Written answers

Thursday, 4 May 2006

Department of Environment, Heritage and Local Government

Planning Issues

5:00 pm

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 44: To ask the Minister for the Environment, Heritage and Local Government if his Department will be bringing amendments to Section 180 of the Planning and Development Act 2000 to allow local authorities to take estates controlled by management companies in charge to alleviate this additional financial burden on young persons buying homes; and if he will make a statement on the matter. [16650/06]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 88: To ask the Minister for the Environment, Heritage and Local Government the way in which local authority services are to be financed over the next few years; the steps he intends to take to ensure that local authorities have sufficient funds to take in charge and maintain all housing developments in their areas, in order that there is no longer a need for management companies to operate in housing estates; if he intends to ban management companies in housing estates; and if he will make a statement on the matter. [16479/06]

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 93: To ask the Minister for the Environment, Heritage and Local Government the number of households in the country paying management company charges; and if he will make a statement on the matter. [16593/06]

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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I propose to take Questions Nos. 44, 88 and 93 together.

There are a number of provisions in the Planning and Development Act 2000 relating to the finishing of estates and the taking in charge of estates. Section 34(4)(g) allows a planning authority to attach a condition to a planning permission requiring the giving of adequate security for the satisfactory completion of the development. Planning authorities have been advised by my Department in the past, and again in Circular Letter PD 1/06 of January 2006, that their policy in this area should include the provision of an acceptable level of security by the developer, which will not be released until the estate is completed to the specified standards.

Under section 180 of the Planning Act, planning authorities are obliged to begin the procedures to take in charge the public services of housing estates once these are completed in accordance with the terms of the planning permission, where they are requested to do so by the developer or a majority of the residents of the housing development. In the case of housing estates which are not completed in accordance with the terms of the permission and where the planning authority has not taken enforcement action within the appropriate period, planning authorities are also obliged to begin the procedures to take the public services in charge where they are requested to do so by a majority of the residents. In the case of developments which are not completed satisfactorily completed, planning authorities apply the security provided by the developer to that satisfactory completion. It is not proposed to amend section 180 of the Planning and Development Act 2000.

Local authorities may apply their own resources to the taking in charge of estates. Since the introduction of the Local Government Fund in the Local Government Act 1998 local authorities now have a ring-fenced, buoyant source of central government funding. The amount available from the Fund rose from some €797m in 1999 to €1.3bn in 2005: this now represents about 30% of their current funding needs. General purpose grants from the Fund this year amount to €874.7m, an increase of 7% over the amount provided last year and have more than doubled since the Fund was introduced in 1999. This increased funding together with income raised locally through commercial rates and charges for goods and services has enabled local authorities to widen and improve the services they provide to business and communities. I am satisfied that these elements will enable local authorities to continue to provide services to a reasonable level.

Management companies traditionally operated for apartment developments, as it is necessary to have arrangements in place for the upkeep and maintenance of the buildings and shared private areas of such developments. A Law Reform Commission Working Group is currently examining a range of legal issues in relation to the management of multi-unit structures and the Government will consider the recommendations in its final report, including the need for any new legislation in this area.

In late 2005 I requested that a survey be carried out of planning authorities regarding their policy on attaching planning conditions relating to management companies in housing developments. The responses to that survey indicate that the majority of planning authorities do not attach conditions to planning permissions requiring management companies to be set up in the case of housing estates. A number do in very specific circumstances, for example, where there is a shared waste water treatment plant between a number of houses.

On 26 January 2006 my Department issued Circular Letter PD 1/06, referred to above, reminding planning authorities of their responsibilities in relation to the taking in charge of estates and asking that each authority adopt a policy in this regard. This circular clearly stated that the existence of a management company to maintain elements of common buildings, carry out landscaping, etc. must not impact upon the decision by the authority to take in charge roads and related infrastructure where a request to do so is made. This circular also requested a report from each authority on the issues of estates to be taken in charge. The vast majority of returns have now been received and these indicate that virtually all planning authorities either have a policy in place for taking estates in charge or are in the course of developing one. The returns also indicate that about 550 estates will be taken in charge in 2006, affecting almost 26,000 houses.

I am considering whether any further advice should issue to planning authorities regarding planning conditions and management companies. My Department does not collect figures on the numbers of households paying management charges.

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