Mr. Conor O'Connell:

I thank the Chairman and committee members. The Irish Home Builders Association is a constituent association of the Construction Industry Federation, and represents hundreds of home builders of all sizes across Ireland. The association supports Irish home builders to deliver quality affordable home to home buyers. A priority for the IHBA is to deliver much-needed homes for those struggling to access the market and find suitable homes. The past number of years have been particularly difficult for those aspiring home buyers who have struggled with the lack of supply and affordability. House builders increased output by nearly 50% last year in comparison with the previous year and nearly 30,000 new homes were constructed in 2022. To achieve our national ambition of constructing more homes for more people so that we can offer people the security of their own home, we need more zoned land, infrastructure and planning permissions and, of course, a viable, affordable product that can be funded.

In relation to planning and development legislation, housing supply does not happen in isolation, and many of the supply determinants are outside the control or resourcing of the house builder. The house building and construction sector provides the necessary infrastructure for Ireland and relies on the State to resource and adequately administer the planning system, and in some cases the legal system, to provide the planning permissions that will ultimately supply more homes. There are many different reports into how many houses are needed, from 33,500 in the Housing for All report up to 62,000 in a much publicised Housing Commission report. Whatever the case, the number of houses we need to supply is much greater than we are currently constructing. We estimate that there are over 70,000 units waiting for a decision from An Bord Pleanála and in the courts. That is nearly two years' supply of houses at current output levels.

A judicial review of homes already granted permission by the planning process can add to the cost of a home by €10,000 to €20,000 per unit. The old expression that time is money has never been more appropriate in the current economic environment as increases in the cost of materials, the rising interest rates and other factors mean the extraordinarily long delays currently in the planning and legal system result in more costs being added to a new home. These are adding unnecessary delays to our younger generations securing their new homes. Commencements declined by 13% last year and we expect that planning permissions will see a dramatic decline over the next 12 months.

It is sometimes said to us in response to the delays in the planning system that there are adequate permissions in place. In urban areas of high demand, most of these are for apartments. Apartments have always been a challenge to deliver due to the high delivery costs and it is doubtful that many will commence in 2023. Government initiatives such as Project Tosaigh and Croí Cónaithe may yield results in terms of apartment commencements later on in 2023. Demand for traditional housing units remains strong as over 70% of Irish households are owner-occupied, and the preference of people is to own their own home. It is not an exaggeration to say that many house builders trying to deliver housing units are concerned they may run out of permissions in areas of high demand later in 2023.

The situation in relation to the resourcing and the planning system and the timelines for decision-making are at a critical juncture. We simply need to build more in this country. We need to build more communities consisting of more houses. We need to build more public transport infrastructure, roads, schools, hospitals, greenways, wastewater treatment plants and electricity infrastructure. The failure to build over the last 12 years is contributing significantly to the many problems we are now facing as a society and economy. It could be argued that these are the problems of success, but they will quickly lead us into failures unless we can build more for our growing population. That is why we welcome so many aspects of the planning and development Bill 2022, including timelines for decision-making and the introduction of appropriate sanctions, including financial penalties, for failure to make the decision in time. A new planning commission, the increased lifespan for local authority development plans, the strengthening of the legal status of national guidelines, the ability to refer certain matters from the courts back to the planning commission and many other aspects are all positive changes.

Ultimately, these will require resourcing and action plans for resourcing. This must commence with the immediate resourcing of An Bord Pleanála to deal with the many applications awaiting decision. Regardless of the question of being for or against a project, we must be able to make decisions more quickly. We have seen objections based on individuals claiming that their houses may be devalued. We have seen objections to housing from organisations or individuals who live several hundred kilometres away from the a site and from politicians objecting to housing who at the same time are calling for more housing. This simply cannot continue if we are serious about an inclusive and harmonious society where the provision of housing is facilitated by the State by means of appropriate legislation and procedures.

The draft Bill is not just about planning. It is also about delivery and the development of this country. It is the process through which we decide, through our zoning process and policies, where housing and other infrastructure should be provided. Prior to an application being made, there should be an assumption of permission on zoned land and that development will take place. The legislation should be about facilitating and allowing for the construction of essential infrastructure for Ireland and we urge the committee to facilitate the passage of this legislation so that houses and other essential infrastructure can be built in a timely manner. Let us build more homes for more people by ensuring that we can provide the necessary zoning, infrastructure and planning permission. We need a unified response to ensure that the increase in housing supply continues. The proposed Bill could be a key component in the context of delivery.