Mr. Terry Sheridan:

I will deal with the levy aspect with regard to vacant sites. The first question is whether the vacant site levy is another name for the derelict sites provisions. It is slightly different. As the member implied, the derelict sites levy has been difficult for local authorities to enforce and to implement. The intention is that this vacant site levy will be easier to enforce. The derelict sites levy can be circumvented as I have outlined, by simply putting a hoarding around the site which makes it no longer dangerous. The vacant site levy will be applied irrespective of whether there is a hoarding in place. It will be applied if the site is not developed. There is no obligation to develop the site under the derelict site levy provisions.

The Senator asked for clarification as to the meaning of local authorities being enabled, should they wish to do so, to apply the levy. That is meant to indicate that the levy will be optional for local authorities to apply; it will be up to them to decide whether they wish to apply it in their local areas, depending on their local circumstances.

As I have outlined, it will be a matter for the elected members to decide when adopting the development plan whether they wish to go down the route of applying the levy in designated areas in the function area of their local authority.

On the collection issue and whether there should be a penalty for non-collection of the levy by local authorities, there are fairly stringent provisions in the general scheme, in the heads of the Bill, which outline that non-payment of the levy will expose the property owner to interest payments from day one, in the event of late payments. In addition, the levy will remain a charge on the property until such time as the levy is discharged to the local authority. Therefore, there is an incentive for the property owner to pay on time. That will help to ensure speedier collection by local authorities.

The Senator also referred to whether the levy would stay with the site if sold. That is the intention. If a site is not developed and if planning permission is not obtained within a specified period or development does not commence within a specified period, the levy would apply. It will pass from one site owner to another if the site is sold.

The Senator asked about reduced development contributions and how they would be applied in specific circumstances. What is intended is that the specific circumstances relate to where a developer has a permission granted under a previous development contribution scheme operated by a local authority. Where the scheme changes in the meantime the developer will be able to avail of the reduced development contribution that has been introduced under the new development contribution scheme agreed by the local authority. These are the specific circumstances. There is no legislative provision or mechanism for developers to avail of the reduced development contributions at present. This is intended to address that gap in the legislation.