Mick Wallace (Wexford, Independent)
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62. To ask the Minister for Housing, Planning, and Local Government if he will report on the views expressed in his proposal to the public consultation conducted by the Department of Finance on the issue of unused zoned and serviced land which determined that no new tax intended to encourage the development of residentially zoned and serviced land; and if he will make a statement on the matter. [19863/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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My Department did not make a formal submission in the context of the public consultation held by the Department of Finance referred to by the Deputy.

However, as the Deputy will be aware, the Urban Regeneration and Housing Act 2015 introduced the vacant site levy which is aimed at incentivising the development of vacant under-utilised sites in urban areas for residential or regeneration purposes. Under the Act, planning authorities are empowered to apply an annual vacant site levy of 3% of the market value of vacant sites, exceeding 0.05 hectares in area, which, in the planning authority’s opinion, were vacant or idle in the preceding year, in areas identified by the planning authority in its development plan or local area plan for residential or regeneration development.

As announced in Budget 2018, it is proposed to increase the rate of levy from 3% to 7% of the market valuation of relevant sites with effect from January 2020 in respect of sites included on the local vacant site registers in 2019. Legislative provision for this increase along with amendments to other relevant provisions will be tabled by way of Seanad Report Stage amendments to the Planning and Development (Amendment) Bill 2016, which has recently completed Seanad Committee Stage.

In addition, with a view to addressing the issue of land hoarding, a number of other amendments have been tabled to the Bill, during its passage in the Oireachtas. In this regard, the principal amendment is to provisions relating to the extension of duration of planning permission. The amendment proposed would permit the extension of the duration of a planning permission only where substantial works are carried out during the initial duration of the planning permission and allow for a maximum of two extensions of the duration of a permission, the combined duration of which would not exceed 5 years. This proposed amendment is part of a package of measures which are aimed at combatting land hoarding.