Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Adjournment Debate. - Planning Levies.

Mr. Morgan

Given that this is the first time I have addressed the Chair, other than by way of points of order, I congratulate the Ceann Comhairle on his election to that office and wish him a happy term. I also congratulate the Minister and wish him well in his term of office.

In raising the scandal of planning levies I will specifically address the issue in my constituency of Louth. When a planning application is granted a levy is applied. In 1999 this levy was £150; it increased to £600 over the next three years. On 1 March 2002 it increased to €1,900 overnight in respect of a road improvement levy and €1,270 in respect of a community development levy. More than €3,000 must be paid before a spade even reaches the site. This is a fundamental rip-off on which I ask the Minister to reign in the county manager involved.

In 1997 the first-time buyer's grant was fixed at £3,000. In contrast to these levies, it has not increased by one cent. Louth County Council is claiming almost all of the first-time buyer's grant. A fundamental issue regarding the funding of local government is at stake. When rates were abolished in 1977 local authorities were to be funded by way of block grants. That is still supposed to be the case. Unfortunately, Louth County Council has seen fit to raise funds by this other method. Who are the victims of this new practice? They are mostly, but not entirely, young people. Young people are no burden on the State; they are the complete opposite as they are providing their own homes. What is the county manager doing about this? What is he doing to help them? They are being ripped off. It is not fair, equitable or just.

These levies are euphemistically called road improvement and community development levies, but we know what they really are. A community centre was recently built on the Cooley Peninsula. When they received their grant of permission, a community development planning levy of €3,000 was included. That speaks for itself. This funding of local government by sleight of hand is unacceptable. It is within the Minister's power to bring it to an end. A section of the Planning and Development Act, 2000, provides for the transfer of power to apply these levies from the county manager to the elected members. I ask the Minister to apply it. House and site prices are already expensive enough. It is within the Minister's power to end this scandal. I ask him to do so forthwith.

Mr. Cullen

I thank the Deputy for raising this important issue. In August 2000 the Planning and Development Act, 2000, was passed following detailed consideration of its provisions by the Oireachtas. This Act, which revises, extends and consolidates the legislative basis for the planning system, introduced many significant changes and initiatives designed to introduce a sustainable development ethos into the system, increase its efficiency and ensure a strategic approach to land use planning in Ireland.

The development contribution system has been significantly revised in the 2000 Act. The range of infrastructure which can be funded by this mechanism has also been increased. The changes are designed to increase the transparency of the system, which had been a complaint of developers.

Section 48 of the Act requires planning authorities to draft a development contributions scheme setting out the contributions that will be charged to help to pay for public infrastructure and facilities provided by the local authority to benefit development in its area. Following a public consultation procedure, the scheme and a report on any submission made to the authority on the draft scheme is submitted by the manager to the elected members for consideration and adoption. Once a scheme is adopted, it is applied, as before, by attaching a condition to a planning permission. This new system will ensure greatly increased transparency for developers who will be able to look at the scheme and know, not only how much they will have to pay in respect of their development, but also why. It should also be a useful resource for local authorities to fund infrastructure for their local communities.

The Act also provides for two other types of contribution to be levied on planning applications. Special development contribution conditions may also be imposed where specific exceptional costs not covered by a scheme are incurred by a local authority which benefit a particular development.

Section 49 of the Act provides for the drawing up of supplementary development contribution schemes to facilitate particular public infrastructure or projects which are provided by a local authority or private developer on behalf of a local authority by way of PPP and which will benefit the development on which the levy is imposed. The scheme under this section is adopted in the same way as a general contribution scheme, that is, by the elected members.

These sections were commenced on 11 March this year. It is now a matter for individual planning authorities to draw up and make their development contributions scheme. Under the Act, they have been given two years to do so. In order to ensure there was no gap in the funding of this critical local infrastructure, the Act provides that, in the meantime, local authorities can continue to levy development contributions in accordance with the provisions of the 1963 Planning Act.

Perhaps the Deputy would like to take up the powers now entrusted to him since 11 March. It would be helpful to bring them to the attention of his local authority because they will meet some of the problems the Deputy raised with regard to the influence councillors could and should have. That will be welcomed by all councillors.

The Dáil adjourned at 11.35 p.m. until 10.30 a.m. on Wednesday, 26 June 2002.