The seeming collapse of the regeneration programme PPP between Dublin City Council and McNamara Construction has brought the housing crisis in the state to a new low.

Even though Bernard McNamara is due to submit new proposals, there is not much hope that the differences can be resolved and that the five inner city communities of St Michael’s, Sean McDermott St, O’Devaney Gardens, Infirmary Rd and Dominic St will get the housing and social amenities that they so desperately need.

McNamara is trying to get out of the deal because his chance of guaranteed large profits has gone since the collapse of the housing market. Out of the total 1,800 homes to be built, the 800 units that he would have retained for his profit are practically unsellable now.

But hold off on the tears for poor Bernard. His construction company had a turn over of €370 million last year. This makes his complaint that having to comply with new regulations, i.e., having to provide decent accommodation made the projects financially unviable, particularly disgusting.

Dublin City Council, following government policy, has become completely reliant on profit hungry private builders to fulfil its housing obligations. McNamara may try to use this dependency to renegotiate a better deal on the regeneration projects to guarantee he makes his big profits.

Whatever comes out of this particular fiasco, the approach of using Public Private Partnerships (PPPs) must end. PPPs cost far more than necessary as the private “partners” are only involved to make huge profits which add to the overall costs. Even worse in this situation communities who have been waiting for decades for decent housing and social amenities have had their hopes shattered because McNamara’s profits were put before their needs!

A question mark now hangs over all of the 16 housing PPPs in the state. This is because the private developers are now faced with trying to make a profit from a housing market that has collapsed and they are also finding it increasingly difficult to borrow money at competitive rates during the world credit crunch. Some of the most deprived communities in the EU will suffer if these projects are abandoned.

Dublin City Council has ordered a risk assessment on four other PPPs where 3,000 homes are due to be built. In April they closed the list for affordable homes because they haven’t been able to meet the demand.

The real blame for this crisis lies with the Fianna Fail government. It is their failure to build state funded social housing that is at the root cause of this crisis. 

Dublin City Council will look for a new private developer but it might take years before one will be willing to take on this contract particularly in the current economic climate. Already DCC is saying that it is likely that regeneration will be delayed. That is not acceptable and the DCC cannot be trusted.

All PPP projects should be abandoned. There should be no more reliance on private developers, or millions of euro of taxpayers money handed over needlessly just to fill the pockets of the likes of Bernard McNamara. Emergency public funds should be provided and all of these regeneration programmes should be built by the government as social and affordable housing programmes.

The working class communities of St Michael’s, Sean McDermott St, O’Devaney Gardens, Infirmary Rd and Dominic St deserve nothing less than properly planned communities, fully resourced with the services that they and their families should have had years ago.