Catherine Murphy (Kildare North, Independent)
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I read the document that outlines some of the issues. I do not disagree with some of what was said. We most definitely have a serious problem with supply, which is driving up rents and making us unattractive. This week there was a news item in which some industries said they would have difficulty in attracting people in the absence of appropriate accommodation at a reasonable price. How to deal with this is the issue. I accept that there must be a return for building, but sometimes I wonder. I have examined the matter of development levies over the years. I am based in Kildare, which had quite high development contributions. We did that because it was the only available means of delivering infrastructure that would permit the development to take place.

A 50% or 75% local contribution was required towards national capital investment. However, it seemed quite obvious that the development contribution was almost factored into the cost of the building land rather than the cost of building the houses. The price of building land went down when the development levy went up, and the houses were then priced at what the market could bear. It may well be the case for people who have bought land that it is not good for it to be factored into the process because the land is already purchased. However, in the case of future land purchases the development contributions will have an impact on the cost. I am keen to hear what the witnesses have to say about the price of building land.

Let us consider all of these things in terms of reductions. I believe there will be changes to the development contributions on foot of the establishment of Irish Water. We have had a discussion about that in any case. There will be needs where there are new developments, but they cannot be funded out of the property tax because the property tax is only a replacement for what was the Local Government Fund. In fact, it is pitched at 2013 levels, which is an unsustainable level because, for example, the amount of money that has been allocated for regional and local roads is one third of what it was in 2008. That can only go on for so long before we start ruining our infrastructure. This is one element that I am keen for the witnesses to address.

The other issue relates to the planning system. I had a planning Bill debated in the Dáil and then it came before this committee. I met the officials in the Department of the Environment, Community and Local Government. Some elements of that Bill will be included in the legislation due to come before us soon. The Bill sought to rebalance the legislation from a consumer perspective. I maintain that the construction industry, particularly house-building, is divided into in three parts. There are people who are very good. They go in, build it out and finish it off, they are proud of what they do and we never hear another word from them. The second group have to be cajoled into finishing work in compliance with planning permission. The third group is made up of those who should not be building at all. Essentially, the consumer is a big problem in all of this. I am keen to hear the view of the witnesses on the matter. Let us suppose someone buys a house in a housing estate but the developer does not finish it and goes off to build in other areas. That reflects badly on the industry. It breaks down trust if such people seek further planning permission. This side of the sector must be examined from the industry point of view, because a trail of destruction has been left in some locations. It is not simply about building; it is a question of building in the right locations with the right number and size of units. Furthermore, we need to consider other infrastructure that should go with this building naturally, such as transport and land use. All of these should be planned together. The industry should examine not only the efficiency of getting planning permission but also how problems that have emerged in the sector can be overcome in terms of initiatives that can be included in the planning legislation.