Catherine Murphy (Kildare North, Independent) | Oireachtas source

I move amendment No. 44:

In page 12, between lines 29 and 30, to insert the following:“Development Contributions in respect of Irish Water

14. The Minister shall, within three months of the coming into operation of this Act, make and publish a report proposing new arrangements needed, if applicable, to ensure revenues formerly derived from development contributions payable in respect of commercial and industrial developments under sections 48 and 49 of the Planning and Development Act 2000 (as amended) may continue to be utilised towards investment in water services and water infrastructure.”.

There has been much talk of establishing Irish Water with the ultimate aim of saving the State money. However, circular 21/2013 from the Department of the Environment, Community and Local Government states that from 1 January 2014 "planning authorities, when granting permission, should no longer include a portion in respect of water services infrastructure in any development contribution applied". It also states that the Department will issue guidance on the appropriate transfer of development contributions by planning authorities to Irish Water.

In the main, development contributions relate to roads, water and wastewater, while a smaller community component may also apply. These development contributions constitute a sizeable portion of the income that feeds the capital fund for developing water infrastructure. In 2014 there have been no development contributions, be they industrial, commercial, residential or otherwise. It is difficult to know whether this situation will be remedied soon or at all and we are not talking about small amounts of money.

Due to delays of around a year in auditing at local government level, the most recent figures I have date from 31 December 2012 but at that point there was a cash balance of €303 million and €394 million was owed, of which some €202 million was owed in the long term. There are doubts about whether the €202 million will be collected. We are talking about very large sums of money that are subject to the general Government deficit because local authorities are regarded as an extension in terms of national finances. Money that was collected in respect of development contributions for water and wastewater prior to 2013 will now be transferred to Irish Water. The circular states that balances will transfer to Irish Water, including development contributions that are being analysed as part of the ongoing exercise. Can the Minister of State say whether Irish Water will also be subject to the general Government deficit or will it be permitted to spend the money that is transferred? Local authorities can only spend what is accrued in any one year to ensure the general Government deficit is not put out of kilter. This is an important issue.

Development contributions relating to water and wastewater can vary between local authorities because they have the freedom to create their own development contribution schemes. Development contributions in Kildare were quite high and I supported this approach because it included a community fund for developing important community infrastructure. Neighbouring counties, on the other hand, may have far lower development contributions.

On the subject of industrial development, I will refer to the Leixlip wastewater treatment plant. Much of the money used to upgrade that tertiary treatment plant to become a first-world facility came from local wet industries in the tech sector.

Can development contributions still be applied? For example, what if another industry came along to Waterford or Westmeath? Or are they prevented from doing this by virtue of the fact that the circular is in place? Are special contributions restricted? Large amounts of money are at issue. It is astonishing that people are gone after for relatively small amounts whereas millions have been lost in development contributions which cannot be applied retrospectively.

It is not in any way clear how any scheme to be put in place will apply in respect of dovetailing with the local authority. If development contributions are to be applied by Irish Water will there be a relationship between Irish Water and the local authorities? Will they become collection agents? Will the Minister of State give some indication of the thinking in this area? We are discussing the need to invest vast sums of money in water and wastewater. Yet here is a fund that had been in place for a long time but has been basically suspended because Irish Water is being set up. I find that astonishing and I am keen to hear the comments of the Minister of State on some of these questions.

See this speech in context