Dáil Éireann Debate, Tuesday - 7 November 2017
1295. Deputy Catherine Martin asked the Minister for Housing, Planning and Local Government if his attention has been drawn to the fact that the €20 million threshold for mandatory cost-benefit analysis on local authority housing projects represents a significant imposition and incurs time delays on the delivery of much needed housing; his plans to address this matter; and if he will make a statement on the matter. [46871/17]
Amharc ar fhreagraThe €20 million threshold for the completion of a cost benefit analysis arises from the Public Spending Code and is designed to ensure that the State gets the best possible value for the resources at its disposal. It applies to all publicly funded capital projects, not just to housing. I do not accept that this represents a significant imposition and incurs time delays on housing delivery. Although we are spending high volumes of capital funding on social housing delivery - with a provision of €1.14 billion for 2018 for example - there is a very limited number of individual projects that exceed €20 million. Therefore, the need for formal cost benefit analyses to be completed has rarely arisen for social housing projects in recent years.
It is standard practice for all social housing projects, irrespective of cost levels, to be carefully considered in relation to costs and other issues. For example, all such projects undergo an initial 'capital appraisal' and that includes many of the considerations that are part of a formal cost benefit analysis. Furthermore, throughout the construction period, social housing projects are subject to good quality cost oversight.
Accordingly, while the need for a formal cost benefit analysis has arisen infrequently in respect of social housing construction projects, the objectives of good cost management and value for money are always pursued and where a cost benefit analysis is required, it is not a significant additional requirement for the local authority.
