Dáil Éireann Debate, Tuesday - 9 June 2020
692. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if capital expenditure by the Land Development Agency is not subject to the Public Spending Code, Cost Effectives Analyses or his Department’s four stage approval process; and if so, the reason all of these public spending control mechanisms apply to local authorities when developing social and affordable housing but not to the Land Development Agency. [9877/20]
View answer693. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the details of and measures to be undertaken of the capital allocation to the Land Development Agency of €16,500,000 in 2019 and €13,500,000; the controls in place to ensure that this expenditure conforms with value for money and spending code rules; and the details of the spending made in 2019 and to date in 2020 of the funding drawdown of €467,000 and €2,500,000, respectively. [9891/20]
View answerI propose to take Questions Nos. 692 and 693 together.
The day to day management of the Land Development Agency (LDA), including spending on capital projects, is a matter for the Chief Executive and his management team reporting to the LDA Interim Board. In line with all commercial and non-commercial State bodies, the LDA is required to comply with the Code of Practice for the Governance of State Bodies, including ensuring that robust and effective systems are in place to ensure compliance as appropriate with the Public Spending Code.
The LDA Board is required to ensure that it has regard to appropriate models for investment appraisal for the appraisal and management of all investment proposals, including the Project Lifecycle introduced in the new Public Spending Code. In addition under the Code of Practice for the Governance of State Bodies, the Chairperson of each State body, including the LDA, should confirm in its annual report that the organisation is adhering to the relevant aspects of the Public Spending Code.
My Department has responsibility for the safeguarding of public funds expended from the Department’s Vote and in accordance with the Code of Governance, is required to be satisfied that the requirements of the Code are being properly implemented and observed. It is intended that my Department will be assisted in this regard by the advice provided by NewERA in exercise of its statutory advisory role under the National Treasury Management Agency (Amendment) Act 2014. At present there is a Memorandum of Understanding between my Department and the LDA. Once the legislation to establish the LDA as a commercial state body is enacted, the LDA will be subject to the usual Departmental oversight arrangements for Commercial State Agencies as set out under the Code of Practice for the Governance of State Bodies. In line with other commercial state bodies, when capital commitments are being entered into, the LDA will be required to seek Ministerial consent.
At present, funding is provided to the LDA through my Department's Vote to meet its operational costs as well as initial capital funding in relation to the development of its projects. Following enactment of the LDA's primary legislation, it will be capitalised through the Ireland Strategic Investment Fund (ISIF). This ISIF financing will be used to progress the LDA's portfolio of projects and it is not envisaged that the LDA will receive funding allocations from my Department's Vote at that stage. In line with other State agencies, the LDA is responsible for ensuring it has its own systems in place in line with the Public Spending Code as set out above.
€13.5 million of the LDA's 2019 capital allocation of €16.5m was rolled over into 2020 as the LDA's projects were at initial pre-planning stages during 2019 and thus did not incur significant expenditure. The capital funding to date has been used by the LDA to undertake pre-construction works in relation to their sites, including feasibility appraisal and master-planning and the details of this expenditure is an operational matter for the LDA.
As with all State bodies operating under the aegis of my Department, arrangements have been put in place by the LDA through which Oireachtas members can request information directly from the Agency in relation to operational matters - in this regard, the LDA may be contacted directly at oireachtas@lda.ie for detailed information in relation to their expenditure.
