Written answers
Thursday, 8 February 2024
Department of Housing, Planning, and Local Government
Local Authorities
Louise O'Reilly (Dublin Fingal, Sinn Fein)
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225. To ask the Minister for Housing, Planning, and Local Government if he is aware that local authorities are establishing designated activity companies as special purpose vehicles, thereafter disposing of lands for the purpose of development under a service level agreement; if this is considered good practice; if he has concerns about such activity; and if he will make a statement on the matter. [6014/24]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Local authorities are independent statutory bodies with their own democratically elected councils, and management and governance structures.
Under Section 63 of the Local Government Act 2001, a local authority is "independent in the performance of its functions". The disposal and acquisition of land are local authority functions.
Section 183 of the 2001 Act provides for the procedure to be followed in relation to the disposal of land held by a local authority. Under Section 183 it is a reserved function of the elected council to reject the disposal of land.
Part 9, Chapter 1 of the Local Government Act 2001 (as amended), in setting out the general functions of a local authority, provides that such functions include taking "such action as it considers necessary or desirable to promote the community interest..." Section 66(4)(i) of the 2001 Act provides that, in promoting the interests of a local community, a local authority may "enter into such contracts and make such other arrangements (including the incorporation of one or more than one company) as the authority considers necessary or expedient either alone or jointly with any other local authority or public authority or any other person".
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