Oireachtas Joint and Select Committees

Tuesday, 24 May 2022

Joint Oireachtas Committee on Housing, Planning and Local Government

Construction Costs in Housing: Discussion

Mr. James Benson:

I will take some of those questions and ask my colleague to take some others before passing over to the other bodies. I thank the Senator for her questions.

Everyone will agree that there is something wrong if we have a high level of planning permissions but it is not translating into commencements. I note the Senator’s scepticism about viability, but one recommendation we should consider has to do with the inclusion of an economic viability assessment within planning applications. I would not necessarily argue that such an assessment should be the ultimate reason for granting or refusing a project permission, but it is a waste of everyone’s time, resources and capacity if people go through the planning process for projects that will never happen because of viability issues. Many of our European counterparts examine outline planning at the initial stages and take into account policy and local authority requirements, which gives a greater sense of what a project will cost and whether it is viable. If economic viability was assessed at an early stage in planning applications, it need not be the ultimate reason for granting or refusing, but it would help with the resources of, and existing constraints on, local authorities and An Bord Pleanála, which are all starved of time and resources.

Regarding viability comparisons, my colleague from Cork has undertaken a number of reports on apartment viability in Cork, so I might let him take that question.

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