Mr. Terry Sheridan:

I thank Deputy Murphy for her detailed comments. I will respond to her questions on planning, the vacant site levy and development contributions and my colleagues, Mr. Terry Dunne and Mr. John O'Connor, will respond on Part V related issues.

On whether the introduction of the vacant site levy will be an executive or a reserve function of the local authority members, the idea is that the levy will be an integral part of the adoption of the development plan by a local authority. It is an optional exercise for local authorities. The local authorities can adopt this provision if they so desire or can decide not to pursue it initially and wait to see how some local authorities implement it. It will be a reserve function to be adopted as part of the adoption of a development plan for the local authority area in question.

Deputy Murphy raised her concerns about the subjective aspects of the application of the levy, in particular to the application of the derelict sites levy. I admit that the derelict sites levy has been difficult to administer and relatively easy to circumvent. All the property owner has to do is put a hoarding around the development to keep the public from gaining access to it.

It is intended to be applied to sites and buildings that are dangerous in structure in order that a hoarding is erected around them. The vacant site levy will be a different animal and it will apply where there is hoarding of vacant and under-utilised sites with a view to getting them back into beneficial use.

On the development contributions, we can possibly consider the idea of a sunset clause. We wrote to local authorities in 2013 asking them to reduce the levies they apply with a view to reducing the burden on the construction sector and they virtually all responded positively and reduced the levies they applied. The four Dublin local authorities applied an average reduction of 26%.

As the Deputy will be well aware, we have had some engagement on the issue of Irish Water and water services infrastructure. We asked and advised local authorities at the end of 2013 to ensure development contributions in respect of planning permissions granted before the establishment of Irish Water covered the cost of the water services infrastructure and planning permissions granted after the establishment of Irish Water on 1 January this year should not be applied in respect of water services infrastructure. That is where we are and it is a matter then between the developer and Irish Water in terms of implementing its connections policy how the water services aspect of the development contribution type arrangement should operate.