Michael Lowry (Tipperary North, Independent)
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Question 192: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to an EU decision regarding local need clauses imposed by several local authorities in the planning process; the impact that this decision will have on local authorities; if he has instructed local authorities to take cognisance of the ruling in making decisions; and if he will make a statement on the matter. [45467/08]

John Gormley (Dublin South East, Green Party)
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My Department received a Letter of Formal Notice dated 27 June 2007 from the European Commission under Article 226 of the Treaty, seeking the observations of the Government on whether the "local needs" test contained in a number of County Development Plans for the granting of planning permission for one-off dwellings in rural areas is compatible with Articles 43 and 56 of the EC Treaty which guarantee respectively the freedom of establishment and the free movement of capital.

Following discussions with the European Commission, my Department issued Circular Letter SP 5/08 to all County Managers on 30 September 2008, regarding local need policies in cases where there is an application to build a dwelling from which a full-time business will operate. Local authorities were asked to examine their development plans in light of the updated guidance provided in the circular to ensure their compatibility with Articles 43 and 56 of the EC Treaty. A copy of the Circular Letter is available on my Department's website at www.environ.ie.