Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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22. To ask the Minister for Housing, Planning, Community and Local Government if he will respond to this Deputy's submission to his office and his senior departmental officials on the proposed social housing public private partnership for Dublin City Council, South Dublin County Council, Wicklow and Kildare County Council. [17087/17]

Simon Coveney (Cork South Central, Fine Gael)
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The submission in question has been received from the Deputy and is currently being reviewed in my Department.  A detailed response will issue in due course.

At this point, however it should be noted that I do not propose to abandon the PPP financing model being pursued, as has been recommended in the submission.  The Social Housing PPP programme provides for an investment with a capital value of €300 million and is expected to deliver 1,500 social housing units in total, via three bundles. The PPP programme complements the increased Exchequer-funded capital expenditure which is part of the Rebuilding Ireland Action Plan.  PPP is just one of the methods of delivery being pursued under the Action Plan.  As an off-balance sheet source, it provides a means to access otherwise unavailable finance.  It should also be noted that the Programme is subject to comprehensive value for money tests, details of which, and the manner in which the tendering process is to be conducted, are set out in my reply to the Deputy's Question No. 163 of 8 March 2017.

The PPP programme will use what is termed an ‘availability based’ PPP model, in which a private sector company designs, builds, finances and maintains the social housing units over a 25 year period in return for a monthly ‘unitary payment’.  The ‘availability based’ model being applied has been used successfully in Ireland to deliver roads, schools, primary healthcare centres and courthouses.  The housing units will be handed back to the local authority after 25 years in a predefined, good quality condition.  The sites will remain in State ownership for the entire period.

The relevant local authorities will retain responsibility for tenant nominations and the allocation of units during the contract period.  Tenants allocated to PPP units will be drawn from the local authority social housing waiting list in accordance with that local authority’s allocation scheme.  The tenants will be subject to standard arrangements as apply to other social housing allocations, including in respect of the charging of differential rent.

The project comprising the first bundle of sites is being overseen by an established corporate governance structure.  The Project Board is chaired by the Chief Executive of Dublin City Council and each local authority is represented by a Director of Service.  My Department has two nominees, with the National Development Finance Agency also represented.  An independent Process Auditor attends Project Board meetings to assure that correct procedures are followed.  This structure operates effectively and provides for local authority participation and oversight in respect of the project.

The Deputy's submission addresses some other issues on which my Department will respond directly, having considered the matters further.