Dáil Éireann Debate, Thursday - 29 April 2004
28 Ms O’Sullivan asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to efforts by the local authority in County Donegal to adopt controversial development contributions that could add thousands of euro to school building costs; the action he intends to take to remove schools from being subject to these levies; and if he will make a statement on the matter. [9790/04]
View answer70 Mr. Howlin asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the warning from the Construction Industry Federation that new homes across the country will rise in price by thousands of euro due to the development levy; his views on the projections made by the CIF; his plans to assist those on lower incomes to cope with the higher house prices arising from the levy; and if he will make a statement on the matter. [12197/04]
View answer
I propose to take Questions Nos. 28 and 70 together.
Development contributions are attached as conditions of planning permission by local authorities in accordance with schemes adopted democratically by them. While the development contribution system was reformed in the Planning and Development Act 2000, planning authorities have been levying contributions since the enactment of the 1963 Planning Act.
In a circular letter issued on 27 June 2003, planning authorities were advised that while it is expected that the planning authority should ensure that developers make an appropriate contribution towards the costs of public infrastructure and facilities, care should be taken to avoid development contributions that are excessively high. Authorities were also advised that a scheme can allow for a reduced contribution or no contribution in certain circumstances, for example, for particular types of community infrastructure, shops and so forth, in areas in need of regeneration, in brown field areas or for charitable developments. However, it is ultimately a matter for the elected members of each planning authority to determine the level of contribution for their own functional areas and the classes of development to which contributions will apply, having regard to the actual cost of providing infrastructure in that area.
It is not anticipated that the contributions levied will unduly affect the price of houses. 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.
