Dáil debates

Wednesday, 1 February 2023

Council Development Levies: Motion [Private Members]

 

10:20 am

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

We will arrange for that.

The Government shares that interest and, therefore, will not oppose the motion. I will share with Deputies an outline of the existing measures in place in addition to those further proposed measures that are in line with the spirit of the motion, namely, that the uplift in funding derived from new developments benefits those affected communities. The Government recognises the need for services, amenities and facilities benefiting communities to be developed and enhanced in connection with new development, including housing development. It is an integrated approach and we all agree on that. This recognition is evidenced through existing and proposed legislative provisions with a view to enabling and empowering local authorities to channel funding from existing development contributions and proposed future sources.

Concerning existing legislative provisions, there are mechanisms in place under existing legislation set out in sections 48 and 49 of the Planning and Development Act 2000, as amended, which I think Deputy Connolly referenced, to permit planning authorities to secure development contributions towards local infrastructure projects. The preparation and adoption of sections 48 and 49 development contribution schemes involve a key decision-making role for elected members, and elected members are involved in determining the priority to be afforded to projects within the functional area of the local authority.

I will outline Government policy and objectives in this area where legislative developments. As well as continuing to support the existing arrangements, the Government recognises the need for additional infrastructure and for "community gain" to be secured in connection with new housing development. This has previously been acknowledged in the programme for Government, the Housing for All plan and is being progressed through the current legislative proposals to develop land value sharing measures. These legislative proposals have been developed in response to the recognition in the programme for Government that there is a need for community gain in planning decisions. Housing for All set out in greater detail the intention to respond to the Kenny report of 1973 and the recommendations made by the National Economic and Social Council, NESC, and others on the need to reform Ireland’s system of land management.

I move to the matter of proposed land value sharing and local authority funding. To ensure that the State secures an appropriate proportion of the uplift in land values that results from public decisions to zone or designate land for development and that the necessary public infrastructure, services and facilities to support development within the local authority area can be provided, proposals are being developed to introduce a land value sharing mechanism that involves the local authority securing a proportion of the uplift between the existing use value of the land at the point of zoning, and the market value of the land with the benefit of zoning.

The general scheme of the land value sharing and urban development zones Bill was approved by Government in December last and will also include provisions to empower local authorities to designate areas with significant potential for development, including housing, as candidate urban development zones and for the Government to designate such areas as urban development zones. These areas will be a focus of State investment in key enabling infrastructure to ensure the potential for development can be realised in a timely manner. Deputy Collins made reference to that. The proposals include a key role for elected members and the local community in the adoption of a framework for the development of the area within the development plan and in the adoption of detailed schemes for the master planning of the areas. State investment in infrastructure in these areas will further support the land value sharing mechanisms and sections 48 and 49 contributions schemes in place for the local authority to secure obligations in connection with development and to spend in connection with the provisions of public infrastructure, services and facilities.

Accordingly, the Government will not oppose the motion as, in a general sense, it is aligned with the spirit of Government policy concerning the channelling of revenues arising from development is already established, and work is also under way to develop this funding principle further. The Government welcomes those funding developments that are currently being progressed. These represent a significant uplift in obligations secured by local authorities that ultimately should benefit communities. I am confident that the finalisation of legislation under way to deliver land value sharing in the coming weeks will deliver on our shared aims and look forward to progressing this important work.

Copies of the speech should be here shortly.

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