Ann Phelan (Carlow-Kilkenny, Labour) | Oireachtas source

I thank the Senator for raising this issue. Funding was allocated by my Department to Cork local authorities in regard to social housing for the years in question across a range of expenditure subheads. In some cases, funding was issued on the basis of a distribution of the available national funding across all local authorities. For example, funding in respect of housing adaptation grants for older people and people with a disability is allocated to all local authorities based on a national budget secured by my Department and drawn down in line with the allocations issued. In other cases, funding is allocated for a specific project. For both Cork local authorities, variations in expenditure across the overall capital expenditure programme in 2013 and 2014 range from underexpenditure of 8% to overexpenditure of 42%.The overspend was in programmes for upgrading, refurbishment and reinstatement of vacant housing units where both Cork local authorities were in a position to draw down additional funds over and above their allocation in 2014.

There can be a range of issues that give rise either to higher or lower spends against allocations. My Department officials stay in ongoing contact with their counterparts in the local authorities regarding drawdown levels and may make adjustments where one local authority notifies a potential underspend and another may have capacity and need to spend more. An underspend in one housing budget line in one particular year does not mean that projects go unfunded. For example, on social housing construction projects a local authority may anticipate a level of funding drawdown on a project based on anticipated advancement of the project in a particular year. While funding may be allocated in a particular year for this purpose, it is not unusual, with construction activity, that projects may not progress at the speed anticipated and drawdown may, as a consequence, be less than allocated. However, as there are contracts to be honoured in respect of construction projects, my Department and the local authorities will provide funding for legitimate construction costs even where they are presented later than anticipated.

Given the variance that can arise with housing spending, the position revealed by the figures does not always tell the full story. As local authorities are the housing authorities for their areas, however, it is right and proper that responsibility is vested in them to deliver social housing services. Their performance in that regard is overseen, in the first instance, by the elected members of the respective local authorities. Social housing is a key priority for this Government and my colleagues, the Minister and Minister of State, Deputies Alan Kelly and Paudie Coffey, both in this House and in the Dáil, regularly address issues relating to the overall national picture for delivery.

Social housing delivery for a particular local authority area should be and is, I have no doubt, a key issue of debate and questioning in the council chambers, in this case in Cork City Council and Cork County Council. This Government's important local government reform policy, Putting People First - action programme for effective local government, highlighted that a key requirement for an effective and accountable system of local authority governance is the effectiveness of the elected councils in setting policy and rigorously overseeing the performance of their organisations. For that very good reason, I believe that the possibility of any social housing funding being unspent and returned to the Department should be rigorously overseen by the elected members locally.