Arthur Morgan (Louth, Sinn Fein)
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Question 469: To ask the Minister for the Environment, Heritage and Local Government if he has directed local authorities to accept money from developers instead of either social or affordable houses under Part V; if he has given local authorities advice or direction in this regard; if so, the advice or direction he has given; if he expects local authorities to have a uniform approach across the State in this matter; and if he will make a statement on the matter. [41110/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The default option for satisfying Part V remains the transfer of a proportion of the land which is the subject of the planning application. Accordingly, agreement of a financial contribution to satisfy the Part V condition is in lieu of a percentage of land and not in lieu of housing.

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. Therefore, 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 ring-fenced 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.