Gerard Murphy (Cork North West, Fine Gael)
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Question 549: To ask the Minister for the Environment, Heritage and Local Government if he will make a statement on the arrangements made between his Department and the building industry that allows both developers and builders profit on Part V agreements with local authorities. [3175/06]

Noel Ahern (Dublin North West, Fianna Fail)
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Section 96(3)(d) of the Planning and Development (Amendment) Act 2002 provides that where houses or sites are to be transferred to the planning authority the price of such houses or sites are determined on the basis of building and attributable development costs as agreed between the authority and the developer, including profit on the costs.

Following representations made by the Irish Home Builders Association, local authorities were advised that "profit on costs" in section 96 should, in addition to contractor's profit, allow for developer's profit, the level of which can be up to 15% depending on a number of factors. Local authorities were also advised of the need to ensure that any agreements entered into under Part V, which includes agreement on the level of profit, should constitute the best use of resources available to them for the delivery of social and affordable housing.