Dick Roche (Wicklow, Fianna Fail)

This issue touches on the point raised by Deputy McCormack's supplementary question. Prior to the enactment of the Planning and Development Act 2000, planning authorities could require payment of a development contribution as a condition of a planning permission on a discretionary basis. From 2004, in order to introduce transparency and openness to the system, each local authority was required to adopt a development contribution scheme stating the basis for determining the contributions to be paid in respect of public infrastructure and facilities in its area and indicating the contribution to be paid for different types of infrastructure.

Development contribution schemes are adopted by the democratically elected members of the individual planning authorities. They are reserved functions and it is a matter for councillors in each locality to decide democratically what the scale will be.

I consider the new system that was endorsed by the Oireachtas and which helps to ensure contributions are levied appropriately across all sectors of development to be fair and transparent. The question is asked as to why there are significant differences between localities. As development contributions constitute one of the fundamental sources of financing for infrastructure and underpin the facilities required in particular areas, it is inevitable there will be variation in development contribution rates.

However, in circular letter PD 4/2003 my Department advised planning authorities that they should be mindful of the policies adopted by other authorities in their immediate area in respect of setting the level of development charges. Planning authorities were also advised in the aforementioned circular that while it is expected that developers should make an appropriate contribution towards the costs of public infrastructure, care should be taken to avoid development contributions that are excessively high. Deputy McCormack's supplementary question touched on this point. My Department also has the opportunity to comment on draft schemes before they are adopted and has so done.

Circular letter PD 4/2003 also stated it would be advisable to review the scheme at two to three year intervals, where the scheme is adopted for a longer period. The Department has established an interdepartmental committee to consider issues raised by different interests regarding development contributions schemes. There have been some complaints in this regard.

As previously noted, since the introduction of the planning code paying a development contribution has been a basic cost for developers, which is payable in advance of the start of construction. There is no evidence that development contributions have had the effect of increasing the final price charged by developers, as is sometimes suggested. While the tabular statement is too lengthy to be read in the House, the Deputy will find the figures staggering. Last year, the amount collected by planning authorities in development contributions came to €519.4 million.

I will be interested in the months ahead to ascertain how these funds will be spent. The circular letter issued to local authorities has asked them to ensure the local councillors, as they enter the estimates process, are aware of the amount of money being collected. Based on returns made for the annual planning statistics, in 2004 the figure in development levies came to €337 million, which rose to €519.4 million last year. Consequently, any suggestion that local authorities are short of funding for the types of services all members wish to see them provide deserves close scrutiny.

Additional information not given on the floor of the House.

The table below provides a breakdown of these figures by planning authority.

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