Mr. Terry Sheridan:

It is proposed that the levy could only be imposed by local authorities under certain conditions, where the site owners fail to bring forward proposals, without good reason, for the development and reuse of such sites in line with the objectives of the relevant local area or development plan.

The levy can be activated where there is a failure to lodge a planning application, or commence development authorised by a planning permission, for the relevant vacant or under-utilised site within specified periods and where there is no obvious reason that such development has not occurred. In essence, the levy will entail a carrot and stick approach, incentivising developers to develop vacant under-utilised sites while also applying lower development contribution levies on the development of such sites, and only penalising those who opt not to bring forward proposals to develop the sites in question.

Further to action 14 of the Construction 2020 strategy, it is also proposed that developers be allowed to avail of reduced development contribution levies in specific circumstances. Under the current legislation, developers are obliged to pay the levies which are in place at the time a planning permission is granted. Where a development contribution scheme is subsequently revised by a local authority to apply lower development levies, a developer with an existing planning permission is unable legislatively to avail of the revised lower levies.

Accordingly, it is now proposed that the current provisions be amended so that developers with planning permissions granted under previous development contribution regimes can avail of the reduced development contribution charges introduced under new development contribution schemes. This flexibility measure is intended to assist in making developments more economically viable and thereby bring them on-stream earlier than might otherwise be the case.

The final measure in the general scheme listed as action 20 in the Construction 2020 strategy proposes that applicants for planning permission in respect of housing developments of scale, ten houses or more, shall be required to indicate their proposed development schedule on their application form. Where the development is subsequently not progressed in line with the indicated schedule, without reasonable justification, planning authorities will be enabled to reduce the duration of the permission. In essence, this proposal is aimed at incentivising developers to activate permissions earlier rather than later, a form of “use it or lose it” provision, so that developments can come on stream earlier and not be unduly delayed.

I should also add that this general scheme is being progressed in association with a separate general scheme of a planning and development (No. 2) Bill, dealing with the establishment of an office of the planning regulator as recommended by the Mahon tribunal; the commencement of the preparation of a new national planning framework as a successor to the National Spatial Strategy 2002; the introduction of e-planning relating to online planning applications and appeals and certain other streamlining measures relating to the planning system; and other miscellaneous provisions.

The general scheme of the (No. 2) Bill is expected to be published this week and we are willing to avail of pre-legislative scrutiny for the second Bill should the committee so desire. In terms of timeframes, the Minister is anxious that the (No. 1) Bill is enacted as quickly as possible with the (No. 2) Bill to be enacted by the end of 2015. Splitting the provisions into two Bills is intended to facilitate the earlier enactment of those provisions which are required most urgently to help address the current housing supply shortage. We thank the Vice Chairman for affording us the opportunity to outline the provisions in the forthcoming planning and development (No. 1) Bill to him and the committee today.