Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 54: To ask the Minister for the Environment, Heritage and Local Government if he will re-examine the structures where increased capital charges are being sought from industries and businesses in rural areas such as Cavan and Monaghan towards the provision of water and sewerage systems, thus putting undue pressure on industries, tourism and so on which could be the means of job loses and further indirect charges to the Exchequer through necessary social welfare payments and loss of PAYE; and if he will make a statement on the matter. [8098/08]

John Gormley (Dublin South East, Green Party)
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Under Section 48 of the Planning and Development Act 2000, planning authorities may levy development contributions in respect of public infrastructure and facilities provided by, or on behalf of the local authority that benefit development in the area, based on a scheme of contributions adopted by the elected members of the authority. Income from the schemes must be applied to pay for facilities, such as wastewater and water treatment facilities, drains and watermains, servicing new development. The Act requires planning authorities to base the contributions on the actual cost of providing the infrastructure in question.

While there has been an increase in receipts from development contribution schemes in recent years, this is reflective of very significant intensification in construction activity which has led in its turn to increased demands for infrastructure, a fairer application of contributions across all development sectors and more accurate estimates by local authorities of their anticipated expenditure on infrastructure works.

In May 2007 my Department published a report arising from the deliberations of an Inter-Departmental Committee on Development Contribution Schemes. This report was also accompanied by a guidance circular to all planning authorities which focused on a number of key issues identified by the Committee, including the importance of transparency in relation to the extent to which linkages between the development levies paid and the infrastructure projects funded from those revenues are demonstrated, and the importance of consultation with County Development Boards on draft schemes.

The guidance also highlighted the potential impact of excessive charging on local and national competitiveness. In this context, planning authorities were reminded that securing future income streams from development contributions depends on achieving the appropriate balance between the necessary levels of funding now, and the need for local authority areas to continue to represent an attractive location for future inward investment.