for a new home to be ready. How many people have put their possessions in storage and stayed in temporary accommodation while waiting for their homes to be built? There may only have been 75 units in the first phase, but we are talking about hundreds of men, women and children left in the lurch, hoping that this would be built in the near future. We need to give these people certainty that something is going to happen and that we are not going to be delayed. I urge the Minister of State to intervene if necessary.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

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.

Peter Mathews (Dublin South, Fine Gael)
Link to this: Individually | In context

The Deputies have two minutes between them to make a further statement, but I will be generous and allow three minutes between them.

Michael Conaghan (Dublin South Central, Labour)
Link to this: Individually | In context

What the Minister of State said holds out some hope for the resolution of these issues. If they cannot be resolved in that brief time, I hope the Minister of State can use his good offices to bring forward a mediation process. Everybody believes that a consensus can be reached to get this project underway.

The 15 acre site is at the heart of Inchicore village. There is a hole at the heart of the village since the old flats were demolished. Disappointment has been heaped upon disappointment, and dismay at why this work has stopped has been heaped on top of that. We must do everything possible to get this project underway and put hope in the place of dismay. I appeal to the Minister of State to meet members of the regeneration board. The board is chaired by a very eminent former senior executive of Guinness, who is a wise and well known individual. That request from the regeneration board is echoing the hope of the entire community that after 20 years of waiting, the end may at last be in sight. There is a great deal at stake and I am glad I got the opportunity to raise the issue with the Minister of State.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

It is important that a message goes out that things can be solved. I heard the Minister of State's point that there are some signs that negotiations are taking place. In the event that those negotiations fail, I hope the Minister of State and his Department officials will be available to help in any way.

This has been a huge issue for many years in St. Michael's Estate. This is a prime site in a prime location. These families want to be relocated in the area they live, among their own families and friends and facilities that they have had over the years, such as schools, hospitals and health centres. The cost in human terms is huge, so I hope the Minister of State will intervene if there is a problem.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I share the Deputies' concern that the construction of the 75 social houses and associated works on a new crèche and estate office in St. Michael's Estate is progressed to completion as quickly as possible. The Minister of State, Deputy O'Sullivan, will announce details of the capital allocations under the social housing investment programme for 2012 very shortly.

I can assure the House that substantial capital funding will be made available to Dublin City Council in order that regeneration projects at St. Michael's Estate and other areas, such as Dolphin House, St. Teresa's Gardens and O'Devaney Gardens, can be progressed as quickly as possible.

I appreciate that contractual disputes have the potential to delay the delivery of much-needed regeneration projects. I am conscious that in the case of St. Michael's Estate, there are onerous responsibilities on both the city council and the contractor to execute the contract in accordance with the terms of the contract. Given that the Department is not a party to the contract, the Minister of State, Deputy Jan O'Sullivan, cannot involve herself or interfere in any way with the dispute resolution procedures which are prescribed in the contract and which are proceeding. I share with the Minister of State and the Deputies here today the concern of all that a solution is found and that work can be progressed as quickly as possible.