Dick Roche (Wicklow, Fianna Fail)

In 2003, Goodbody Economic Consultants were engaged by my Department to carry out a study that considered factors affecting the supply of land to the housing market, including the possible hoarding of building land. There have been many discussions on this topic. The study considered previous analyses of the housing and land markets and sought possible evidence of hoarding based on case studies of three areas, two urban and one rural. The consultants' report, which is available in the Oireachtas Library, concluded there was no evidence, something which may surprise many people, that hoarding of land was a widespread problem or that there were excessive levels of land banking.

Considerable investment has been made in servicing of land and the inventory of zoned and serviced land taken in June 2005 indicates the availability of some 14,800 hectares nationwide, with an estimated yield of 460,000 housing units. The Government wishes to ensure that zoned land is used as promptly as feasible for residential purposes. Therefore legislation is being developed to give powers to planning authorities to act on a selective basis to accelerate the development of appropriate zoned land for housing.

The Government has approved the drafting, at my suggestion, of a designated land (housing development) Bill to provide for a "use it or lose it" scheme. The general scheme of the Bill provides powers for planning authorities to enter into a binding agreement with, or to impose requirements on, the owners of designated land in order to bring such land into housing development; an amended compensation mechanism whereby designated land, if not developed in agreement or accordance with requirements imposed by the relevant planning authority could be compulsorily acquired at below market value; and as a possible alternative to compulsory acquisition, provision for the imposition by planning authorities of an annual development incentive levy on designated land.

The general scheme also provides for mandatory registration of, and the imposition of a levy on, land purchase options.

Landownership alone is not at issue: people with options could be a stymieing factor. I hope the Bill, which will be comprehensive legislation, will get early passage through both Houses. Obviously, it will not be passed by this Dáil but hopefully it will be passed by the next one.

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