John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The clarity I can bring is that special development contributions are protected in this Bill. In other words, as Senator Lombard outlined there, if a development has been allowed on the basis that a developer will either provide an infrastructure or, failing that, will provide the funding to build it, those conditions relating to the site-specific special development contributions, which are effectively planning conditions, will continue under the terms of the Bill. The general point that Senators Colm Burke and Boyhan raised is correct. Development contributions, in the general sense, are funding that local authorities derive on the basis of planning permissions but, if they are not specifically earmarked, they are not protected, if one likes, by the legislation. They will remain with the local authority that granted the permission.

I emphasise, in respect of amendment No. 7 in the names of Senator Warfield and others, that we are insisting that those earmarked special development contributions will move with the transfer of land because they are for specific projects in those areas. The general fund, which is the bulk of development contributions, will not move. It is for the relevant local authority to distribute or allocate in their administrative area however it sees fit.

I will not be accepting amendment No. 3 either. I understand that the Senators are referring to financial certainty of a sort, but it would be wrong to stitch into the legislation amounts of contributions to be made in advance. The amendment specifically states, "The financial settlement payment falling due from one Cork local authority to the other should be on an advanced, monthly scheduled basis". The issue is that the payment is on the basis of funding that the council may generate and to do it in advance assumes the level of funding that local authorities will get in a particular month from commercial rates, local property tax and the funding sources that it has. In many cases it might be possible to assume that, but I think it would be wrong to put an upfront requirement in the legislation when its calculation would be based on the income for the local authority. That cannot be absolutely and definitely predicted up front.