Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

601. To ask the Minister for Housing, Planning, Community and Local Government the rules on the spending of contributions raised from development levies by local authorities; and if he will make a statement on the matter. [29625/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

With regard to development contributions, my role as Minister is to provide the necessary legislative and policy framework governing development contribution schemes operated by planning authorities. Under sections 48 and 49 of the Planning and Development Act 2000, as amended, planning authorities may levy development contributions in respect of public infrastructure and facilities benefiting development in the area that is provided by, or intended to be provided, by or on behalf of the local authority. Examples of such infrastructure and facilities include roads, footpaths, public lighting, open spaces etc.

The basis for the determination of a development contribution is set out in a development contribution scheme adopted by the elected members of a local authority, and planning authorities may make one or more schemes in respect of different parts of its functional area. In addition to the terms of the scheme, planning authorities may require the payment of a special contribution in respect of a particular development where specific exceptional costs not covered by a scheme are incurred by any local authority in respect of public infrastructure and facilities which benefit the proposed development. The adoption of these schemes is a reserved function of the locally elected members of each planning authority, and it is a matter for the members to determine - (i) the level of contribution and the types of development to which they will apply, and (ii) the expenditure of the contributions received within the confines of the scheme conditions.

Development contributions can only be levied in respect of capital funding for public infrastructure and facilities and as such cannot be used to cover current expenditure costs. Any development contributions accruing to the local authority under the provisions must be accounted for separately in the Capital account of the local authority. Income from development contributions must be ring-fenced to pay for public infrastructure and facilities servicing new development and it is a matter for each local authority to determine the allocation of those incomes, having regard to the provisions of sections 48 and 49 of the Planning and Development Act 2000, as amended.

My Department is responsible for monitoring the local government sector’s compliance with fiscal rules set out as part of the management of the Stability and Growth Pact. These include the contribution of the local government sector to the General Government Balance (GGB) and also controls to be exercised under the Expenditure Benchmark requirements. Arising from the Government’s effort to meet commitments in relation to the General Government Deficit limit, local authorities have been directed that, similar to the revenue account activity, capital expenditure should not exceed capital income within the reporting year. The precise manner in which capital and current accounts are managed in order to achieve the overall balance necessary is a matter for individual local authorities themselves. However, within these overall limits, there is additional capacity for the expenditure of built-up capital balances and own resources funded by development contributions on hand by local authorities, which must be sanctioned by my Department. In reviewing requests for sanction, consideration is given to ensuring that priority infrastructural investment can proceed, that contractual commitments and on-going projects can proceed and that development contributions already collected and aligned to specific capital projects can be utilised efficiently.