PAC: Modular Homes Cost Unacceptable

Brian Stanley, a Sinn Féin TD and Chair of the Oireachtas Public Accounts Committee, has publicly expressed his disapproval of the twofold increase in the cost of rapid-build modular homes for Ukrainian citizens. This information came to light in a recent report from the Comptroller and Auditor General (C&AG), the state’s financial watchdog. The involved expenses escalated from an initial estimate of €200,000 per unit in June 2022 to a final estimation of approximately €442,000 on average per unit.

Mr Stanley, in a dialogue with Morning Ireland, stressed the necessity for cost transparency regarding these compact prefab units. As an example, he pointed to modular homes in Rathdowney, Co Laois, each measuring a modest 45 square meters, half the size of a truly small house.

Mr Stanley particularly spotlighted an instance wherein the cost for a Rathdowney unit, originally estimated at €145,000, soared to €345,000 upon completion. This was unsatisfactory, according to him, especially considering the substantial price inflation occurred within a year, contrasting the national children’s hospital project, wherein costs rose over a much lengthier seven to eight years span.

Mr Stanley stressed that current contractual frameworks observed by the State, specifically those involving contractors, proved ineffective and unsatisfactory, especially from the taxpayer’s perspective. He called upon the Office of Government Procurement to offer an explanation, highlighting its responsibility in contract review.

Moreover, the C&AG’s report indicated that the State may face over €600,000 in storage fees for produced modular units as of June 2024. About €300,000 of those charges have already been covered.

The reports also indicated that establishing a trustful and enduring purpose for these homes was quintessential to ensure that the quick-build housing programme offered good value for money. Nevertheless, the Ministry of Integration, despite identifying various potential functionalities for these compounds past their necessity for temporary Ukrainian beneficiaries, has yet to specify a set long-term application.

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