Oireachtas Joint and Select Committees

Wednesday, 2 October 2019

Joint Oireachtas Committee on Housing, Planning and Local Government

General Scheme of the Land Development Agency Bill 2019: Department of Housing, Planning and Local Government and Land Development Agency

Mr. John Coleman:

I will try to go to the core of some of the points raised by the Deputy.

One concerns optimal usage and what this is, which depends on where one is coming from. We are looking at land that is being used for non-housing or non-development purposes, that we might say could be more optimally used. The LDA is proposing to present options to the owner of the land: the Government or the State, to allow it all make that decision, where it may not have the knowledge, work done or the due diligence that would enable it to make balanced decisions. That is what we mean by optimal usage. The ultimate judge of that will be the Government. For instance, some of the sites that we have access to now, the Government has felt could be more optimally used. These will now be used for housing-focused activities.

The development model at Shanganagh has been a one-off and a kind of Trojan horse in order to piggyback other developments onto it. It is genuinely not the case that we are currently trying to speak with other local authorities about similar models. Ultimately, we just want to get housing delivered on these sites and to help get that done where we can. This has not been some sort of strategic mechanism. Ultimately, we have had to convince the councillors, local and not central government, that what we are doing and proposing to do in Shanganagh is worthy. It is a genuine effort to assist in getting activity happening on sites

How do we ensure that we have a product that is affordable? The Deputy has cited the Ó Cualann model. We certainly respect what Ó Cualann has done and achieved with the focus that this brought to bear on what can be done there. Ultimately, where Ó Cualann delivers on sites, it oversees the main contractor to try and deliver efficiently and affordably. We, on the social and affordable aspect of things, with particular emphasis on the affordable, will have similar oversight, where in the case of Shanganagh being used as an example, we will directly procure a contractor to deliver in as cost-effective a manner while maintaining the quality of the product. We should have some similarities in terms of the production methodology there. That experience, allied to our general market knowledge - when we are seeking if enter a joint venture, JV, with certain parties to deliver on state sites - should enable us to look through us to what the costs of delivery of the affordable requirements on those sites is.

It is important to note that it is not just necessarily to allow a JV partner to come in and profit from the private sector element of the land. They will obviously pay an amount or there will be a value attached to whatever the deal is with the JV partner. It is not just about delivering on state lands with JV partners, we are also looking at situations to combine State land with private-sector land as well. That is what might give rise to a JV to bring in other lands that might otherwise not become available, and that the State currently have a hold over. JVs can be different things. I hope that has given some sort of insight to our approach.

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