Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I propose to take Questions Nos. 80, 104 and 109 together.

Section 48(2)(b) of the Planning and Development Act 2000 provides that a development contribution scheme applied by a planning authority in respect of its functional area may make provision for payment of different contributions in respect of different classes or descriptions of development. The level of contribution and the types of development to which development contributions should apply, including any exemptions from charging in specific circumstances if that is deemed appropriate, are determined, therefore, at local authority level, in accordance with the powers vested in elected members in respect of the adoption of local authority development contribution schemes.

As the Deputy noted, on 25 April 2023 the Government approved additional measures under the Housing for All plan to incentivise the activation of increased housing supply and assist the achievement of the housing delivery targets set in Housing for All, while also addressing cost and viability issues faced by the construction sector. These measures included the introduction of temporary time-limited arrangements for the waiving of local authority section 48 development contributions and the refunding of Uisce Éireann water and wastewater connection charges. It should be noted that the Uisce Éireann water and wastewater connection charges referenced in the new Government support package will still have to be paid upfront by developers in the normal manner, with the moneys being subsequently refunded by Uisce Éireann on notification of the commencement of works. In effect, the Uisce Éireann piece is a rebate rather than a waiver.

The new schemes apply for one year to all permitted residential developments that commence on site between 25 April 2023, the date on which we approved the decision, and 24 April 2024. These developments must be completed no later than 31 December 2025. This end date is to facilitate large schemes to be speedily brought forward and progressed, while also incentivising their completion as quickly as possible within a reasonable timeframe and delivering additional urgent housing supply.

We are currently working on the detailed arrangements relating to the operation and administration of the waiver and refund schemes. These arrangements have already been communicated to local authorities and Uisce Éireann. I am cognisant that the development contribution waiver scheme does not impact on the ability of local authorities to fund the ongoing provision of necessary infrastructure to support development by local authorities to prevent delays to development works. It will be necessary, therefore, to put efficient administrative arrangements in place to ensure local authorities are promptly compensated by the Department for development contributions. In effect, we are refunding the moneys. The development contributions that are waived will be paid fully back to the local authorities. The local authorities will invoice the Department on a monthly in-arrears basis in respect of development contributions payable that are applicable under the waiver further to receipt of the commencement notices from the developers.

Furthermore, a number of financial safeguards are in place to prevent profiteering by the sector, thus ensuring the measures will benefit purchasers by boosting supply. Developers are already subject to compliance with specific regional price caps in the context of the first home scheme and a cap generally applicable under the help-to-buy scheme. In addition, the Department applies unit cost recommendations on proposed social and affordable housing developments to ensure value for money. These requirements will remain in place as a price control mechanism.

No local authority will be out of pocket. They will be paid monthly in arrears. It is an activation measure. We have already received a number of schemes, small and large, that were on the cusp of viability and are now able to start. The average saving is approximately €12,700 but, for apartments, it is up to €20,000. It is for schemes where we all want additional supply, or say we do. This is an opportunity to get that additional supply through a short-term time-bound measure. The local authorities will be recompensed fully for the waiver of development levies.

See this speech in context