Dail Éireann · 2022-05-05
Part of Priority Questions
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61. Deputy David Stanton asked the Minister for Housing, Local Government and Heritage further to Parliamentary Question No. 183 of 3 March 2022, when he expects the local infrastructure housing activation fund, LIHAF, works to begin on the Midleton Water Rock LIHAF project; and if he will make a statement on the matter. [22096/22]
The objective of the local infrastructure housing activation fund, LIHAF, is to provide public off-site infrastructure to relieve critical infrastructure blockages. LIHAF projects often involve complex, large-scale public infrastructure developments which pave the way for associated housing developments.
In respect of the Midleton Water Rock project, which includes roads and waste water infrastructure, Cork County Council has confirmed that the most economically advantageous tenderer for the infrastructure project construction works has been identified following a two-stage tender process. Pre-contract correspondence is ongoing between Cork County Council and the most economically advantageous tenderer and this process is taking longer to finalise than had been anticipated.
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Deputy Stanton is very anxious to break the logjam on the Midleton Water Rock project, which has the potential for 2,500 homes. The local infrastructure housing activation fund would contribute just over €2,000 per unit to trigger it. It seems that it is stuck. The latest problem is that Transport Infrastructure Ireland has said the major road is not up to scratch to allow it to go ahead.
The objective of the local infrastructure housing activation fund, LIHAF, is to provide public off-site infrastructure to relieve critical infrastructure blockages. This enables the accelerated delivery of housing on key development sites in urban areas of high housing demand, adding to supply, a crucial factor in terms of moderating house prices. LIHAF projects often involve complex, large-scale public infrastructure developments which pave the way for associated housing developments. This requires extensive design, planning, public consultation and procurement processes in advance of the projects moving to construction.
In respect of the Midleton Water Rock project, which includes roads and waste water infrastructure, Cork County Council has confirmed that the most economically advantageous tenderer for the infrastructure project construction works has been identified following a two-stage tender process. Pre-contract correspondence is ongoing between Cork County Council and the most economically advantageous tenderer and this process is taking longer to finalise than had been anticipated. I am, however, informed that Cork County Council and the LIHAF landowners have completed advance clearance works, which will enable commencement of the main contract works following the successful conclusion of the pre-contract discussions. I understand that every effort is being made by Cork County Council to ensure all requirements are satisfied so that the tender process can be progressed and the works commence in the coming weeks.
This is significant funding to deliver significant units in Cork. The Minister was in discussions yesterday with Deputy Stanton on this issue to try to move it along. It is a very important activation fund. This country really has to activate planning permissions and get projects on the ground. LIHAF is one key component of providing infrastructure to do so.
The frustration arises because this is very good value from money from a LIHAF point of view. For €2,000 each there would be 2,500 homes. It seems one hand of government is trying to push it along and another is trying to block it. Funding for the proposed upgrade of the N25 was dropped and now TII is saying it is inappropriate to go ahead with the development. We now have a real problem. We need ministerial intervention to break through.
As I referenced, the Minister has engaged with Deputy Stanton and will continue to do so. The arms of the State have to work together to deliver key infrastructural projects such as this. It is not good enough in a housing crisis when we see the level of value for money that a project such as this can deliver to society. It has to progress. I have full confidence that negotiations will continue at pace.