Late last week the new Programme for Government was released and yesterday Willie Penrose TD was appointed as Minister of State with special responsibility for Housing and Planning, a so-called ‘super junior position’ in that it comes with a seat at the Cabinet table.
Firstly, I very much welcome that housing and planning have been recognised as being of sufficient importance that they merit a Minister of State, and have an elevated status amongst the junior ministry positions. They are clearly two key, inter-related issues affecting society.
Housing is about shelter, home, community and neighbourhood. There are some standout issues to deal with here – unfinished estates, the social housing waiting list, the regeneration of some social housing estates, confidence in the housing market, negative equity, mortgage payments, etc. Planning is about ordered and organised development; it shapes what is built and should be an important part of addressing the crisis with respect to helping create the conditions for growth and recovery. Decisions around development affect society into long term, in that what we build now the next generation will inherit, along with its associated costs in relation to servicing, maintenance, energy and fuel, productivity and competitiveness, the environment, and so on.
Below I have pulled out statements relating to housing and planning from the new Programme for Government, excluding the material around mortgages etc, and provide some brief thoughts in relation to some of them (material from the Programme for Government is in italics). At the end of the post, I set out some of the things that I would like to see the new Minister for Housing and Planning do.
Housing
We will mandate the Minster for the Environment, in conjunction with Local Authorities, to bring forward a coherent plan to resolve the problems associated with ghost estates. This plan will be developed in cooperation with NAMA.
This has already been done by last government through the expert group set up to examine unfinished estates. The draft report is already in hand, and draft manual suggesting site resolution plans has been out for consultation. There is room for improvement, but it will involve statutory changes. I’m assuming here that the incoming government has an alternative solution that it wants to implement or wishes to refine/extend the plan that has been developed by the DEHLG.
We will introduce a staged purchase scheme to increase the stock of social housing, while achieving the best possible value for public investment. Under the terms of this scheme, leased dwellings will revert to the ownership of local authorities and housing associations at the end of the leasehold period.
As I understand this, it is a revised version of the Social Housing Leasing Initiative in that leased property will not revert to the developer after twenty years, but will become a state or housing association asset.
We will enable larger housing associations and local authorities to access private sector funding for social housing by issuing ‘social housing bonds’, secured on the value of their existing housing stock when market conditions allow.
We will amend the Housing (Miscellaneous Provisions) Act (1992) to require all local authorities and housing associations to register with the Department of the Environment if they wish to access Government subsidies or other supports for social housing provision
We are committed to urban regeneration to revitalise communities in areas such as Limerick to give families a better quality of life.
I would hope that this also means reviving PPP schemes for estates such as St Michael’s and Dolphin Barn, rather than exclusively focusing on the large projects that have attracted more media attention such as Limerick. There is much social housing that either needs to be replaced or refitted to make more habitable.
We will improve the quality of information available on the Irish housing market by requiring that the selling price of all dwellings is recorded in a publicly available, national housing price database.
We will legislate for tougher and clearer rules relating to fire safety in apartment buildings and will introduce a new fire safety inspection and certification regime.
We will establish a tenancy deposit protection scheme to put an end to disputes regarding the return of deposits.
We are committed to ending long term homelessness and the need to sleep rough.
To address the issue of existing homelessness we will review and update the existing Homeless Strategy, including a specific focus on youth homelessness, and take into account the current demands on existing housing and health services with a view to assessing how to best provide additional services.
In line with our Comprehensive Spending Review, we will alleviate the problem of long term homelessness by introducing a ‘housing first’ approach to accommodating homeless people. In this way we will be able to offer homeless people suitable, long term housing in the first instance and radically reduce the use of hostel accommodation and the associated costs for the Exchequer.
We believe that prevention is better than cure and we will aggressively target the root causes of homelessness. By having a dedicated body to coordinate policy across Government we will target initiatives in cross cutting areas which will aim to prevent as much as possible problems like homelessness.
Planning
We will abolish the position of County Manager and replace it with that of Chief Executive, with a limited range of executive functions. The primary function of the Chief Executive will be to facilitate the implementation of democratically decided policy.
This seems to suggest that county managers will become the puppets of county councillors. The irony of renaming a job as a Chief Executive and removing executive abilities is entirely absent.
A democratically-decided Regional or City Plan will replace the present top-down Strategic Planning Guideline model.
We will make the planning process more democratic by amending the 2010 Planning and Development Act to allow for detailed public submissions on zoning, and to rebalance power towards elected representatives.
I don’t fully follow these two points because development plans are decided by elected officials in a bottom-up process that is guided by a regional and national framework. Councillors continue to hold the reserve function and sign off on plans. Planners help put them together, and they do this inside an Irish and EU legislative framework. The point seems to be that the incoming coalition view the new process, as directed by the new Planning and Development Amendment Act, as being too much shaped by the central state within a wider strategic framework. To do away with a strategic planning framework, which this seems to be suggesting, would seem to me to be a major folly – we do need joined up planning across scales – plans need to be harmonised across local, county, regional and national scales so that they work in concert with each other and not against each other.
The POG seems to recognise this as it states: “We will seek to better coordinate national, regional and local planning laws in order to achieve better and more coordinated development that supports local communities instead of the current system that favours developer led planning.”
