Martin Heydon (Kildare South, Fine Gael)
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126. To ask the Minister for Environment, Community and Local Government his plans to address bond arrangements entered into by developers in order that they are sufficient to ensure the satisfactory completion of estates within reasonable time frames and their subsequent taking in charge by local authorities and Irish Water; and if he will make a statement on the matter. [18215/14]

Jan O'Sullivan (Limerick City, Labour)
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My Department provided comprehensive updated guidance to local authorities in relation to the operation of development bonds and securities on new developments as recently as June 2013. This guidance – which can be found on my Department’s website - provided advice on updated practice on:

- the types of securities to be applied in respect of new development;

- the requirements for adequate securities to be put in place to ensure the satisfactory completion of all relevant infrastructure associated with a development so that it can be handed over to a local authority or management company on completion;

- the default events such as non-compliance with the conditions of a planning permission, or the bankruptcy or liquidation of a developer, to trigger the calling in of the security;

- the arrangements regarding the use of securities in phased developments;

- the assessment by planning authorities of security mechanisms proposed by developers and the standardised wording that might be used by planning authorities in the drawing up of such bond securities;

- the approaches to be used in the computation of bonds having regard to the various sizes of developments and the infrastructural requirements therein; and

- the release of bonds on the satisfactory completion of a development.

The application of this guidance is essentially an enforcement matter for planning authorities but I propose to further examine how the arrangements regarding bonds and securities might be better operated in practice to ensure the more streamlined completion and taking in charge of developments.