Victor Boyhan (Independent) | Oireachtas source

I thank the delegates for coming and wish Mr. Coleman well in his role as chief executive of the Land Development Agency. The Minister circulated a briefing note on his appointment yesterday, which reminded me that Mr. Coleman was involved in NAMA, banking and accountancy - three areas that do not generally instill much public confidence or trust. One of the big challenges facing the organisation is that it must gain public trust and public confidence. Mr. Coleman has a huge responsibility on his shoulders, as do the chairman and the whole organisation. We also have a responsibility, as legislators, in deciding how to frame, adjust, amend, or tweak the legislation before us.

I note a number of concerning issues. First, we may need to further scrutinise the freedom of information arrangements for this legislation because we need openness and transparency. We must learn from some of the terrible things that happened with NAMA, although they were not Mr. Coleman's responsibility. The references to NAMA, banking and finance jumped off the page at me. The biggest, most important job is building trust.

The LDA has two interrelated responsibilities, as the delegates know. One is to drive the delivery of new homes, utilise State lands and assemble large-scale strategic land banks involving public and private lands. It is not restricted to housing; it can also be commercial. The LDA has a financial remit with shares set up to pay for it.

I have a number of questions about the relationship between the LDA and local authorities. Mr. Coleman stressed this issue and talked about bringing added value, which is important. We cannot and should not have duplication. The local authority is the planning authority and the housing authority. It also has many other functions. We have seen the consistent erosion of the powers and functions of elected members of local democracy and government. That is a common theme running through a range of issues and services, from Traveller accommodation and local government finance to local property tax and the planning regulator. More central powers have been granted to An Bord Pleanála, while local elected members have less involvement in engaging, even in strategic development housing, for instance. Under this regime we have experienced an erosion of local democracy. That is a fact and I challenge anyone to dispute it. While I am concerned about this, I welcome the principle behind the establishment of the Land Development Agency and what it will achieve. It is, effectively, the State's real estate manager.

I am not going to get into specifics, but I see enormous potential in the Dublin docklands. We have also discussed the docklands in Cork and Galway. I am familiar with a number of them and their potential. We have to realise land is a valuable State asset which has to be utilised for housing, to gain economic benefits for the State, for job creation and in future planning. I want to flag this because it is important.

Transparency and public confidence are also important aspects of this matter. Will the delegates confirm that the LDA has the capacity to secure funding from the European Investment Bank? I assume that is a given, but I ask the delegates to talk about that issue and it being off-balance sheet.

I foresee a potential of conflict in acquiring lands from local authorities that currently have a section 138 disposal mechanism in place which empowers the elected members, not the executive, to dispose of any property on their books for longer than 12 months by lease, sale or freehold. That will present problems and I understand it has already done so.

We have talked about the Shanganagh Castle site a number of times. It has been stated it will consist of all social and affordable housing, which I welcome because it is a fantastic site. I ask the delegates to confirm the transfer arrangements. As I presume they will require some lean on the assets of these properties for guarantees and in getting funding, I ask them to tease out the matter for me. Are the LDA, the State and the Department advocating for compulsory purchase order, CPO, powers for the LDA? A number of State agencies have CPO powers, as did NAMA, of which Mr. Coleman will be aware. How that worked and the experiences of it is another story. That will present challenges which we will have to overcome to get these lands. I ask the delegates to touch on this issue.

In his presentation Mr. Coleman mentioned the challenges of the formal legal transfer, which will potentially be his biggest issue. It will also be a challenge for us in the context of the legislation and due process. He talked about partnership and synergy. I like the tone of it because some local authorities will think of the LDA as another big agency established by the State to come and take their lands. I can see why they would have that fear, but it is not necessarily genuine and their fears need to be allayed.

I will touch on one or two more issues. The delegates are going to talk to us about the Shanganagh Castle site. I ask them to also share with us where they are with the Central Mental Hospital site in Dundrum. It is a substantial site with potential capacity for 1,500 units.

Head 9 may be the most challenging part of the legislation. I do not think the LDA will have problems in identifying the landowners, as there are substantial wasted lands all over the place. I have a copy of the vacant site levy implementation progress report that was filed with the Department of Housing, Planning and Local Government for each of the 31 local authorities. It makes for very interesting reading. Substantial lands that are vacant, abandoned, or derelict may not fall within the remit or ownership of local authorities. That is a challenge for everyone, including State agencies. I suggest the LDA and the Department take a fresh look at this issue and seek an update from each of the 31 local authorities on these derelict, abandoned and vacant land assets. There is enough development potential in these lands for the next 50 years if they get their hands on them.

I refer to acquiring lands in public and private ownership. How will the LDA acquire lands? If someone says the LDA or the State wants 100 acres of land in south County Dublin, the price of the land will go up. People are going to know about it. Price sensitivity is an issue, as is confidentiality. There is a need for a balance between it and public knowledge. How do the delegates envisage all of it working out? It is perhaps the biggest challenge of all.

I wish Mr. Coleman well. It is an exciting project which I support in principle. However, I am concerned that the local authorities might believe there is duplication, or that their own powers are being eroded further.

I am asking the simple question again: is the Department proposing or recommending compulsory purchase powers in the legislation and what is the view of officials of that policy? Is compulsory purchase simply something to have up the Government's sleeve as a potential - perhaps not weapon - tool to be brought into play if it does not receive co-operation in the disposal of these land assets?