Seanad debates

Tuesday, 1 December 2015

Commencement Matters

Local Authority Funding

2:30 pm

Photo of Colm BurkeColm Burke (Fine Gael)
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I welcome the Minister of State, Deputy Ann Phelan, to the House and thank her for dealing with this matter. I am raising it in view of the fact that there has been a quite substantial delay in getting work done, particularly in Cork City Council. On the one hand, there are people saying they are not getting funding and, on the other, there are people saying that when they get it, there is a delay since they are receiving it later in the year. I understand that although there was some funding allocated in 2013 and 2014 and a programme of works in each case, some of the work was not done, the money was not spent and, as a result, it was refunded to the Department. I seek to identify exactly where the problem is and what now needs to be done to ensure this is not repeated in future years.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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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.

Photo of Colm BurkeColm Burke (Fine Gael)
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My question asked for details of what funding was allocated but there were no such details in the Minister of State's reply, with which I am disappointed. My understanding is that €10 million was allocated to one project but €4.5 million was returned to the Department, something to which the Minister did not refer in her reply. I asked her to publish details of all housing allocated to Cork City Council. In other words, what moneys were allocated? That is not in the reply. We should be entitled to that information. I can get it under freedom of information and I do not understand why I cannot get it in this reply.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I draw the Senator's attention again to my point that for both Cork local authorities variations in expenditure across the overall capital expenditure programme in 2013-2014 ranged from 8% underspend to an overspend of 42%. If the Senator has specific projects in mind, we will undertake to get more detail for him. Perhaps he would engage with some of the local members to-----

Photo of Colm BurkeColm Burke (Fine Gael)
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I am sorry but the Department should be able to give me figures for what is allocated to a local authority.I want to know what funding is allocated to local authorities, because we have been told that insufficient funding has been given.

Photo of Paddy BurkePaddy Burke (Fine Gael)
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There is no provision for questions.

Photo of Colm BurkeColm Burke (Fine Gael)
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We need specific figures and I am entitled to them.

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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I shall undertake to see what we can get specifically for the Senator.

Photo of Colm BurkeColm Burke (Fine Gael)
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I thank the Minister of State.