Seanad debates

Wednesday, 5 October 2022

Nithe i dtosach suíonna - Commencement Matters

Housing Provision

10:30 am

Photo of Victor BoyhanVictor Boyhan (Independent)
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I had expected the Minister would be here but I have no issue with the Minister of State being here instead and I thank him for coming to the house to deal with this issue.

According to media reports, though not according to any politician I have spoken to, the controversial planning rules for the build to rent, BTR, apartments are set to be axed. I think it stemmed from the deliberations of the Acting Chairperson's party Ard Fheis at the weekend. A lot of media coverage was dedicated to it and to the Minister's intentions over the weekend.I understand, again from reading media reports, that this was discussed. I welcome that decision, if it has been made. I certainly welcome that we are having a conversation about it and the direction of policy. As the Minister of State knows, a failed policy was established in 2018. While there has been some commentary about the previous Minister, which I will not get into, I remind the current Minister and the current regime that this policy has continued to today. This Government is now, at almost two and a half years, nearly at the mid-point of its term. It has continued the policy it is now saying needs to be changed and that there needs to be a better system. It is better late than never when it comes to the change, but it is important we do not lose sight of that fact.

The BTR rules were introduced by the Minister's predecessor in 2018 and, as I said, continue to be in place today. It means that apartments owned by institutional investors and developers, specifically for the rental market, do not have to comply with the minimum size standards required for homes for sale. That is the subtle difference, especially as regards floor space but also storage, which is a particular challenge. We now have a surplus of some of these units, many of which have been improved through planning, either by the planning authority or through An Bord Pleanála, but have not been developed, despite a housing crisis. We have something in the system that has been approved and yet we have the task of housing. This measure is pragmatic and I generally welcome the idea and concept behind it. As I said, I know this was discussed at the Fianna Fáil Ard-Fheis and was reported widely in the media and through television commentary.

I would like to ask the Minister of State a few questions. If we do not have the detail today, we can follow up with a supplementary question, if that is okay with him. When will the Government seek to amend the existing guidelines and changes that have been discussed? Will it be the case that developers already in the planning process or that have been granted planning permission will be allowed to continue under the existing regime? While I see some logic and understanding for building out, and under the current regime we have to have some sort of planning, we need an end game. There has to be a cut-off point where the regime has to end, if that is Government policy. No doubt, we will discuss that at the Oireachtas Joint Committee on Housing, Local Government and Heritage, and other forums within this House. Will converting existing BTR planning permissions into conventional standard units - homes - especially in the area of affordable and social housing, be considered?

I am delighted the Minister of State is present rather than the Minister. I prepared this Commencement for the Minister, which included asking him whether he could share with me his Government partner's view on this policy. Now the Minister of State is in the hot seat, which is great, and I am interested in his party's policy. I am particularly interested in Fine Gael's view on it. If he cannot address all those details today, I ask him to follow them up.

Generally, I welcome this reform. It makes absolute sense. We have to be pragmatic. No policy stays static; it has to be reviewed. This is a particularly good reform, albeit late.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I will immediately impart our own views. I share the Senator's welcome for this decision. The BTR rules were a retrograde measure and it is important they are addressed. I will give the stock response but I will also bring the specific questions back to the Minister. I was not at the Fianna Fáil Ard-Fheis at the weekend, as the Senator will appreciate.

Photo of Victor BoyhanVictor Boyhan (Independent)
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Neither was I.

Photo of Lorraine Clifford-LeeLorraine Clifford-Lee (Fianna Fail)
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That is a pity. The Minister of State would have enjoyed it.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I am sure I would. I did not see or hear what my colleague, the Minister-----

Photo of Victor BoyhanVictor Boyhan (Independent)
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The Minister did not hear it either.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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-----Deputy Darragh O'Brien, said at that. Specifically in response to the question posed, the section 28 guidelines, Sustainable Urban Housing: Design Standards for New Apartments - Guidelines for Planning Authorities, published in 2018 and updated in 2020, identified BTR as a specific type of residential development for planning purposes, with some variation in resident support and amenity requirements, and dwelling mix and design standards, relative to apartments generally. These differences are set out in specific planning policy requirements, SPPRs, 7 and 8 in the apartment guidelines. In carrying out their planning functions, which include formulating development plans and assessing planning applications, planning authorities and An Bord Pleanála must have regard to guidelines issued under section 28 of the Planning and Development Act and must comply with any SPPRs contained within such guidelines.

Strategic housing development, SHD, permissions made to An Bord Pleanála show that, as of July 2022, the board had granted permission for 50,792 apartments, of which 12,230 were specifically BTR units at the time of permission. Of the 12,230 approved BTR units, 2,669, or 22%, have commenced on site and 9,561, or 78%, have not started. Given current site activation challenges and construction costs, this time-lag is to be expected. However, the figures serve to demonstrate that a significant quantum of BTR units have been permitted through the SHD process and remain outstanding.

