European ruling could hit North's social housing plans, committee told

Plans to build 1,300 affordable homes in the North this year could be disrupted by a European court ruling, Assembly members were told today.

The legal directive affects construction projects on which the proposed developer is also the owner of the land, the Social Development committee heard.

A committee official explained that the new Design and Build ruling means a landowner cannot be given the development contract without going through a competitive procurement process.

Of the 1,750 social homes the DSD planned to build with a £157m (€175m) budget this year, the site owner was also the prospective developer in 1,300 cases.

Departmental officials, who stress the overall 1,750 target will not be affected, are now negotiating with those developers to see if they are willing to sell the land on the understanding they will then have to tender for the construction contract.

Where they are unwilling to do so, the DSD will have to find alternative sites for the homes.

Committee member Fra McCann (Sinn Féin, West Belfast) called for an urgent departmental briefing on the matter.

“This could have very serious consequences,” he said.

While the directive may necessitate a revision of departmental plans, expanding the procurement process could result in lower contract costs.

A DSD spokesman said the department had a series of other potential projects earmarked to ensure the 1,750 target was met.

“There is no threat to the 1,750 new build social housing target this year,” he said.

“£157m (€175m) has been set aside this year to meet that target and Minister Ritchie is totally committed to it.

“The Design and Build Directive is European law for all member states, not just Northern Ireland.

“Many of the developers affected by it are actively co-operating with it.

“For those who wish not to do so, we are actively seeking alternative land in those areas of housing need.

“Also, the Social Housing Development Programme deliberately overplans above the target figure as in any year legal and planning issues arise.

“The revised programme will therefore see existing developers build and allow new developers to build, in turn creating hundreds if not thousands of jobs in the construction sector.

“To reiterate, the Design and Build Directive does not threaten the 1750 target.”