Paul Connaughton Snr (Galway East, Fine Gael)
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Question 30: To ask the Minister for the Environment, Heritage and Local Government the impact higher development levies is having on the housing market; and if he will make a statement on the matter. [36607/05]

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 84: To ask the Minister for the Environment, Heritage and Local Government his views on whether the level of development levies charged by local authorities are acceptable and sustainable; and if he will make a statement on the matter. [36620/05]

Dick Roche (Wicklow, Fianna Fail)
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I propose to take Question Nos. 30 and 84 together.

Section 48 of the Planning and Development Act 2000 provides for the making, by planning authorities, of development contribution schemes which set out the basis for the determination of the scheme and the contributions to be paid in respect of the different classes of public infrastructure and facilities. In my Department's circular letter PD 4/2003 of 27 June 2003 planning authorities were advised 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. Development contributions schemes are adopted following a statutory public consultation phase, during which my Department has an opportunity to comment on the draft schemes. The final schemes, including the level of contribution, are adopted by the democratically elected members of the planning authorities and it is a matter for each local authority to make a judgment on what is appropriate in their area.

Development contributions should not unduly affect the price of houses and level of inflation. The major driver of house price increases in recent years has been the demand for housing, fuelled by rapid economic growth and demographic changes. The Government have responded to this unprecedented demand by focusing on measures to boost supply as the most appropriate way to bring moderation to the rate of house price increases. The key component of this strategy is ensuring a supply of serviced land for housing which the development contribution system helps fund.

Development contributions continue to be attached as a condition of planning permission, and therefore paid by the person carrying out the development in advance of construction starting. They are not paid by individual house purchasers.