asked the Minister for Local Government the arrangements in contemplation by his Department to prevent the exploitation of public funds arising from the acquisition of land which is enhanced in value by the resolution of the Town Planning Authority (for local authority purposes) and which is within a development area designated under the Local Government (Planning and Development) Act, 1963; and if he will make a statement on the subject.
Written Answers. - Acquisition of Land for Town Planning.
53.
It is not clear on what point the Deputy wishes to have a statement made. It is implied that exorbitant land acquisition costs are falling on public funds as a result of decisions by planning authorities. The value of land might be affected one way or the other in consequence of the making of a development plan under the Local Government (Planning and Development) Act, 1963, in which the land is zoned for a particular use. It is to be noted, however, that there are certain changes under the Act in the rules governing the assessment of compensation for land acquired compulsorily by local authorities. For example, any change in the value of land attributable to the land, or land in the vicinity, being reserved for a particular purpose in a development plan, or being included in a special amenity area order will not be taken into account in the assessment of compensation. Neither will account be taken of development proposals by a local authority affecting the value of the land.
At this stage, however, no development plan has been made under the Act and it would appear that the upward trend in land values, particularly in the vicinity of large built-up areas, is more the result of the operation of market forces in the face of increasing development demands, than of decisions by planning authorities. The phenomenon of rising land costs in conditions of expanding economic activity is in accordance with the common experience in other free-market countries, and a satisfactory and effective solution, whether by price or other controls has yet to be devised.
There are, however, a number of measures in hands which should have a beneficial effect. All planning authorities are required in making plans under the Planning and Development Act to make adequate zoning provision for the accommodation of housing and other development and to make such provision effective through the development of water and sewerage and other necessary services. Regional planning studies which are in hands or proposed for all areas will extend to the question of the location and accommodation of projected economic and social development and the provision of the necessary ancillary facilities, including housing facilities. Major drainage proposals in prospect in many areas will add greatly to the supply of land available for development. I might point out that local authorities are empowered by the planning and Development Act to require a contribution towards the cost of local authority works and services which have facilitated developers in the development of lands.
Local authorities themselves can greatly ease the difficulties experienced by private persons in obtaining suitable housing sites at reasonable cost by utilising their wide powers to acquire land to meet private development in addition to local authority development. They may purchase land by agreement or compulsorily and sell or lease developed or undeveloped housing sites. All housing authorities are encouraged to make fuller use of their powers in this respect as an effective counteraction to speculation in building land.