John Dardis (Progressive Democrats)

I move:

That Seanad Eireann, noting public concern about:

—the role of management companies in new housing estates, and charges being imposed on residents;

—conflicts of interest which can arise when senior planning officials take up employment with development companies operating in the same local area;

—the imposition of large development levies, and special development levies by local authorities;

asks the Minister for the Environment, Heritage and Local Government to outline:

—the appropriate measures that might be taken to ensure local authorities take housing estates in charge where they should do so;

—the appropriate restrictions that can be applied to local authjorities to the prevent the attaching of planning conditions requiring management companies to be established in housing estates;

—the legal and constitutional restriction that might be applied to public and/or civil servants vis-À-vis new employment they may take up which holds a potential for conflict of interest; and

—how the imposition of development levies, and special development levies by local authorities might be monitored and controlled; and how full transparency and accountability can be ensured regarding the spending of these moneys.

I move the motion because of the ongoing public concern in these matters. It is the considered view of the Progressive Democrats that there is a level of anxiety among the public, particularly but not exclusively among home buyers, about certain practices in the planning and development process. The level of anxiety is such that my party feels it would be useful to debate these issues in the Seanad and to hear the views of Members and of the Minister.

A recent review of planning and development legislation refers to Ireland's "almost uniquely open system" in respect of planning applications, and it is true that there is much to be positive about regarding our procedures. They have improved significantly in recent years with the most recent pieces of legislation. However, three specific areas of concern have arisen and these are referred to in the motion. First, there is public concern about the role of management companies in new housing estates, and charges being imposed on residents. It is accepted that in certain circumstances management companies are both appropriate and desired by the resident and the local authority. For example, there may be a relatively closed or private housing development where the residents require and are happy to have and pay for a management company to maintain infrastructure and look after the fabric of the estate. However, the Minister is no doubt aware that problems do arise elsewhere.

Traditionally, when a development was completed in accordance with the planning permission granted, the local authority took that estate "in charge", meaning that the council took responsibility for public infrastructure such as roads, footpaths, sewers, water mains and public lighting in the housing estate. Developers should, of course, be required through the planning permission process to complete each estate to a standard acceptable to the authority for taking in charge. That in itself has created difficulties in the past. The local authority obtained a bond from the developer as a prompt to get estates completed as quickly and efficiently as possible.

The public concern has arisen from a real or perceived move away by local authorities from that traditional process. For example, that includes the obligation on some home buyers to become a member of a management company; the associated obligation on home buyers to pay large sums to these companies to carry out work which traditionally was the responsibility of the developer, or eventually, the local authority, when the estate was taken in charge; and the uncertainty among these home buyers about what level of control or influence they have, if any, over the management company to which they are paying fees.

Other problems include the linking by some local authorities of planning permission with the establishment of a management company in some developments, and the imposition of these conditions by some local authorities in a way that introduces uncertainty about what exact responsibility the developer has to complete the development and maintain and repair the infrastructure.

We all know that purchasing a home is one of the most significant decisions anyone can make in a lifetime, and is very stressful for many people, such as a couple or a family, for whom it can be a once in a lifetime experience. Given the expensive market in which house buyers must operate today, this has never been more the case. The complexity of this issue — the role of management companies and "taking in charge" — merely compounds the stress. Young families have enough stress without thinking about who, if anyone, is going to keep common areas well tended and infrastructure in good repair.

We would all be of the view that people in general are positive and active when it comes to keeping their own homes, gardens and surroundings of their estates in good order, and in the main, most families have no problem paying into their residents' associations, which do a very good job to ensure green areas and verges are kept in shape. However, they do not need the stress of dealing with a poorly run management company, to which they pay a large sum, but over which they feel they have little control. They do not need the further stress of feeling caught in the middle of a difference of opinion between a developer and a local authority over who is responsible for infrastructure, for instance an unsafe footpath, unsafe unfinished wall or an unsafe absence of street lighting. They do not need the stress of wondering what will happen to the standard and condition of their apartment block because there is inadequate participation by certain neighbours in the management company, or the refusal of other apartment owners to pay the management company charge. They certainly can do without suspicions that their local authority may be using certain provisions of the planning laws to transfer or perhaps even abdicate responsibility for providing and maintaining public infrastructure.

Some of these problems are specific to apartment blocks, and I accept that apartment living has multiplied in this country in recent years, with more than 100,000 apartments being built in the past ten years alone. However, I do not accept this as an explanation or an excuse for the aggravation that is being visited on home buyers today. Nor does a circular letter to city and county managers reminding them of their obligations and asking them how well they are meeting them represents substantial action.

