Dáil Éireann Debate, Thursday - 7 December 2023
1. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage to outline the details of the financial support package for a trust (details supplied) agreed at Cabinet last week; and if he will make a statement on the matter. [54356/23]
View answerAs the Minister of State knows, we have all been watching events unfold at the Peter McVerry Trust with a level of real seriousness for the many people who depend on that service and the service itself. I understand a significant amount of work has been going on in the background and an agreement was reached for a financial support package at Cabinet last week. Will the Minister of State make a statement on the matter?
I thank the Deputy. The Department’s role regarding homelessness involves the provision of a national framework of policy, legislation and funding to underpin the role of local authorities in addressing homelessness at a local level. Statutory responsibility in the provision of homeless services rests with individual local authorities. The named organisation informed the Dublin Region Homeless Executive, DRHE, and the Department of potential financial issues in the organisation in July 2023. The organisation also advised that it had separately informed the Charities Regulator and the AHB Regulator, AHBRA. The Department and the DRHE formed an oversight group chaired by an independent governance and legal expert to review the financial and governance issues raised and to advise the Minister accordingly. The DRHE also appointed PwC to undertake a review. Preliminary and final reports were provided to the oversight group. Following the oversight group's review of the recommendations from PwC, the Minister received a letter from the chair of the group. Having considered the contents of the chair's letter and the information provided, the Minister's priority was to ensure that the services provided to homeless individuals and families would continue uninterrupted. In this regard, proposals for the provision of funding on an exceptional basis were considered by Government. On 28 November, the Government approved funding on an exceptional basis of up to €15 million to be paid to the named organisation. Funding may be paid between December 2023 and 31 March 2024 on a phased basis, subject to the provision of relevant information. Funding is also conditional on the named organisation complying with a range of conditions related to financial management and governance.
I commend Mr. Francis Doherty, the chief executive at the time, who brought these matters to light at the Department, the DRHE and the appropriate regulators. Unfortunately, for reasons already in the public domain, he resigned a short time afterwards. I also acknowledge the significant role played by the Dublin Region Homeless Executive. I welcome the appointment of the former chief executive of South Dublin County Council, Daniel McLoughlin, who is providing management consultancy services, including the role of interim CEO. I have no doubt he will play a significant role in helping the Government to resolve these problems. It would be helpful if the Minister could give us more detail. A lot of information has been in the public domain. I appreciate there are two independent reviews by the Charities Regulator and the AHB Regulatory Authority. I am not looking for the Minister of State to stray into those areas. Initially, we were told a financial support package in the region of €7 million would be needed, then €10 million. If it is €15 million, it is €15 million. I am not disputing or questioning that. Of paramount importance is the security of the services for the people who need them. Additional information on what that €15 million is for and how that figure was arrived at would be welcome.
The Deputy will appreciate it is a difficult time. Our particular concern is for the more than 1,000 users of the Peter McVerry Trust, along with the more than 600 employees and the more than 600 people on the housing first scheme. The trust received €1.1 million on 4 December from the DRHE. It will receive a further €2.8 million by the end of December. It is then required to provide a restructuring plan by the end of January. Ultimately, this is about ensuring that the services are kept in place for service users of the trust, employees and people across the spectrum. That is the up-to-date position as I can provide it.
I welcome the additional information. Responsibility for all of these affairs rests with the Peter McVerry Trust, the failures of its board and its previous chief executive, Pat Doyle. We will deal with responsibility and accountability when the reports from the two regulators are published. There is also a wider policy context. For years, homeless services have been funded through a deficit funding model in which they are not provided with 100% funding for the services they provide. In fact, an issue at the heart of the Peter McVerry Trust is a significant level of underbidding for services, well below the 90% that often is standard in the sector. In addition, the fact the Government requires competitive tendering, it could be argued, incentivises this process of underbidding. As part of the wider review into the funding of homeless services, will the Government give a commitment that it will examine these issues and whether they played any role in the events that transpired? Will it give a commitment to examine reforming these areas for 100% full cost recovery for homeless service providers to ensure the security of services into the future?
The substantive question is about the trust. We want to ensure it is put on a sustainable footing, particularly for service users, staff and their work in delivering homeless services. The restructuring plan must be provided by the end of January. We note the points the Deputy raised on the broader context and will take them on board.
