Written answers

Wednesday, 31 May 2017

Department of Housing, Planning, Community and Local Government

Housing Policy

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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155. To ask the Minister for Housing, Planning, Community and Local Government if he has sought approval for the land bank plan from the European Commission under state aid rules; and his views on whether the direct subsidies to developers proposed under the plan could amount to state aid for the purposes of EU law or could amount to a public works contract for the purposes of EU law as was considered by the European Court of Justice in a case (details supplied). [26124/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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As you are aware, the State has a significant land bank and given the current acute housing shortage, with the associated problems of access and affordability facing households, it is crucial that much needed housing is delivered from these sites in the shortest possible timeframe and with the maximum social dividend. In order to promote the development of these sites, on 27 April 2017, I published the Rebuilding Ireland Housing Land Map. The Map is a vital initial step in the new strategic approach to State land management, which will be further developed through the forthcoming National Planning Framework, to be titled "Ireland 2040: Our Plan".

The datasets published on the map include details of over 700 local authority and Housing Agency-owned sites, totaling some 1,700 hectares, as well 30 sites (covering about 200 hectares) owned by State or semi-State bodies. The map is available to view on the Rebuilding Ireland website at: .

The specific approach to housing delivery on each site, including the optimum tenure mix and delivery mechanism, is a matter for the local authority concerned, the elected members included, who are best placed to understand the housing needs in their areas. Given the differences in terms of scale, location and other site characteristics the approach from site to site will vary with some sites suitable for social housing only and others being more suited to a mixed tenure approach.

Mixed-tenure development on suitable publicly-owned sites provides an important avenue for the delivery of social and affordable housing quickly in a fully integrated and sustainable community. Opening up the supply of State land in this way, for mixed-tenure housing, is a critically important policy in addressing a situation where the pace of recovery in the house development sector is slower than it needs to be, to meet demand. In practical terms, the development of these sites will mean accelerating social housing delivery and securing more homes for sale and rent at lower and more affordable price points. In this regard, I welcome the fact that two of the Dublin local authorities have already brought forward four key, large-scale sites, capable of delivering 3,000 new homes, and I expect other local authorities to follow suit. 

With regard to the specific judgment of the Court of Justice of the European Union referred to, I understand that the case involved “tax incentives” and “subsidy mechanisms”, neither of which are part of the State land initiative.  In such circumstances, the question of EU State Aid approval does not arise.  Insofar as procurement is concerned, the development of each site will be subject to an open competitive process.

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