Carol Nolan Demands Greater Oversight of Housing Body Spending
Carol Nolan questioned whether the Department conducts monitoring of how money is spent by approved housing bodies and called for greater oversight. She cited delays to basic insulation works at Chesterfield and highlighted that Respond has received a quarter of a billion euro in funding since 2016.
How funding is administered
The Department told the Deputy that it does not administer funds directly to approved housing bodies; funding is primarily provided to local authorities which in turn advance funding to approved housing bodies. The Department noted that the cost rental equity loan is provided directly to the housing agency, which administers the scheme and advances funds to approved housing bodies as projects progress.
Audit and compliance safeguards
The Department said funding for local authorities that supports approved housing bodies complies with Department of Public Expenditure and Reform requirements, the Public Spending Code and the Capital Works Management Framework. The Department's arrangements are subject to oversight by the Comptroller and Auditor General, and local authority activity involving approved housing bodies is audited by the Local Government Audit Service as part of annual financial audits.
Regulatory changes and implementation
A strengthened regulatory regime for approved housing bodies was established with the approved housing bodies regulatory authority formally set up on 1 February 2021. The Department referred to a 2018 Comptroller and Auditor General investigation that made three recommendations and said those recommendations were fully implemented by March 2021.
Local concerns and sector delivery
Carol Nolan raised the case of residents in Chesterfield waiting a considerable time for proper insulation and argued that annual monitoring of spend would reassure taxpayers. The Department responded that the approved housing body sector has constructed over 15,000 units since 2016, with 60% delivered through building or part five arrangements, and said eight schemes currently approved by the Department comply with the Public Spending Code and related circulars.
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Minister, I wish to raise the issue in regard to reviews or indeed monitoring of the funding given to housing bodies, and I just want to ask you, in relation to approved housing bodies, does the Department conduct any reviews or any monitoring of how the money is spent by these bodies? Thank you, Lasko Heerlach. Approved housing bodies are key in delivery partner for the provision of social and affordable housing. My department does not administer funds directly to approved housing bodies, rather it is primarily provided to local authorities who in turn advance the funding to the approved housing bodies. Social housing provision through approved housing bodies can only be provided with the approval and oversight of the local authority. Specifically, in respect of the cost rental equity loan, my department provides the funding directly to the housing agency, who administer the scheme, and the agency then advances the funds to the approved housing bodies as projects are progressed. As with all funding provided by my department, funding for local authorities that supports approved housing bodies is fully compliant with the Department of Public Expenditure and Reform requirements relating to the management of and accountability for grants from Exchequer Funds. Furthermore, detailed grant approval, payment and performance monitoring arrangements are operated by my department on funding approvals involving approved housing bodies, consistent with the Public Spending Code and Capital Works Management Framework. My own department's arrangements in this regard are subject to the oversight of the Comptroller and Auditor General, while additionally, the activity of our local authorities involving approved housing bodies are subject to audit by the Local Government Audit Service as part of their annual financial audit of local authority financial statements. A new strengthened regulatory regime for approved housing bodies has also been put in place. The approved housing bodies regulatory authority was formally established in the 1st of February 2021. A key role of the approved housing body regulatory authority is to encourage and facilitate better governance, administration and management, including corporate governance and financial management of the approved housing body sector. I am aware that the responsibility falls primarily with the local authorities, but I just would ask you, do you not think that it might be necessary or indeed proper for the Department to conduct some oversight in terms of the spend? I am aware of a housing situation where residents of Chesterfield in Borough County, Offaly, they are going through, they are obviously under the housing body respond, but they are waiting a considerable length of time for their houses to be properly insulated. It is a bit rich coming from government who has talked about energy efficiency and bringing homes to an energy rating of B2 in the Programme for Government. And surely if there is no oversight by the Department, it speaks volumes here. And I do feel that there needs to be. It is a significant amount of money by the taxpayer. And indeed in the case of Respond since 2016, there has been a quarter of a billion euro received in funding by that body. So I would just ask you, do you not think it is appropriate for the Department to have more oversight in regard to spend? I do think it is appropriate and the Department has adequate oversight. In the first instance, I would point to you when the investigation took place by the Comptroller and Auditor General, which was published in 2018, three recommendations were made in respect of our Department and the approved housing bodies sector, 10.1 to 10.3. We sent a response back that all now are fully implemented in March 2021, that all recommendations are compliant and been fully implemented. And aside from that also, as I pointed out, we are establishing the approved housing bodies regulatory authority, which will provide a layer of extra governance and safeguards to public finances. But in the first instance, I want to clearly point out that all schemes, all eight schemes that are currently approved by the Department are in line with, in the first instance, the Public Spending Code, and in the second instance, all circulars that are issued through deeper. So there are significant, robust safeguards in place to ensure public funds are spent adequately and value for money is achieved. Thank you very much. Thank you. Thank you. Thank you. I acknowledge the fact you mentioned in 2018 that there were three recommendations made. But I'm just wondering, you mentioned the regulatory authority. But what measures will be there in terms of oversight? I think the taxpayer is entitled to know precisely what measures and what monitoring. And surely it would make sense to monitor on a yearly basis. Because we have a situation where a housing body is in receipt of a quarter of a billion euro since 2016. And while it is building some new homes, it is not looking after the basic maintenance of homes. And as I say to you, Chesterfield Close-in-Boer is a prime example of that. There's 26 houses and apartments all seeking proper installation. And these are basic, basic needs. And what I'm concerned about is why are the basic maintenance needs not addressed by a housing body that is or has been in receipt of a quarter of a billion euro since 2016. I think they're the questions that the department needs to be asking. And I know I have brought this up with Minister O'Brien in the past. And it's certainly an issue that I'll continue to ask the questions on. Thank you, Lasky and Coral. I'm not aware of that specific instance. But I can obviously confirm that the approved housing body sector has constructed in the last, since 2016, over 15,000 units. And of those 15,000 units, 60% was either through building or part five. So that's a significant aspect. And in terms of the new regulatory regime that's going to be established, they will be setting up internal audit procedures, monitoring financial risk, and ensuring the proper books of account are held. But currently, you have significant oversight through the public sector spending code, through the Department of Public Expenditure Circulars, and also the local government audit service, all watching in on behalf of the public to ensure that these funds are spent appropriately. And if you have a particular concern in relation to a particular approved housing bodies, the mechanisms are there for you to raise that with them. And I would encourage you to do so, because the oversight is there. The teat are sharp and ready to act in any of those areas. Because half a billion last year was put into approved bodies sector, and that is delivering houses on the ground for all our citizens. And that is, if I mark it. And that is, if I mark it.
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