Irish Independent 9/10/2002

Social housing scheme may be dropped
The controversial law which forces developers to hand over 20pc of their land for social housing is being reviewed by the Government .

Serious consideration is being given to the introduction of a more flexible approach, it was learned last night.

It has emerged that the rule only generated 50 "affordable" houses in two years. The law was strongly opposed by builders, who branded it unworkable.

A Department of the Environment circular was sent to the local authorities and other interested parties on August 14 informing them that the new scheme , contained in Part Five of the Planning and Development Act, is being reviewed.

It was also learned yesterday that the two-year "withering" rule for planning permissions is to be axed under the review because of concern that so many permissions already granted could be affected.

The review is being conducted by Environment Minister Martin Cullen, who will decide within a matter of weeks on the future of the 20pc provision, it was also learned.

Threshold, the housing organisation, said yesterday it was ominous that Part Five was being reviewed as the only complaints seemed to have come from builders.

The radical 20pc provision was introduced by the last environment minister, Noel Dempsey, and welcomed by local authorities and social housing groups but bitterly opposed by builders and developers.

The move represented the most fundamental piece of social legislation ever introduced here and was successfully tested by the Government in the Supreme Court.

It was learned that the the minister is giving review of Part Five of the Act detailed consideration.

Under the scheme, some local authorities had worked out deals with developers where houses were provided at other developments or cash compensation was paid.

The Dept of the Environment said another 30 houses would come on stream soon, with a hoped-for total of 300 by the end of the year.

The building industry, which opposed the 20pc provision, is claiming that the Government could face a €600m compensation bill as a result.

But local authorities are understood to be very anxious to retain the 20pc provision in a bid to help reduce the growing waiting list for houses while Threshold and the St Vincent de Paul also want it kept.

John Mark McCafferty, national social policy officer at St Vincent de Paul, strongly urged that Part Five be kept, especially for families seeking social housing. He said it will take 14 years to tackle the national housing waiting list, even at the most optimistic estimates.

But the Irish Home Builders Association said the scheme was not working. It supported the concept of providing a good supply of social and affordable houses, director Ciaran Ryan said.

"We are not giving two fingers to the minister on this there is a much more cost-effective and efficient way of providing these houses," he said.