Michael Kitt (Galway East, Fianna Fail)

I thank Senator Bradford for raising this issue. I reassure the Senator that meeting housing needs through the current range of housing programmes remains at the very top of the Government's agenda. In particular, the voluntary and co-operative housing sector has a proud record of achievement in the provision of accommodation for people with special needs and low income families under the capital assistance scheme, CAS, and capital loan and subsidy scheme, CLSS, respectively. Since their inception in the 1980s, more than 21,000 homes have been provided to households in need throughout the country under these two schemes. This represents a considerable success story by any measure of social housing delivery.

Even in these times of more constrained public finances, support for voluntary housing remains a priority for my Department and I am confident that we will be in a position to substantially meet our ambitious Towards 2016 target to start 6,000 new voluntary houses between 2007 and 2009. More than 4,000 of these have already been delivered, at a cost to the Exchequer of some €850 million. This is a clear demonstration of our commitment to supporting the valuable contribution by the sector in meeting housing needs of vulnerable groups and households.

The voluntary and co-operative housing programme is delivered through two schemes, namely, the CAS and CLSS. Resources under these schemes are substantially committed for this year, the third year of the initial Towards 2016 delivery period. It is, therefore, timely that we take the opportunity to look ahead and, taking account of the changed economic situation, begin the process of preparing a new multi-annual programme to underpin future progress. The very active voluntary and co-operative sector has already submitted an impressive number of new projects for consideration in future years.

This brings me to the project in question, an application for 12 sheltered housing units at Bridesbridge, Castlelyons. This project has not been refused. It remains under consideration, in the context of the overall pipeline of projects designed to provide new accommodation for households with special needs. My Department and the local authority are engaging closely with the voluntary group concerned to consider issues of the project's compliance with our "sustainable communities" policy requirements, in addition to the various capital appraisal and procurement requirements for publicly funded projects.

All construction projects, including those undertaken by approved housing bodies, must now be procured under the new forms of contract for publicly funded projects. This has been communicated to local authorities on several occasions in the past three years. Three circulars issued from my Department between October 2006 and August 2007 highlighted these new requirements. Following an examination of the procurement process undertaken for this project, my Department advised the local authority that it did not appear to comply with the requirements of the new forms of contract. I understand that this has since been communicated to the community council and the need for compliance with the new procurement requirements has been emphasised. It is a matter for the approved body concerned, in the first instance, to consider its next steps.

I re-emphasise my Department's commitment to supporting the voluntary and co-operative housing sector as part of our overall approach to meeting housing need. Obviously, our capacity to do so will be subject to the level of resources available. Individual projects will have to meet our "sustainable communities" objective as well as comply with various capital appraisal and procurement requirements. In this way, we will maintain a solid foundation for continued progress, and value for money, in meeting housing need through the voluntary and co-operative sector.