In summary, despite an uncertain economic outlook and a reduction in activity in 2022, it is clear that, since 2018, the BTR market has become established and that there are a large number of outstanding planning permissions. Given the quantum of development delivered and permitted to date, there is no longer a planning rationale to retain BTR as a separate development type subject to more flexible design standards. This may be achieved by amending the section 28 apartment guidelines to remove the specific requirement that BTR is identified as a separately defined type of development with specific design standards. This amendment to the apartment guidelines would not preclude future BTR development. It would simply remove the need to describe BTR as a distinct class of development for planning purposes and require the standards for BTR development to be the same as those for all other permitted apartment developments.

It is important there would be a transition period whereby BTR proposals currently in the planning system, whether SHD or otherwise, or on which significant work has progressed and are about to enter the planning system can be progressed to a planning decision based on the transitional arrangements that will apply. It is therefore considered reasonable that amended apartment guidelines that delete SPPRs 7 and 8 would be issued before the end of 2022.

Again, I hope this gives some clarity to some of the questions. If we can come back on the other specific questions, I will get the Department to respond to the Senator directly.

Photo of Victor BoyhanVictor Boyhan (Independent)
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I thank the Minister of State. I warmly welcome this decision, which makes sense. Nothing stays static. I would like the Minister of State to convey to the Department that it would be very helpful if we had the written statement because we have none, which is unusual for this particular issue. It would be helpful if someone from the Department could fax or email it to us this morning. I thank the Minister of State for that.

I would also like the Minister of State to take back to the Minister that it is important we go through processes. External communication is important. While it is all very good to have this idea announced at a party's national conference, there are three parties in this Government. It is important we do not speculate about policy in some media publication. We have the Oireachtas Joint Committee on Housing, Local Government and Heritage. I urge the Minister, and I would have said this if he was in the Chamber today, to come as early as possible to that joint committee to explain the thinking and, more important, the timeline of this measure. If we have agreed on this, and I presume it will be Government policy at some point and was not just a kite-flying exercise, it is important we communicate with the relevant Oireachtas committee, engage across the Government parties and the Opposition, and have a briefing on it.

Time does not stand still. We need to move fast on this. I am supportive of this measure and welcome it. I would like the Minister of State's officials to convey that to the Minister. I am genuinely supportive of the concept but let us engage with parliamentarians on it.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I thank the Senator for his supportive comments. Again, I apologise that we do not have copies of the statement. I am happy to give him my copy when we finish this morning.

BTR development was, in effect, established as a separate class of development for planning purposes arising from Sustainable Urban Housing: Design Standards for New Apartments - Guidelines for Planning Authorities. The latest market data point to a period of investment in the BTR development sector that has served to establish BTR as an element of overall housing mix between 2018 and 2022. This investment means there is no longer a planning rationale to retain BTR as a separate development-type subject to more flexible design standards.

It is important there would be a transition period whereby BTR proposals currently in the planning system, or on which significant work has progressed and are about to enter the planning system, can be progressed to a planning decision. It is therefore considered reasonable that amended apartment guidelines that delete SPPRs 7 and 8 would be issued before the end of 2022.

Again, I will take back the Senator's request for the Minister to come before the Oireachtas joint committee. That would be most useful to give clarification on this matter. We will get back to the Senator regarding the specific questions he asked.

Photo of Lorraine Clifford-LeeLorraine Clifford-Lee (Fianna Fail)
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I have been informed that no Minister is available to address Senator Boylan's Commencement matter, for which I extend the apologies of the House. I believe Senator Boylan has agreed to withdraw this Commencement matter and will submit it at a future date. Is that okay?

Photo of Lynn BoylanLynn Boylan (Sinn Fein)
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It is disappointing but I thank the Acting Chairperson.

Photo of Lorraine Clifford-LeeLorraine Clifford-Lee (Fianna Fail)
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It is very disappointing but it is to be hoped the Senator's matter will be taken in early course.I take this opportunity to extend a very warm welcome to students from St. Mary's National School, Athlone, who have joined us in the Public Gallery. They came in at the end of Commencement matters, so I hope they got to see some of the action. They and their teachers are very welcome to Leinster House. Hopefully, they will enjoy their trip and it will inspire some of them to get involved in their communities and possibly stand for election some day.

Photo of Victor BoyhanVictor Boyhan (Independent)
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Hear hear - plenty of vacancies in here.

Cuireadh an Seanad ar fionraí ar 11.11 a.m. agus cuireadh tús leis arís ar 11.30 a.m.

Sitting suspended at 11.11 a.m. and resumed at 11.30 a.m.