Dáil Éireann debate -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Development Levies.

Pádraic McCormack

Question:

403 Mr. McCormack asked the Minister for the Environment Heritage and Local Government the details of the directive which has been given to local authorities concerning the development contribution charges; if there is a fixed amount each local authority has to raise; and the way in which that amount is determined. [30241/03]

Róisín Shortall

Question:

422 Ms Shortall asked the Minister for the Environment Heritage and Local Government the way in which he will ensure that development levies charged to developers will not be passed on by increased house prices or by other means to purchasers of new houses; the plans he has to amend legislation in this regard; and if he will make a statement on the matter. [29840/03]

Arthur Morgan

Question:

431 Mr. Morgan asked the Minister for the Environment Heritage and Local Government if development levies will apply universally to one off houses in the countryside, in cases in which the local authority do not supply either water or sewerage services; the length of time they can be justified if they do apply in such cases; and if he will make a statement on the matter. [30021/03]

Arthur Morgan

Question:

432 Mr. Morgan asked the Minister for the Environment Heritage and Local Government if he discussed the increase in development levies with city and county managers on any occasion in 2003; if so, the content of such discussions; and if he will make a statement on the matter. [30022/03]

Minister for the Environment, Heritage and Local Government (Mr. Cullen):

I propose to take Questions Nos. 403, 422, 431 and 432 together.

Development contributions have been levied on developments of significant scale since 1964 to ensure that developers who benefit from the provision of infrastructure contribute to the cost of providing that infrastructure. The Planning and Development Act 2000 revised the development contribution system in order to introduce transparency into the way in which development contributions were levied and applied. There are no proposals to introduce any further amendments to this system.

I do not anticipate that the contributions levied will unduly affect the price of houses and the level of inflation. The major driver of house price increases in recent years has been the demand for housing, fuelled by rapid economic growth and demographic changes. The Government has responded to this unprecedented demand by focusing on measures to boost supply as the most appropriate way to bring moderation to the rate of house price increases. The key component of this strategy is ensuring a supply of serviced land for housing which the development contribution system helps fund.

While the Minister for the Environment, Heritage and Local Government may comment on the draft development contribution scheme during the consultation period, it is ultimately for the elected members of the planning authorities to determine the level of contribution for their functional areas and the classes of development to which the contributions will apply, having regard to the actual cost of providing infrastructure in that area. Circular Letter PD 4/2003 of 27 June 2003, which issued to each planning authority, advised that the basis for determining the contribution levels in the scheme should be justified and supported.

In addition, at a meeting in my Department on 13 November with the chairperson of the City and County Managers Association and the chairpersons of the association's various sub-committees, I reiterated to the managers present that contributions proposed in development contribution schemes should be set at a reasonable and realistic level.