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National Asset Management Agency

Dáil Éireann Debate, Thursday - 25 November 2010

Thursday, 25 November 2010

Questions (3)

Phil Hogan

Question:

3 Deputy Phil Hogan asked the Minister for the Environment; Heritage and Local Government the impact on national planning and development policy that the National Asset Management Agency have had; if there are changes in existing planning and development policy as a result of NAMA; and if he will make a statement on the matter. [44484/10]

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Oral answers (9 contributions)

National planning policy has undergone extensive reform through the recent enactment of the Planning and Development (Amendment) Act 2010. Its provisions will address many of the legacy planning issues which contributed to the property price bubble.

The Act ensures greater oversight, integration and consistency between spatial plans at national, regional and local levels. It requires that an evidence based core strategy must be included in development plans to detail how such plans are consistent with the national spatial strategy, relevant regional planning guidelines and statutory planning guidelines and provide information on the quantum, location and phasing of lands zoned for development over the period of the plan. Local authorities are required to introduce these core strategies into their development plans within one year of the adoption of the updated regional planning guidelines for the area. The Act also introduced a number of other amendments including the provision of additional grounds for extension of the duration of planning permission where there were considerations of a commercial, economic or technical nature beyond the control of the applicant which substantially militated against either the commencement of development or the carrying out of substantial works pursuant to the planning permission. A similar provision was introduced in the Act establishing the National Asset Management Agency.

My Department is in contact with NAMA on a number of issues, including in regard to the issue of unfinished estates. In this regard, NAMA is represented on the high level expert group on unfinished housing developments which was established to develop practical and policy solutions effectively to address unfinished housing developments. The Department is also in contact with NAMA to ensure that wherever its aim to secure a sound return can be aligned with the Department's need to provide accommodation for disadvantaged households, this will be achieved. The operation of NAMA is, of course, a matter for the Minister for Finance.

Arising from the Minister's reply, will he indicate to the House when the national spatial strategy review will be completed and published and if it will require a strategic environmental assessment in line with European law? Has the Department plans to instruct local authorities, perhaps directly through NAMA, on the compilation of master plans in regard to the various sites that are derelict, particularly in the commercial and residential area? Is this being considered to ensure we have proper planning and development arising from the fact there are so many sites in State ownership, with the largest property owner in the world being NAMA?

Will the Deputy repeat the second question?

Is the Minister instructing the local authorities or NAMA on the basis of good planning and development to draw up master plans in regard to the commercial and residential holdings that are in the ownership of the State with a view to ensuring, first, that we get some return on the investment which is now in the ownership of the State and, second, that we have good sustainable planning and development practice in regard to those properties?

On the question of refreshing the national spatial strategy, work on that is still under way. I hope I can give the Deputy a more specific date shortly, and I am happy to write to him to give that information.

The second question referred to an SEA, or strategic environmental assessment. We would have to seek advice on that specifically from the Attorney General to see whether an SEA is required. It is always one of the most difficult questions because we are introducing SEAs in an increasing number of cases.

The Minister knows that from the Planning and Development (Amendment) Act.

I must seek specific advice from the Attorney General on that issue.

Deputy Terence Flanagan has a question today on ghost estates and we have been in touch with the local authorities in this regard. We are establishing an inventory of the ghost estates and operating with that to find what we can do quickly, and we are co-operating with NAMA in as efficient a way as possible. As I said in my contribution, a member of NAMA is on that board to deal with that issue.

The operation of NAMA is a matter for the Minister for Finance but we are dealing with the planning issues in my Department. Particularly in the context of the new Planning and Development (Amendment) Act 2010, we want to ensure we have a core strategy, that the regional planning guidelines are adhered to at all times and that we have an evidence based approach to planning matters. For those reasons, we can be assured planning will be dealt with in a much more comprehensive way in the future.

The Minister might outline to the House how exactly this planning function to which he refers in respect of NAMA properties will work. It is fine to talk of evidence based strategy, core strategy and all of that. What is the Minister doing to ensure we get proper planning and development in regard to the NAMA properties that are now in the hold of the State? How will he ensure we get a return on those investments, particularly in housing? A huge number of people are on social housing lists and we could marry demand and supply quite easily in a properly planned and sustainable way.

The Deputy knows section 42A was inserted in the planning Act by the NAMA Act 2009 to provide for planning extensions as they relate to planning permissions applicable to properties that have been taken into the ownership of NAMA. Section 42A provides that an application to extend a planning permission can be made by NAMA before or up to two years after planning permission has expired, where such planning permission has expired during the years 2009, 2010 or 2011.

Under section 42, including as amended by the Planning and Development (Amendment) Act, other applicants will not be entitled to seek an extension after planning permission has expired. The differentiation in this is justified because of the circumstance that NAMA might acquire land or property after the permission has expired and so would not be in a position to make an application for extension within the normal time limit. More important, the provision is designed to protect and limit the overall financial exposure to the taxpayer and the State by optimising the potential value of developments or sites taken in by NAMA. This is the point that has been made by the Deputy. The concept of reinstituting an expired or dead permission is not catered for within the existing general planning code for other applicants and would be an unacceptable departure from planning legislation that deals with current planning permissions.

As the Deputy knows, we have tried to integrate good planning practice into NAMA. We have to ensure the properties that have been taken into NAMA realise their value. We have done that in the best possible way by ensuring best planning practice in the process.

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