Batt O'Keeffe (Cork North West, Fianna Fail)

I thank Senator Mary White for the opportunity to update the House on what is essentially a good news story, namely, the continued progress in implementing the ground-breaking housing supply mechanism introduced under Part V of the Planning and Development Acts 2000 to 2006. Part V originated following a major review of planning legislation and is now a key measure in providing for housing for all. Crucially, it makes the community's needs for social and affordable housing a material planning consideration. Part V stipulates, among other provisions, that up to 20% of land zoned for residential developments or for a mix of residential and other uses is to be reserved to meet social and affordable housing needs and made available to the local authority at its existing use value rather than its development value.

However, Part V does not simply apply across the board to all residential planning permissions granted, as is sometimes perceived and often mischievously portrayed by the Opposition. The incorrect assumption is frequently made that Part V should yield the equivalent of 20% of total housing output. However, Part V does not apply to developments of four units or less. Therefore, for example, the significant share of total housing output accounted for by once-off houses is not subject to Part V. Nor does it apply to developments on sites of less than 0.1 hectares. Moreover, housing provided through the main social and affordable programmes of local authorities and voluntary and co-operative housing associations is also not subject to Part V. The voluntary sector was responsible for delivering some 1,600 units last year. In addition, in the early years after Part V came fully into operation in 2002, much of the housing development taking place was on foot of pre-Part V planning permissions.

I mention these factors to provide a proper context within which delivery under Part V can be considered. The most recent figures available to my Department indicate that close to 6,000 affordable and social homes had been acquired by local authorities through Part V agreements up to September last year. In excess of 5,400 further homes were in progress at that stage, with 2,700 more proposed on foot of completed agreements.

In addition, developers have transferred almost 100 acres of land and close to 400 partially or fully serviced sites. Furthermore, some €78.6 million had been received in payments in lieu of land under Part V. Although much spoken about, this particular aspect is estimated to account for only about 15% of the overall yield from Part V. These moneys are ring-fenced for social and affordable housing purposes. I have already taken steps in this year's housing allocations to ensure that any unutilised Part V funds are brought into play at an early stage. I have asked all local authorities that have taken money in lieu to indicate their plans for spending that money in 2008.