OPW in more hot water over cost of refugee schemes

Extra.ie​

18-05-2025

The Office of Public Works (OPW) is at the centre of another spending controversy after it emerged that modular homes in a housing development for Ukrainian refugees cost almost twice as much as units on another, similar site.
Figures provided by outgoing Integration Minister Norma Foley revealed a €200,000-plus difference in the cost of building units in the two schemes.
An opposition leader this weekend said the OPW has 'serious questions to answer' as he called for the Dáil spending watchdog to investigate the matter. Outgoing Integration Minister Norma Foley. Pic: Niall Carson/PA Wire
Ms Foley confirmed 62 'new modular accommodation units' housing 248 people were built at the Columb Barracks site in Mullingar, operated by the Land Development Agency (LDA), at an average cost of 'approximately €220,000'.
In response to parliamentary queries from Aontú leader Peadar Tòibín, Ms Foley said the cost of the modular 42sq m (560sq ft) units is 'inclusive of supply, delivery, fitting out and the site development and water connection costs'.
However, the minister confirmed far higher costs to build similar modular units under the Government's Beneficiaries of Temporary Protection (BOTP) Rapid Build Programme, which she said is being led by the OPW 'in conjunction with my department'.
Ms Foley confirmed 572 units were built in sites across the country where 2,312 residents 'moved into their new homes'.
And she said works 'are currently ongoing at the final development at a HSEowned site in Heywood, Clonmel, Co Tipperary, which has been identified as viable by OPW to accommodate 82 units'. Haywood Place, Clonmel, Co. Tipperary. Pic: Tom Honan
Ms Foley said the cost of the programme is estimated to be €253.7m, but she added that, as 'the project is still ongoing, it is not possible to fully specify a final overall programme figure'.
Asked the average cost per modular unit under the scheme, the department told Extra.ie: 'The average cost of the units is €436,000. This includes the cost of the units, inclusive of supply, delivery and provision of loose electrical and household items, site development and utility connection costs, etc relating to the overall development. The units are 44sq m (474sq ft).'
Commenting on the huge price difference between similar modular refugee developments, Aontú leader Peadar Tòibín said 'the OPW has serious questions to answer'.
The Meath West TD told Extra.ie: 'There appears to be neither reason nor rationale behind the scenario where similar housing comes in at twice the price, especially where land costs are not relevant. Once again, the taxpayer is left footing the bill for serial ineptitude, and this must be examined by the Public Accounts Committee.'
The OPW has been mired in controversy in recent months over wasteful spending on several taxpayer-funded projects. These include the infamous €336,000 bike shed, the €1.4m security 'hut' at an entrance to Government Buildings, and €490,000 spent on a 70-metre 'wall of shame' outside the headquarters of the Workplace Relations Commission. Peadar Tóibín. Pic: Fran Veale
Mr Tòibín said of the huge refugee accommodation costs: 'These units are temporary and will not last more than 50 or 60 years, yet more has been spent on them by the Government than it would cost to purchase an actual real concrete house which could remain in public ownership for centuries.'
Last September, a report published by the Comptroller and Auditor General found the average cost of a modular home for Ukrainian refugees had increased to €442,000 – almost the same amount cited by the department this week for units under this Rapid Build Programme.
This figure is also more than double the initial €200,000 per unit estimated by the Department of Integration to build 500 modular homes in June 2022.
The proposals were brought forward in response to the Russian invasion of Ukraine and the arrival of tens of thousands of Ukrainian refugees here.
An initial budget of €100m was approved, with the expected delivery of modular units by the end of February 2023. But it rose to €140m by November 2022, with the OPW citing contractor costs and VAT for the increase. Costs rose to €155m in January 2023, increasing the cost per unit to an average of €310,000.
Asked about the huge price disparity for the different refugee schemes, the OPW said: 'This is a matter for the Department of Children, Equality, Disability, Integration and Youth (DCEDIY).'
The DCEDIY said in a statement: 'Ten Rapid Build Sites have been delivered. The final site, in Heywood, Clonmel, will be completed by end June 2025. This will bring the final output of the programme to 654 units, with a capacity to accommodate 2,640 BOTPs [Beneficiaries of Temporary Protection fleeing the war in Ukraine].'
Explaining the price difference, a DCEDIY spokesman said: 'Many of the sites were sub-optimal, requiring significant remedial work [which added to the cost] .'
They said of Columb Barracks: 'The cost of each unit was approximately €220,000 (42sq m/452sq ft), inclusive of supply, delivery, fitting out and the site development and water connection costs.'