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Minister Coveney urged to scrap controversial housing PPP proposals – Ó Broin

3 April, 2017 - by Eoin Ó Broin TD

Sinn Féin Housing spokesperson Eoin Ó Broin TD has urged Minister Coveney to scrap controversial proposals to use Public Private Partnerships to deliver social housing units. The first tranche of 500 units is currently under consideration involving Dublin City, South Dublin, Wicklow, Kildare, and Louth Councils. Dublin City Councillors are set to debate the proposals tonight. 

Deputy Ó Broin said:

“Last week, I contacted the Department of Housing and outlined a number of serious concerns Sinn Féin has with these PPP proposals. 

“Some key concerns include these projects ability to deliver value for money for the taxpayer and the complicated nature of the contacts involved. There is a growing consensus that PPPs do not deliver the value for money to justify the additional financial costs charged by the private bidder. 

“The complex nature of the State-PPP consortia contracts also has the potential to expose the taxpayer to additional financial costs particularly when there are disputes or failures to comply with the original agreement.

“The use of PPPs overcomplicates and delays the delivery of much needed social housing. Using this model of housing social delivery and assuming that there are no delays, disputes, or contractual defaults, it will take up to three years to deliver 500 units.

“Sinn Féin wants to see the delivery of these much needed social housing. However, there are some serious questions the Department and the Minister needs to answer around the use of this particular funding model. 

“The Minister should scrap the current proposals and fund the first tranche of 500 units either via 100% central government capital financing or with low interest Housing Finance Agency loans.” 

Note: Please find full submission made to the Department of Housing attached

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