Mary Upton (Dublin South Central, Labour)
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Question 274: To ask the Minister for the Environment, Heritage and Local Government the steps his Department has taken to end the practice of developers paying money to local authorities, which amounted to over €60 million between 2003 and 2006, in lieu of their obligations as part of Part V of the Planning and Development Act 2000; his views on whether this practice should continue to be encouraged; and if he will make a statement on the matter. [27635/07]

Mary Upton (Dublin South Central, Labour)
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Question 275: To ask the Minister for the Environment, Heritage and Local Government the reasons his Department has allowed developers to pay their way out of their obligations under Part V of the Planning and Development Act 2000 instead of being obliged to provide social and affordable housing on the site they are developing; and if he will make a statement on the matter. [27636/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 274 and 275 together.

A review of Part V of the Planning and Development Act 2000, undertaken by my Department in 2002 in consultation with a wide range of interested bodies including local authorities and representatives of the house building industry, professional institutes and voluntary housing providers, concluded that greater flexibility in the operation of the Part V mechanism was required. The review was based on maintaining the principle of community gain while allowing greater flexibility in meeting it. Measures to achieve this were contained in the Planning and Development (Amendment) Act, 2002 which introduced a range of flexible options for compliance with Part V.

Difficulties experienced on small sites and high value sites led to the conclusion that there should be an option for commuted payments. There can be advantages in accepting a financial contribution, for example, in cases where just one or two social or affordable units would be provided in a very expensive location. In addition, all funds received by way of financial contributions must be reinvested in the provision of social and affordable housing.

In finalising individual agreements with developers under Part V, each planning authority must give careful consideration to its housing strategy. In particular, where the agreement would provide for Part V to be satisfied by means other than the provision of land on-site, the planning authority must consider a range of factors, including whether the agreement will contribute effectively and efficiently to the achievement of the objectives of the housing strategy, and whether the agreement would constitute the best use of the resources available to the authority to ensure an adequate supply of housing. It must be emphasised, therefore, that the legal obligation under Part V can be satisfied by way of a financial contribution only if the local authority considers it appropriate. In other words, while the developer may propose, it is the local authority that decides.

I am satisfied that Part V is operating effectively, evidenced by its significantly increased delivery of both social and affordable housing. Accordingly, I have no plans to amend the legislation.

Mary Upton (Dublin South Central, Labour)
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Question 276: To ask the Minister for the Environment, Heritage and Local Government the way his Department plans to meet the Government's commitment in the National Development Plan to provide 27,000 new social housing units between 2007 and 2009 in view of the fact that less than 1,500 were provided in the first quarter of 2007; and if he will make a statement on the matter. [27637/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The targets for social housing in 2007 were set with the goal of making reasonable progress towards reaching the social housing targets in the National Development Plan (NDP) 2007-2013. The aim is to commence/acquire some 9,000 new social homes. Activity has increased as the year has progressed and at the end of June the number of starts and acquisitions under the local authority, voluntary and co-operative programmes, and under Rental Accommodation Scheme (RAS) long-term contracts for new supply was almost 4,000. Projections to end year indicate that performance on the local authority housing and voluntary and co-operative programmes, and RAS long-term contracts will continue to be strong. The emphasis in 2008 will be on maintaining progress to meet NDP targets. The precise targets will be published as part of the Department's 2008 Annual Statement of Outputs, which will follow on from the publication of the Revised 2008 Estimates.