Michael D'Arcy (Wexford, Fine Gael)
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Question 82: To ask the Minister for the Environment, Heritage and Local Government when he expects to review planning Part V legislation to stop the practice of some local authorities taking mostly cash payments instead of finished housing units; and if he will make a statement on the matter. [14340/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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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 options for compliance with Part V.

The default option for satisfying Part V remains the transfer of a proportion of the land which is the subject of the planning application. Where the Part V agreement is to be satisfied by means other than the provision of land on-site, the planning authority must consider a range of factors, including whether it will contribute effectively and efficiently to the achievement of the objectives of the housing strategy, and whether it constitutes 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.

While the Government's clearly stated preference is for Part V to be satisfied through the delivery of completed homes, circumstances can arise in which a financial contribution may be appropriate. For example, in cases where Part V would yield only a small number of very expensive social and affordable homes, a financial contribution may provide an opportunity to support the delivery of a greater number of homes elsewhere. All monies received by local authorities under Part V must be ringfenced for reinvestment in the provision of social and affordable housing. Given that the vast bulk of the significantly increased delivery under Part V is in the form of completed homes or land, I am satisfied that the process is operating effectively.