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14/03/2017

Call For Clarity On PPP Social Housing Construction Projects

The Department of Housing has been called to explain the public private partnership proposals (PPP) for social housing construction projects across Dublin.

Sinn Féin Housing spokesperson Eoin Ó Broin TD confirmed it is the first time that the Design, Build, and Operate model has been proposed for social housing development.

Deputy Ó Broin said: "The Sinn Féin team across Dublin have been looking at the proposals for the social housing PPPs and have a number of concerns. I raised the matter in the Joint Oireachtas Housing Committee last week with the Secretary General of the Department of Housing John McCarthy.

"It is due to these concerns that our councillors in Dublin City and on South Dublin county council have taken a decision to postpone taking a decision on the current proposals until more information is provided by the Department of Housing.

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"We do not want to delay the delivery of the much needed social housing. However, the right decision was made to seek a deferral as the concerns raised are significant and merit further consideration.

"The Department is proposing that private developers design, build and maintain the social houses for a period of 25 years. During that time the State will pay down the developers' costs. At the end of the 25 years, the units will be owned by the local authority.

"This model is currently used in a range of other construction projects such as schools, hospitals, and water treatment plants. Many believe that they do not represent value for money for the taxpayer.

"It is not clear from the limited information provided by Department as to why this model is being proposed for social housing delivery. In particular it is unclear why the design and maintenance elements have been included in the tenders.

"As the Department of Housing has not provided any information on the potential cost of this proposal, it is also not clear whether it represents value for money for the taxpayer.

"Whatever the origin of proposal, it is not reasonable to expect councillors to take a decision on the proposal blind to the potential costs."

(CD/LM)

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