I will move on to the second area of public concern addressed by the motion, namely, the conflict of interest that might arise when senior planning officials take up employment with development companies operating in the same local area. Without naming names, which the Cathaoirleach would rightly disallow, as people should be able to defend themselves, the House will be aware that for example, no less than a former county manager of a local authority has taken up a senior position with a development company. The company in question had previously been granted planning permission for a large and controversial development. The ultimate deciding officer at the time when the permission was granted, three months later took up a senior and highly paid position with the developer in question. The perception of the person having been in a conflict of interest regarding the development is compelling, and is only one example.

Reference may be made to the Local Government Act 2001, Part 15 in particular; new provisions in the Civil Service code, standards in the Civil Service code; and Standards in Public Office Commission recommendations and review. However, as I understand it, the issue of senior local government officials accepting outside appointments or consultancies, following resignation or retirement, is not adequately covered by codes at present. We have a duty to address the concerns of the public regarding conflicts of interest, and subject to the Constitution and relevant legislation, investigate the feasibility of a moratorium on the take-up of certain types of employment by senior local authority personnel. This is a time of great concern among many citizens about the planning process and their capacity to influence it. It is also a time of massive development. This makes matters all the more pressing.

There is sufficient concern to warrant action, namely steps to control whether consultancies or other areas of the private sector can get access to information gained by an individual previously and recently employed in a senior position by a local authority. I have sought legal opinion on the matter and have been told by counsel that if the restrictions are proportionate and reasonable — we could argue about what they might be, but counsel indicates a period of a year or so — there would be no legal difficulties about implementing these measures. I would be interested to hear how the Minister proposes to deal with this matter, if there are such proposals.

At this point I turn to the third element of public concern outlined in the motion, the imposition of large development levies and special development levies by local authorities. Development contributions are attached as a condition of planning permissions and are paid by the developer in advance of construction starting, to provide a mechanism by which developers can contribute to the cost of providing public infrastructure and facilities that benefit development in the area. I have already outlined the public concern about local authorities in some way diluting or confusing their responsibility for maintaining public infrastructure and this is a compounding factor.

I understand the Department of the Environment, Heritage and Local Government contacted planning authorities in 2003 to advise them that while it was expected that developers should make an appropriate contribution towards the costs of public infrastructure and facilities, care should be taken to avoid development contributions that are excessively high. However, the level of the contributions is adopted by the members of the planning authorities and it is a matter for each local authority to make a judgment on what is appropriate in its area. That was done in County Kildare and there was considerable controversy about it. Furthermore, special development contributions or levies can be imposed on a development where exceptional costs are incurred by the local authority. I understand, and am open to correction, that such special development levies do not have to be adopted by a council.

The Minister has stated the view that "development contributions continue to be attached as a condition of planning permission, and are therefore paid by the person carrying out the development in advance of construction starting. They are not paid by individual house purchasers". That was in a reply to a parliamentary question on 29 November 2002. With in excess of €500 million being collected by local authorities in 2005, the Progressive Democrats are concerned that an inordinate cost is being introduced into the home buyers' market. Let us be clear about this. We believe that developers should make an appropriate contribution towards the costs of public infrastructure and facilities. That is not in dispute. However, we must also be confident that the pressure on home buyers is not excessive.

We must look at concerns recently expressed in the media that levies, meant to be paid by developers, are being passed on directly to home buyers, adding up to 6% to the price of the average new home, and that a typical €350,000 home includes a €20,000 levy, according to the Irish Home Builders Association which represents the majority of builders. Consider my constituency of Kildare, where €250,000 was collected in development levies in 1996. In 2000, the figure was €5.5 million. Last year it was €18 million. In the neighbouring local authority area of south Dublin the figures for 1996, 2000 and last year are €6 million, €10 million and €33.5 million, respectively. Will the Minister outline how the imposition of development levies and special development levies by local authorities might be monitored and controlled in the future?

There is also the matter of the use of the large sums of money accruing from development levies. This money is supposed to be used for the acquisition of land, the provision of open spaces, recreational facilities, roads, bus corridors and infrastructure to facilitate public transport. They are to be used in the area in which they are collected. They are not for water treatment schemes, which are already covered by a national programme, or to be used in another location, as my colleague will later outline.

Again, however, we have seen reports that development levies are in fact being used to pay benchmarking payments. As the motion states, the Minister might outline to the House how full transparency and accountability can be ensured regarding the spending of the money accrued from development and special development levies. Several of the members of Kildare County Council made strenuous efforts to find out from the council what the levies were, where they had been collected and how they were being used. Our efforts were met by what could be described as blockage and it took an enormous amount of time and energy to try to get that information.

To conclude, the Progressive Democrats' motion is precipitated by genuine public concern about certain aspects of our generally laudable planning process. I am pleased the Minister, Deputy Roche, is present and will avail of this opportunity to outline his assessment of these issues and to set out how they might be addressed, whether by primary legislation or otherwise.