Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I thank Senator Burke again for raising this issue, which is complex.

Part V of the Planning and Development Act 2000 specifies that up to 20% of land zoned for residential use must be reserved for the provision of social and affordable housing in each local authority area. This is transferred to local authorities at existing use value by way of land, units or serviced sites.

Following the amendment of the 2000 Act by the Planning and Development (Amendment) Acts of 2002 and 2010, and other guidance issued on implementation issues by my Department in July 2003 and November 2006, developers and house builders can offer a range of alternative ways to meet their Part V requirements. These alternatives include the provision of off-site serviced sites, the transfer of other lands to the planning authority within its administrative area, payment of a financial contribution and entry into rental accommodation availability agreements.

Generally speaking, conditions attached to a planning permission requiring the payment of development contributions will require the developer to pay the specified amount, often in advance of development commencing. It is my understanding that, on appointment, a liquidator becomes responsible for discharging the liabilities of a developer, including the development contributions attached to a planning permission. Without so discharging, the development may be classified as unauthorised development. While I am aware generally of the difficult financial position of local authorities, and have brought forward important changes to the development contribution regime in that regard, I am not aware of specific difficulties in securing development contributions from liquidators.

In recognition of the challenges presented by the current economic environment, my Department issued updated guidance to local authorities early last year on options for ensuring compliance with Part V requirements. In light of market conditions, the financial position of local authorities and the Exchequer, and the difficulties associated with the over-supply of affordable housing, my Department advised local authorities that mechanisms for discharging Part V obligations, which would not place additional funding pressures on local authorities, were to be used. Such options include financial contributions, reduced numbers of units, or lands in lieu.

The Government's housing policy statement, published in June 2011, announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. These schemes were introduced to bridge the affordability gap that emerged during the boom years, preventing middle-income households from realising their ownership aspirations. However, affordable housing did nothing to address the underlying problem - market overheating - with an unsustainable gap between prices and incomes. In addition, affordability has eased to such an extent that there is little or no demand for affordable housing. Indeed, in recent years the challenge has been to deploy existing affordable stock productively rather than deliver new affordable housing.

The review of Part V is now almost concluded and I have also asked the Housing and Sustainable Communities Agency to provide me with a stand-alone analysis of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures.

Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work and I expect to make announcements in this regard in the near future. As the next step in this process, I intend to publish public consultation documents on both topics in the coming weeks.