Michael Creed (Cork North West, Fine Gael)
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Question 386: To ask the Minister for the Environment, Heritage and Local Government if he will permit local authorities to enter into contractual arrangements with the private sector for the construction and lease back of capital projects including housing, fire stations and other facilities; and if he will make a statement on the matter. [28129/09]

John Gormley (Dublin South East, Green Party)
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It is open to local authorities to enter into leasing arrangements for capital projects subject to compliance with capital appraisal guidelines issued by the Department of Finance for all publicly funded contracts and in conformity with public procurement procedures.

Earlier this year my Department issued a circular letter to local authorities setting out new arrangements for the use of leased properties for social housing purposes to assist authorities in meeting their social housing requirements. In order to promote the use of leases, a funding provision of €20 million is available for this measure in 2009. Properties that are constructed specifically for leasing to a local authority for social housing purposes may also be considered under these new arrangements, subject to proposals complying with all elements of capital appraisal and procurement requirements, including value for money criteria.