Catherine Murphy (Kildare North, Independent)
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Question 128: To ask the Minister for the Environment, Heritage and Local Government his views on the impact of development contributions on affordable housing; if he has given consideration to exempting those houses that are subject to a claw back from this scheme; and if he will make a statement on the matter. [42579/06]

Noel Ahern (Dublin North West, Fianna Fail)
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Development contributions allow local authorities to recoup some of the costs to public funds of servicing land for private development. Without them, this servicing could not proceed or the full cost would have to be borne by the taxpayer. They are also a way of recouping some of the "betterment", which local authorities add to the value of land when it is serviced.

Under the Planning Acts, the money is ring fenced to pay for facilities servicing new development, for example, roads, water and sewerage services and other amenities including community facilities, landscaping and public transport infrastructure provided by or on behalf of a planning authority.

Development contributions are imposed on all types of new development that relies on the services mentioned in particular, housing. Development contributions are attached as a condition of planning permission, and are therefore paid by the person carrying out the development in advance of construction starting.

Affordable homes attract development contributions, as such homes are private homes, but sold at a discount to the market value and subject to a claw back on re-sale. The claw back provision is in place to protect the State's interest in the house and to ensure that there is no short-term profit taking on the resale of an affordable house. It is not proposed to exempt such houses from the requirement of development contributions.

Joe Walsh (Cork South West, Fianna Fail)
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Question 129: To ask the Minister for the Environment, Heritage and Local Government when work will commence on an affordable housing scheme at Darrara, County Cork; and if he will make a statement on the matter. [42246/06]

Noel Ahern (Dublin North West, Fianna Fail)
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Cork County Council advertised for expressions of interest from consultants on 22 September 2006, for the preparation of the relevant documentation required for the Part 8 planning process, and for the preparation of cost plans, tender documentation and the construction contract in respect of the site at Darrara. Following a shortlisting exercise, further details on prices and proposals have been sought from six applicants and the closing date for receipt of this additional information is 20 December 2006. The Council confirmed that interviews with the shortlisted candidates will be held in January next year, with the successful consultant appointed immediately.

It is proposed to commence construction as early as possible in 2007, subject to the successful completion of the planning process. My Department continues to keep in close contact with Cork County Council to ensure that the project is progressed as quickly as possible.