John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I am taking this issue on behalf of my colleague, the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy. I must clarify that the Minister and the Department are not party to any contract with MDY Construction, nor does the Minister have any responsibility for the development of the primary care centre, which forms part of the Senator's query.

Delivery of social housing is achieved, however, using a range of different delivery programmes and financing arrangements. This includes supporting both local authorities and approved housing bodies to engage with contractors for the construction of new social housing homes. I understand from departmental officials that MDY Construction is experiencing serious financial difficulties and that the High Court appointed an interim examiner last month, with the case due to be heard again on a date later this month. This represents an opportunity for the company to restructure its finances and seek new investment, if required.

On the 43-home scheme for older people at Dolphin Park, Rialto, FOLD Ireland is the contracting body responsible for the project, delivering on land that was transferred to them by Dublin City Council.MDY Construction Limited was contracted directly by FOLD Ireland to undertake the construction following a tender process that concluded earlier this year. My colleague, the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, formally turned the first sod on the site when construction began in April of this year. As the contracting party, FOLD Ireland is dealing directly with the issues arising from MDY's current position.

I am informed that construction work ceased on the Rialto site several weeks ago when MDY personnel left the site. Since then, and following on from the appointment of the interim examiner, FOLD Ireland has met the examiner and its law agents to discuss the options available to it, as well as the next steps to facilitate the earliest possible recommencement and completion of this project.

There is no doubt that this turn of events will delay the delivery of these much-needed new social housing homes but FOLD Ireland is doing all in its power to progress the project. It has a proven track record in providing housing specifically designed for older people. The necessary steps have been taken by FOLD Ireland to secure the site, the legal and financial issues are being addressed and FOLD Ireland is taking steps to support the earliest possible completion of the projects. The Department has been and will continue to keep in close contact with FOLD Ireland and Dublin City Council on this scheme.

The provision of the funding and support necessary to complete this project and the other social housing projects currently affected will not be an issue. Local authorities and approved housing bodies know that. They are taking the necessary steps to handle the issues involved as a matter of urgency and to move the projects forward.

These social housing homes will be completed and they will be made available to the people who need them, fully complete and built to the usual high quality in social housing developments being completed each month in many locations around the country.