THE GOVERNMENT has pledged to provide the cash to start building two housing projects in Limerick before the end of the year to signal its commitment to the city’s regeneration project.
It also revealed yesterday the total cost of the project to the State has fallen by at least €400 million because of the recession and further savings will be made by refurbishing rather than rebuilding some existing houses.
“The €1.7 billion cost of the project has fallen . . . The cost of construction has dropped by 25 per cent over the last two years. This chips €400 million off that figure. Some houses will now be refurbished on the estates and this is cheaper too,” said Minister of State for Housing Michael Finneran.
He said he had given the go-ahead for two specific housing projects that would deliver more than 100 units of accommodation ahead of a draft plan due to be submitted by the Limerick Regeneration agency later this month.
The first project on Lord Edward Street will deliver 70 units of housing for elderly people. A second project in Moyross would deliver 48 social housing units, said Mr Finneran.
Two further housing projects in Southill and St Mary’s Park may also begin this year, he added.
He said he was taking the initiative to address growing public disillusionment with the flagship project, which has suffered from a cash crisis.
Mr Finneran said one of the main problems facing the project was a lack of private-sector money available in co-financing. It had been anticipated that €1.6 billion would be made available from private developers, along with the €1.7 billion in State funding.
He said he would support proposals to offer tax incentives designed to attract private money.
Last month, former minister for defence Willie O’Dea signalled that costs of €1.7 billion could not be afforded by Government due to the recession. He promoted the idea of offering tax breaks as incentives to local developers.
Meanwhile, Mr Finneran will announce €100 million in funding for grants to help improve elderly people’s homes and the homes of people with disabilities.
He said the allocation represented a 31 per cent increase on last year and would provide grants worth up to €30,000 to individual homeowners.
“These schemes are vitally important in assisting older people and people with disabilities to continue living in their own homes,” he said.