Dáil Éireann Debate, Tuesday - 16 July 2013
778. Deputy Jack Wall asked the Minister for the Environment, Community and Local Government the up-to-date position on the report on bonds, insurances and other methods of collateral used by the construction industry in relation to estates that have not been taken in charge by the local authority; if legislation will be necessary to ensure that local authorities will be able to draw down such funding; and if he will make a statement on the matter. [34707/13]
View answerConditions attached to planning permissions for residential development must require the giving of sufficient security prior to commencement of development. The form of the bond, the amount and the terms attached are matters for the planning authority concerned and the arrangement entered into must enable the planning authority, without cost to itself, to complete the necessary services (including roads, footpaths, water mains, sewers, lighting and open space) to a satisfactory standard in the event of default by the developer.
My Department recently provided updated guidance to local authorities in relation to bonds. This included, inter alia, guidance on:
- purpose of securities;
- types of securities;
- requirements for securities;
- default events;
- securities in phased developments;
- assessment of security mechanisms;
- computation of bonds; and,
- release of bonds.
This guidance is available on my Department’s website at www.environ.ie.
Information on bonds held by local authorities may be obtained from the authority concerned.
