Dáil Éireann Debate, Tuesday - 2 October 2018
640. Deputy Brendan Griffin asked the Minister for Housing, Planning and Local Government if the use of stage payments in turnkey social housing projects will be sanctioned to accelerate the uptake and delivery of these projects; if stage payments will be sanctioned on contracts agreed which have not commenced; and if he will make a statement on the matter. [40093/18]
View answerLocal authorities have been making productive use of turnkey development opportunities to achieve delivery of new social housing since the commencement of the Rebuilding Ireland Action Plan. Under the procurement arrangements that apply to such transactions, an initial 10% is usually paid as a deposit and the balance of the funding is provided on completion and delivery of the housing units in a 'turnkey' condition. An option for turnkey projects can also be to agree delivery on a phased basis, which allows for payment to be made to the developer on completion of each individual phase.
While I am always open to innovative approaches to housing delivery, I cannot depart from the procurement requirements that apply to 'turnkey' transactions. I have been heartened by the strong level of successful delivery we have achieved around the country for new social housing using the turnkey approach, the evidence of which can be seen in the most recently published social housing construction quarterly status report, covering the period to the end of Quarter 2 of 2018, which is available at the following link: http://rebuildingireland.ie/news/minister-murphy-publishes-latest-social-housing-construction-report/ .
In many cases, the developments being supported through these turnkey arrangements would not go ahead without the certainty of the end purchaser and they are particularly beneficial where local authorities have limited or no lands available for housing in an area.
