Emer Higgins (Dublin Mid West, Fine Gael) | Oireachtas source

I thank the Senator for his comments. I appreciate that this is not the news that he or his constituents are seeking. However, as he said, at least it is some level of clarity.

Tusla remains committed to providing the infrastructure and accommodation required to support vulnerable children, young people and families. Equally, it has responsibility to ensure that all investment decisions represent the best use of public funds. In this particular case, despite what I was told was extensive engagement, protracted negotiations and legal mediation, Tusla has concluded that the terms proposed by the developer did not represent appropriate value for money over the lifetime of the proposed lease and accordingly has decided not to proceed. Tusla recognises the impact of construction inflation. As a result, it made a significant uplift on its original offer. The additional increase sought could not be justified, however, when benchmarked against comparable projects across both Tusla and the HSE. That comes back to the value-for-money argument.

While it is very disappointing that this project could not proceed on the terms proposed, it is essential that all public investment decisions are guided by strong governance, rigorous scrutiny and a steadfast commitment to value for money. As mentioned previously, the Minister, Deputy Foley, wishes to reassure the local community that the need for services in Castlebar remains a priority. That is why a medium-term accommodation solution has been secured. Identifying and delivering a sustainable, long-term solution for the Senator's area remains a priority.