Seán Kenny (Dublin North East, Labour) | Oireachtas source

I welcome the opportunity to speak on this important Bill. The purpose of the Bill is primarily focused on addressing housing supply-related issues with a view to facilitating increased activity in the housing construction sector, especially in the Dublin area where the housing supply shortage is particularly acute. As a Dublin Deputy I am very much aware of that on a daily basis. By targeting empty sites urban regeneration will become more common and instead of the blight of wasteland in our communities, we will instead see positive developments adding to our communities.

The main provisions of the Bill are the revision of the Part V arrangements on social and affordable housing as well as retrospective application of reduced development contribution charges, which is being done following the changes to the economy which made the previous charges unrealistic. I very much welcome the introduction of a vacant site levy to incentivise urban regeneration and the provision of housing in central urban areas.

The Bill gives effect to a number of actions outlined in the Government’s Construction 2020 strategy which require legislative underpinning. The Bill will enable planning authorities to adopt measures to incentivise the use and development of vacant sites in urban areas. The Bill provides that from 1 January 2019, planning authorities will be empowered to apply an annual vacant site levy of 3% of the market value of vacant sites exceeding 0.1 ha, which in the planning authority’s opinion were vacant in the preceding year, in areas identified by the planning authority in its development plan or local area plan for residential development or regeneration development.

Part 2 of the legislation concerns the vacant site levy. Section 5 provides for the definition of a vacant site. In the case of residential land it means a site in an area where there is a need for housing, the site is suitable for provision of housing and is vacant. In the case of regeneration land it means a site that is vacant and has an adverse effect on existing amenities including a diminution in the amenity. A site is any area of land exceeding 0.1 ha but does not include a structure that is a person’s home.

There is also provision for the establishment and maintenance of a vacant sites register from 2017 onwards, which I welcome. It will ensure that vacant sites are known and the existence of a list should provide a baseline for action to be taken in terms of levies, which should in turn incentivise work to be progressed on vacant sites.

This part of the legislation outlines specific criteria to be used by the planning authority, or An Bord Pleanála on appeal, for determining whether or not, first, there was a need for housing in an area, second, a site was suitable for housing, and third, the site being vacant had adverse effects on existing amenities in the area or on the character of the area. That is very important as it provides a socially oriented framework for deciding what is a vacant site and what is not, and this ensures the levy is not all about land parcels and their financial value. In that way we are seeing a turn away from the Celtic tiger model of money and land running roughshod over social cohesion and community need.

With effect from 1 January 2019 and every year thereafter, a planning authority shall, in respect of the preceding year, charge a vacant site levy on the market value of a site on the owner of each site included in its vacant site register. The levy shall be payable, in arrears, on demand or by instalments if agreed by the planning authority. I hope the levy will be collected. I am aware from reports from Dublin City Council that vacant site levies are already outstanding. The names of some well known former developers are on the list of those who owe money. In some cases the outstanding sums of money are as much as €20,000 and €30,000. The levy shall continue to be payable annually until the site is developed or brought into use at which time the site will be removed from the register.

Where An Bord Pleanála determines that a site was not a vacant site, it shall notify the planning authority concerned, which shall remove the relevant entry from the register and cancel the demand made. An owner of a site may also appeal on the grounds that the amount of the levy has been incorrectly calculated. In addition, where An Bord Pleanála determines the amount of the levy has been incorrectly calculated, it shall notify the correct amount to the planning authority concerned, which shall revise their records accordingly.

I refer to the amendments in this legislation that are being made to Part V of the Planning and Development Act 2000 which deals with social and affordable housing. Informed by a recent review of the Part V provisions, the Bill provides that, in future, the focus of Part V will be on the delivery of social housing, with a requirement for up to 10% social housing in developments in excess of nine units. In the operation of these revised arrangements, the priority will be to secure social housing units on site. The making of cash payments in lieu of social housing is to be discontinued and I very much welcome this. In the past, some local authorities, particularly in parts of the Fingal area, accepted a sum of money in place of housing, which has left housing shortages in parts of Baldoyle and Howth. I am glad the policy is to be discontinued. The point of Part V is to deliver social housing. The old approach of developers effectively buying their way out of this requirement was not helpful, especially during the Celtic tiger era.

Under the legislation, a planning authority, in preparing its housing strategy, will be required to consult approved housing bodies in its functional area and to have regard to relevant housing policies of the Government or any Minister. It also halves to 10% the percentage of land zoned for residential use, or for a mixture of residential and other uses, that must be provided for social and affordable housing. Retaining the legal provision regarding affordable housing provides a robust and constitutionally tested legislative mechanism for the future provision of affordable housing.

Previous affordable housing schemes have all been stood down since 2011, and although there is no plan to provide any scheme, I hope they will be returned to in the future. It is understandable that due to the need for social housing provision, the focus of Part V is entirely on providing social housing output. We have to get more houses built. The housing crisis in Dublin, including in my Dublin North-East constituency and elsewhere, is very severe and must be tackled as a priority by the Government and local authorities including Dublin City Council and Fingal County Council. It is intended to issue a statutory ministerial policy directive under section 29 of the Act to planning authorities directing that, until the issue of a further ministerial directive, developers should fulfil their Part V obligation in the form of social housing only.

Part V of the legislation amends section 95 of the Act of 2000 by requiring a planning authority to have regard to the overall strategy for the proper planning and sustainable development of the area of the development plan when ensuring sufficient and suitable land is zoned for residential use, or for a mixture of residential and other uses, and I support this. Planning authorities need to ensure the communities within their remit are well balanced and to factor in the needs of those communities. The transfer of completed units on other land not subject to the planning permission is also provided for. This allows social housing units to be delivered in another location, in the event that the development that is the subject of the planning permission does not meet the social housing or mixed tenure needs of the local authority. Provision is also made for the Part V obligation to be fulfilled by developers through long-term leasing of properties and rental accommodation availability agreements. These latter Part V options reflect amendments that were provided in section 38 of the Planning and Development (Amendment) Act 2010, but had not commenced.

The Labour Party in government is addressing the housing crisis by providing massive resources for constructing new units, which will start to come on stream in the next couple of years. Unfortunately, it takes a year to a year and a half to see the end result. However, the important thing is that the resources are being provided, priority has been set and the local authorities have been given the task of dealing with it and coming up with solutions quickly. I am glad to support the legislation and I commend the Minister, Deputy Alan Kelly, and the Minister of State, Deputy Paudie Coffey, on their hard work in the area. Given the scale of the housing crisis, the legislation must be supported. I commend the Bill to the House.

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