Wednesday, 20 January 2021

Questions (242)

Cian O'Callaghan

Question:

242. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the level of expenditure on the site services fund in 2019 and 2020; the way in which this level of expenditure compares to VAT receipts for housing units constructed with the assistance of this fund; and if he will make a statement on the matter. [2778/21]

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Written answers (Question to Housing)

It is important to note that, rather than directly funding the construction costs of affordable homes, Serviced Site grant funding is provided to support the cost of infrastructure that will facilitate affordable housing provision on local authority lands.

The timeframe for the delivery of such projects entails the detailed design, consultation, planning, procurement and construction phases which, depending on the scale and scope of the project, can take a number of years. Reflecting the fact that the majority of Service Site Fund (SSF) projects approved in 2019 and 2020 are currently at the detailed design and planning stages, the funding drawdown to date for infrastructure construction costs is approximately €2.4 million and relates to 2020 expenditure. SSF funding drawdown will incrementally grow as projects move past the planning and procurement stages to construction.

VAT is liable on SSF projects on the same terms as any other construction project. Reimbursement of VAT costs paid by local authorities to contractors are eligible for funding under the SSF.

The Department does not collate figures on SSF VAT costs.