Dáil Éireann Debate, Wednesday - 4 November 2015
233. Deputy Thomas P. Broughan asked the Minister for the Environment, Community and Local Government the measures his Department is taking to address the cost of €185,000 to build one social housing unit; if he expects this cost to reduce in 2016; and if so, to what price; and if he will make a statement on the matter. [38424/15]
Amharc ar fhreagraSocial housing is procured in accordance with the relevant EU and domestic legislative and policy requirements as determined by the National Public Procurement Policy Guidance and Capital Works Management Framework published by the Minister for Public Expenditure and Reform. Value for money is a critical and inherent objective of the procurement process.
In general terms the cost of delivering a social housing unit is dependent on the type, size and geographic location of the unit concerned and on the contractual arrangements leading to its procurement, which may involve a variety of short-term or long-term leasing arrangements, purchase or commissioning options exercised by a local authority or an approved housing body.
The prevailing economic conditions at present suggest that housing costs, including social housing costs, are more likely to rise rather than fall during 2016. This is due to the fact that housing supply currently falls significantly short of housing demand and construction input costs are subject to inflationary pressures, as the construction industry transitions from under-activity over an extended period to significant growth in all sectors (i.e. residential, commercial and civil construction).
The Government's Construction 2020 Strategy sets out a range of measures designed to address issues in the property and construction sectors and ensure that any bottlenecks that might impede the sector are addressed. A copy of the Strategy is available at the following weblink: http://www.taoiseach.gov.ie/eng/Publications/Publications_2014/Construction_Strategy_14th_May_2014.html.
In addition, the Social Housing Strategy 2020, which is available on my Department's website at the following link;
http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,39622,en.pdf, sets out a range of measures to which the Government has committed in order to deliver good quality housing supports to those who need them in a sustainable and cost effective manner.
