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Social and Affordable Housing

Dáil Éireann Debate, Tuesday - 23 June 2020

Tuesday, 23 June 2020

Questions (866, 898)

Eoin Ó Broin

Question:

866. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if the public spending code does not apply to residential developments by the Land Development Agency; if aspects of the spending code apply to such developments; if so, the parts that apply; and the way in which this application differs to capital projects led by Departments and local authorities. [12273/20]

View answer

Eoin Ó Broin

Question:

898. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if the four-stage approval process applied to local authorities for social housing construction developments does not apply to developments left by the Land Development Agency. [12272/20]

View answer

Written answers

I propose to take Questions Nos. 866 and 898 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 for 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 evaluation 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.

In line with its remit, the LDA can provide services to local authorities or work with them on a collaborative basis in relation to the development of sites for housing. In relation to such projects, the LDA, in line with other State bodies, has its own investment appraisal arrangements in place under the Public Spending Code as outlined above. The 4 stage approval process applies to local authorities where they are entering directly into a capital works programme.

Certain LDA projects will require funding from my Department in relation to social housing provision or involve other supports from the Housing Budget. In order to ensure that such funding is expended in accordance with the Public Spending Code, including procurement requirements, my Department is currently putting in place a formal protocol with the LDA, which will facilitate good budgetary management and clarity on future financial commitments.

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.

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