Matt Carthy (Cavan-Monaghan, Sinn Fein)
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118. To ask the Tánaiste and Minister for Justice and Equality the total amount that was spent on IPAS accommodation in 2024; the projected spend on IPAS accommodation in 2025; the plans he has to initiate a value for money review into contracts for the provision of IPAS accommodation; and if he will make a statement on the matter. [24688/25]

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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The Minister of State knows there has been massive profiteering in the provision of accommodation for those seeking asylum. People have become millionaires overnight providing what is sometimes unsuitable accommodation in what I would call a deeply flawed system, while many communities have lost vital local amenities, including hotels. Will the Minister of State outline the total amount of public money that was spent on IPAS accommodation in 2024, what the projected spend is for this year, and what plans he has to initiate a value for money review into the contracts for the provision of IPAS accommodation?

Colm Brophy (Dublin South West, Fine Gael)
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I thank the Deputy. I wish to start by also expressing my sympathy and condolences to Garda Flatley's family, colleagues and the community. It is a very sad occasion in which we are taking these questions here today, and they put a lot of things in context.

The Government has brought significant focus to addressing a range of complex systemic pressures within our international protection system. Ireland has adopted and is now working to implement the EU pact on migration and asylum in mid-2026. As Minister of State, my goal is to ensure a robust and enforced immigration system. The system should provide efficient processing and ensure people who meet the criteria for international protection can be accepted and integrated into our society quickly. It will also ensure that anyone who does not meet the criteria is refused protection and leaves the State.

My overall strategic approach is intended to reduce the scale of the demand for accommodation. This is against a backdrop in Ireland and other EU member states where we have responded to a very sharp and sustained increase in the number of people applying for international protection from early 2022 to the end of 2024. To illustrate this, at the beginning of 2022, Ireland's international protection accommodation services sheltered approximately 7,000 people. By the end of 2024, this had expanded by almost 400% to accommodate 32,000 eligible people.

The total cost of IPAS accommodation in 2024 was just over €1 billion. This figure is still provisional pending publication of the 2024 appropriation accounts for the Department of Children, Disability and Equality, under which this service operated during that year.

The budget allocated for this service in 2025 is €1.2 billion. The costs include both State-owned and commercially provided emergency accommodation and cover accommodation, catering, utilities, transport and other essential costs.

In managing the complex range of accommodation contracts in 325 centres, there are processes in place to ensure value for money and enforce compliance. Officials in IPAS routinely inspect services and oversee the contracts, and engage with providers and regulatory bodies. Within IPAS, these changes will see the proportion of accommodation provided on State-owned sites increased with the objective of developing an accommodation system with a reduced reliance on commercial provision.

These changes, along with other steps I am taking to improve the operation of international protection, should curtail the need to constantly grow the capacity we have seen over recent years.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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I have been raising the issue of profiteering within the IPAS system since I was an MEP almost a decade ago. I raised it as a member of the Committee of Public Accounts. The Minister of State said we spent €1 billion on IPAS accommodation last year. What he did not say was that most of that money was paid to private operations. He did not answer the question as to whether he agreed there was a need for a value for money audit and full scrutiny of those IPAS contracts.

There are serious questions. Do we know, for example, how many providers that are making millions of euro actually acquired the properties being used at a discount through NAMA? Do we know how many newly established companies that have no track record secured these types of contract? How do we have a situation where companies have just completely repurposed overnight? We have had a small café becoming one of the largest financial beneficiaries of IPAS contracts.

Do we know how many companies, benefiting to the tune of millions from what is a flawed system, are located or owned by corporations outside of the State? These are serious questions, and when talking about €1 billion of public money, the public has a right to answers. The Minister of State has not given clarification as to whether a review of the public expenditure accounts will be carried out. Will he do so?

Colm Brophy (Dublin South West, Fine Gael)
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It important to note that the IPAS has grown rapidly and by more than 400%. It is important to note there is extensive oversight of all aspects of accommodation, the commissioning process and all the processes that have been improved incrementally over the past three years. Regarding appraisal of providers, my Department carries out due diligence on accommodation being contracted, including checks on the providers via the Companies Registration Office to ensure compliance with CRO requirements, as well as checks on tax compliance and that providers have valid tax clearance certificates. All commercial offers are appraised by a dedicated team across a range of factors, including the site, its potential, the value for money to the State, that due diligence is done, and planning and regulatory measures. Consideration is also given to the location, locality and access to services in terms of health, wellbeing and security.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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I have to dispute virtually every single thing the Minister of State has just said. I know this area has just moved into his Department. The State has paid out billions of euro with virtually no transparency. There have been increasing reports of companies with no track record at all being awarded contracts to the tunes of millions of euro. A recent report concerned a company that had been awarded a contract to provide 277 beds for IPAS applicants at Dundrum, County Tipperary. The company, which is named Utmasta Limited and was set up three months ago with one director who is based in Majorca, is set to be paid millions of euro of Irish taxpayers' money. Does that make sense to the Minister of State? Has that contract been reviewed to ascertain how this could come about? To give some reassurance, can the Minister of State point to any instance where an IPAS contract has been withdrawn or cancelled as a result of any of the checks and balances that he has outlined here today?

Colm Brophy (Dublin South West, Fine Gael)
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It is important to say that standard procedures have been developed and documented for all aspects of the process. There is full transparency from the Department in terms of providers receiving payments. Details of payments over €20,000 are published quarterly online on gov.ie.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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Have any contracts been cancelled?

Colm Brophy (Dublin South West, Fine Gael)
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There is full detail and transparency within the process.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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Have any been cancelled? Will the Minister of State look into the case I asked about?