Dáil debates

Tuesday, 18 September 2018

Saincheisteanna Tráthúla - Topical Issue Debate

Social and Affordable Housing

6:30 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I do not know if the Minister of State is aware of the financial situation of MDY Construction. Some reports suggest it is in receivership or, if not, it is definitely in financial trouble, given that all of the subcontractors have taken all of their equipment and left all of its sites. This has left social housing units either just started, half-complete or literally days from completion.

What I want from the Minister of State is reassurance, in particular for those waiting for housing in Orchard Meadows in Cherry Orchard, where this week 35 homes were meant to be allocated to families who have been waiting for them, some of whom have managed to delay their notice to quit from landlords but who now have very insecure tenancies because they were meant to move into these new homes this week. At Dolphin Park, which is a senior citizens complex where the Minister turned the sod in April, the project was flying ahead but is now totally stalled. There are other sites where work has stalled, for example, at Kilbride in County Wicklow, where more than 40 social housing units were due to be ready next year. The reassurance I am looking for is that everything that can be done will be done to deliver these homes to the families who are waiting for them, in particular the homes in Cherry Orchard, which are in a state of readiness. I visited the site twice in the last month and I see no reason these homes cannot be allocated to the families who have already been told which house they will have. Let us think about that. They have already put their children into schools locally in anticipation of the move, given the project has already been delayed by a number of months thus far.

That is one job of work. The other job that needs to be tackled by this Government is the continuous abuse of subcontractors. Here again we have workers and subcontractors with no wages and no income, which will cause other financial difficulties, if not collapses of small companies. This needs to be borne in mind.

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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To add to that, I doubt if there are many in this House who can imagine what anticipation, hope and joy a family have when they are told, after years of waiting, with many of them in homeless accommodation, that this is their home. Deputy Ó Snodaigh spoke about the homes in Cherry Orchard, which are gorgeous. They are passive housing and have lovely fitted kitchens and so on. They are waiting to be occupied but we then hear that MDY Construction has gone under. We are not sure how it has gone under but I am told by local council officials that there is the involvement of a vulture fund. Will the Minister of State tell us if it is the case that a vulture fund has called in a historical debt from this building company, which is involved in building State-funded affordable and social housing? If that is the case, are we not in a mad situation in this country where vulture funds are literally handed, for little or no money, profitable land and housing? They have gobbled up nearly everything that remained from the crisis through NAMA and they are being given more and more each day. Now, it appears their actions are halting the much-needed building of social and affordable homes.

This is like another Carillion, except that this time it affects people who have been on housing waiting lists for long periods in places like Cherry Orchard, Rialto and Wicklow. How do we justify this?

We need answers and, more importantly, action. While the local authorities are doing their best, as stated by the Department, what does that amount to when 36 families are anxiously waiting to move in and a whole set of residents have been discommoded because there is no capacity to move the mounds of earth surrounding their estates or reopen their park? All of this is happening. Days go by, rumours spread and the community is losing hope. They do not deserve that. With all of his plans for a housing development agency, the Minister, Deputy Eoghan Murphy, must take action. We also need answers as to what has happened here.

6:40 pm

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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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.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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MDY did not cease building, rather the subcontractors ceased to build because they had not been paid. They have removed scaffolding and all of their equipment from the sites because, once again, subcontractors have been screwed by a bigger company which would not pay them what was due. The other people who have been screwed in this instance are the tenants, in particular those in Cherry Orchard. The reason I focus on them is that the houses in Cherry Orchard were ready to be occupied. I have visited quite a number of them in the past month and I note that they are in walk-in condition. They are of a high standard. The families have visited them and been told what number they will have. A woman I spoke to yesterday was in floods of tears because she is due to leave her rented accommodation on 3 October. She had managed to get an extension from May on the basis that she would be in by July. That is what people were told originally. A significant number of the other tenants who will be moving in have children with autism and other disabilities and have been looking forward to homes with gardens. They have enrolled their children in local schools and, while they remain away from the vicinity, they have had to make travel arrangements for the past two months to Ballyfermot and Cherry Orchard.

