Dáil debates

Thursday, 18 May 2023

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Housing Schemes

10:30 am

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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75. To ask the Minister for Housing, Planning, and Local Government if he has plans to ensure that residents who are selected from the social housing list to join a new-build co-operative home ownership scheme are not charged development levies due to the dwellings being classed as "private"; and if he will make a statement on the matter. [23915/23]

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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I want to ask the Minister for Housing, Local Government and Heritage if he has plans to ensure that residents who are selected from the social housing list to join a new-build co-operative home ownership scheme are not charged development levies due to the dwellings being classed as "private", and if he will make a statement on the matter.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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I thank Deputy Bacik for the question. Section 48(2)(b) of the Planning and Development Act 2000, as amended, provides that 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 at local authority level.

Local authorities' development contribution schemes may include a provision to waive or reduce contributions for homes provided by a co-operative housing body. For example, Dublin City Council's scheme notes that such units will not be required to pay development contributions. In certain other local authorities, waivers or reduced development contributions are also applied in respect of such housing.

That said, the Government is mindful of the need to further incentivise increased housing supply while addressing cost and viability issues faced by those delivering new homes. With that in mind, on 25 April the Government approved the introduction of a temporary time-limited arrangement for the waiving of local authority section 48 development contributions, and the refunding of Uisce Eireann-Irish Water waste and wastewater connection charges. All residential developments, including developments by a co-operative housing body, will be exempt from development contributions and water connection fees for a 12-month period until 24 April 2024. The homes must be completed by 31 December 2025. My Department is working on the detailed arrangements for the operation and administration of this measure.

10:40 am

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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I thank the Minister of State for his response. This issue was raised with me by one of our most experienced councillors in Dún Laoghaire-Rathdown, Denis O’Callaghan. He tells me a co-operative housing scheme of 42 units is under construction in the area by Co-operative Housing Ireland, of which 34 will be rental and eight built as co-operative home owned. Eight families opted into the scheme who were selected from the social housing lists on the council. The local authority insists these eight dwellings are subject to development levies because they are classed as private dwellings, even though they are on the same site as the other units being built. The developer liable for the levies will pay the council and then charge the eight families.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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Which council is this?

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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Dún Laoghaire-Rathdown County Council. The levies work out at approximately €13,500 per house. They are placing a huge burden on the eight families. The councillor has asked the planners to waive the levy but they will not. I am concerned about whether policies adopted by Government are being passed consistently onto councils. We see, unfortunately, serious inconsistencies in the application of the tenant in situscheme across councils. It appears from the Minister of State’s answer that not all councils may be applying the same waiver approach in this sort of scenario.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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The tenant in situscheme is hugely successful. Going back to the Deputy's case, Dún Laoghaire-Rathdown County Council provides an exemption for social housing units provided by a co-operative body. The Deputy’s councillor colleague is correct. The measure relating to development contributions and refunds is an activation measure and is about getting sites under construction now. The Deputy is referring, I assume, to a development that is completed. The individual development contribution scheme is the sole prerogative of the local authority, more particularly the elected members. It is a reserved function of the elected members. We can follow up the Deputy’s query with Dún Laoghaire-Rathdown but ultimately the decision on the development contribution scheme is a reserved function of the local authority and its members.

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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The answer the Minister of State has given exemplifies the difficulties with the Government's approach to planning. There is a serious element of passing the buck between central government and local authorities. We have seen it in the tenant in situscheme, in Government proposals around the first refusal scheme and in the lack of planning and co-ordination between central government and local authorities following the lifting of the temporary no-fault eviction ban.

We in the Opposition have put forward clear proposals to the Minister for Housing, Local Government and Heritage and the Department to ensure there would be a package of co-ordinated measures that local authorities could adopt consistently across the country to support families and households facing eviction or on the homelessness list.

Last week we heard from Focus Ireland about the enormous difficulties for children in homelessness; we heard from Alone and Threshold about the enormous issues facing older people. There are 175 people aged over 65 among the 12,000 in emergency accommodation. We know from individual cases we are all dealing with, like Micheline Walsh, how difficult it is to access alternative accommodation. I appeal to the Minister of State to ensure a more co-ordinated approach across local authorities.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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Many local authorities, including Limerick City and County Council, Sligo County Council, the already-mentioned Dublin City Council, Galway City Council and South Dublin County Council, effectively provide exemptions from development contributions for all forms of social and affordable housing. The Deputy’s colleague is obviously a member of Dún Laoghaire-Rathdown County Council. It is the councillors who make this decision. The Government brought out an activation measure to get housing projects under way. We want to see a co-ordinated approach. The Deputy will appreciate there is a separation of powers between local authority members and the Government. It is something councillors look for. They have that in terms of development contribution levies. I suggest the Deputy talk to her councillor colleague about looking at it in his local authority.