Dolphin Park is next to an existing facility for senior citizens, which it is to replace. That is 43 houses. There is also a primary care centre. Communities are asking what assurance they can be given that there will be no undue delay. I want the Minister of State to provide a commitment, in particular in the case of Cherry Orchard, that people can move in this week. The houses which have not been handed over are within a day of being finished.

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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We have to take very seriously the urgent need to complete the projects and move people into their homes in Cherry Orchard. One of the subcontractors says it is disgraceful how things have gone with Ireland's housing crisis. He says it is not MDY's fault, but is rather something in the background we do not know about, which is having a knock-on effect with every supplier and subcontractor. He says that while MDY wants to fulfil the contracts, it cannot for whatever reason.

I ask again. Is a vulture fund involved in pulling MDY's money and pursuing a historical debt? If so, will we eventually do something about the use of vulture funds in the property market in this country? It is causing untold misery for all of these families in Cherry Orchard and beyond. I say to those in Cherry Orchard, Rialto and everywhere else who have been affected that the best thing they can do is be outside the Dáil on 3 October for the national housing demonstration to call on the Government to end once and for all the use of the private market to deal with the public housing crisis. The Government must build social and affordable houses on public land and stop using private markets where companies are themselves being caused hardship when vulture funds pull out. Will the Minister of State answer the question on vulture funds and provide a commitment that the houses will be occupied?

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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I have provided the commitment that the houses will be occupied as soon as possible. I am not familiar with the financial situation of MDY but I will try to find out and ascertain if I can the reasons for its financial difficulties. They have not been brought to my-----

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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Will the Minister of State email us?

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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I will get the officials to respond, if they are in a position to do so, on the financial difficulties of MDY. The issue raised by both Deputies on subcontractors is a valid one and the subject of at least one Private Member's Bill. There may be others. There have been other examples nationally in recent times where subcontractors have been left high and dry following the collapse of larger construction businesses.

On the points Deputy Ó Snodaigh makes about Cherry Orchard, I note that of the 72 units to be constructed, 36 are completed and 36 are under construction and due, originally, to be completed by November 2018. I cannot give a commitment that they will be occupied this week, but I can try to establish from the local authority and the approved housing body when it is expected they will be occupied. As someone who has been involved in politics for 20 years, I understand the sense of hope for a family who have been on a housing list for a long time. They know the house they are supposed to get, but this suddenly happens and they do not know when they can move in. It is certainly not a position the Government supports in any way. Those 36 houses should be occupied as soon as possible. We will revert to the Deputies with specific answers to the questions.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Is the Minister of State, Deputy Finian McGrath, taking Deputy Donnelly's matter?

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Tá sé as láthair. We could have used this time.

Photo of Finian McGrathFinian McGrath (Dublin Bay North, Independent)
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It is a very important health issue, namely, an update of the health budget.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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As the Member who tabled the next matter is not present, we will proceed with the Thirty-seventh Amendment of the Constitution (Repeal of offence of publication or utterance of blasphemous matter) Bill 2018. Do we have a Minister to deal with the matter?

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael)
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We do not have one, a Cheann Comhairle.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I suggest someone needs to wake up and realise there is a responsibility to have people here.

The House stands suspended for five minutes, pending the arrival of whomsoever may deign to join us.

Sitting suspended at 6 p.m. and resumed at 6.05 p.m.

6:50 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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As we still do not have a Minister, does Deputy O'Callaghan, as the only Member present, wish to propose that we suspend for a further five minutes?

Photo of Jim O'CallaghanJim O'Callaghan (Dublin Bay South, Fianna Fail)
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That is probably suitable. I think the Government and, indeed, all Members of the House are anxious that this legislation be dealt with expeditiously. It is unfortunate that others are not here yet.

Sitting suspended at 6.05 p.m. and resumed at 6.07 p.m.