There is clearly a contradiction here. Planning is accused of being both too top-down from the centre and developer-led, and yet the power to approve the plans lies in the hands of councillors (although the Minister of Environment has certain veto powers if local plans contravene good practice and legislative conditions). In my view, planning has to be strategic because it needs to be part of the process for guiding development, growth and recovery to help get us out of the crisis we’re in. That will involve tough decisions about where we want to concentrate development to create the critical mass – in terms of population, higher order services, infrastructure – needed for places around the country to be competitive in the global economy in terms of attracting FDI. Planning should not take place purely at the local scale, reflecting localism without adequate regard to wider regional and national aims and objectives. Part of the reason we’re in the mess we’re in is because we had planning that did not take adequate notice of principles of planning, lacked joined-up thinking spatially and sectorally, that did not fully understand its obligations with respect to EU directives and initiatives, that ignored evidence to inform decision-making, and that allowed cronyism, clientelism and localism to operate. At the same time, planning has to be democratically mandated and people should have a say in the development process. That said, councillors do need to have a good understanding of their roles, obligations, responsibilities with regards their planning remit and the principles of sustainable and balanced development. We simply cannot afford to re-establish a weak, laissez faire planning system.
We will improve local transport access by making local transport plans an integral part of local Development Plans. We will force all local authorities to develop a transport plan in conjunction with their County/City Development Plans, and Local Areas Plans.
We will pass legislation to allow local authorities take housing estates ‘in charge’ after three years if there are no significant financial implications for local authorities, and substantially increase existing penalties for those who break planning laws.
We will require local authorities to carry out an ‘Educational Impact Assessment’ for all new zonings for residential development to ensure an adequate supply of school places.
Local authorities will be required to carry out a flood risk report in the preparation of their City and County Development Plans, and will also be legally required to manage flood risk through sustainable planning and development.
We will introduce a single national building inspectorate service.
We will examine what services could be converged between two or more local authorities, such as technology support, human resources and fire services.
We are committed to a fundamental reorganisation of local governance structures to allow for devolution of much greater decision-making to local people. We will give local communities more control over transport and traffic, economic development, educational infrastructure, and local responses to crime and local healthcare needs.
I have no idea what this last statement really means in practical terms, how such devolution will operate, or how communities will gain and exercise control. It’ll be interesting to see what proposal they come up with.
What I would like to see with respect to housing and planning
That the progress made with the Planning and Development Amendment Act is continued. That we push forward with joined up planning, with plans at different scales – local, county, regional and national – working in concert with each other, not against each other.
That we eradicate cronyism, clientelism and localism from the planning system, whilst planning remains democratically mandated.
That planning is informed by hard evidence and cost benefit and impact assessments, not anecdote and favour.
That councillors receive mandatory training on their roles, obligations and responsibilities with respect to planning, the logics, principles and practicalities of good planning, and the legislative framework in which planning takes place.
That the power of the reserve function and decision making comes with proper responsibilities and liabilities (e.g., if councillors ignore the advice of planners and others and zone land and give permissions for building on flood plains, those that voted in favour should be personally liable if those properties then flood, etc).
That we meet our obligations with respect to different EU directives relating to water, habitats, etc.
That we address pressing issues with regards to unfinished estates, making legislative changes if needed in order to make progress.
That we start to tackle the social housing waiting list – presently c.120,000 households.
That we continue through with urban regeneration schemes, including trying to get some PPPs back up and functioning, and we re-fit and upgrade sub-standard social housing.
That we make significant progress in tackling the issue of homelessness.
That we make much more progress on producing good housing data across a range of key performance indicators – including house prices – but also commercial property (for which we have no data except that generated by the property sector).
That we take advantage of the opportunities for long term land-banking given the land holdings in NAMA and the DEHLG land aggregation scheme. We should not sell sites that know we will need in the future for schools and other public facilities back to the private sector at the bottom of the market and then have to buy them back in 8-10 years time for several times the sale price.
That we introduce mechanisms to stop the hoarding of zoned development land, so that it is used in an orderly process.
That the National Spatial Strategy continues to be a key organizing framework for a revised National Development Plan and that coordination with the Regional Development Strategy in the North continues.
A change of government is always a time of opportunity to take a fresh and revitalised approach to issues. The appointment of a Minister of State for Housing and Planning is a welcome development. The Minister faces many pressing challenges and hopefully he’ll start to make good in-roads into them at the same time as improving and strengthening our housing provision and planning system.
Rob Kitchin
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November 12, 2013
A road map for planning, development, construction and related job creation in Ireland
Posted by irelandafternama under #Commentaries | Tags: construction, development, employment, housing, Ireland, jobs, MTES, NDP, NSS, property, strategy |[6] Comments
Many of the posts on this blog have been critiques of the planning system, the construction sector/developers, the banking sector, and government policy or lack of. A critique of the blog is that it doesn’t do enough to put forward solutions and a positive path forward, especially given widespread unemployment amongst former construction workers and development residing at the bottom of a deep slump rather than being a productive part of the economy.
In this context, a key challenge for Ireland is to re-grow the construction sector back to a normal, sustainable level as a productive part of the economy and to get construction workers back to work without exacerbating existing issues and problems with respect to property. This is no easy task, but here is my suggested road map.
First, any attempt to resurrect construction activity in Ireland has to take place within a strategic approach to planning and property that strongly guides any development takes place. The adoption of core strategies and revisions to the Planning Act are a step in the right direction, but are specific tactics, not strategic visions.
To this end, the government needs to put in place a strategic planning and development framework that combines spatial planning (what used to be the National Spatial Strategy, NSS) and sectoral planning (what used to be the National Development Plan, NDP). The present NDP expires end of 2013; the NSS is hollow and in review. The proposed Medium-Term Economic Strategy (MTES) 2014 to 2020 will focus on macroeconomic strategy and policy actions for achieving sustainable economic and employment growth, not planning and development. The MTES needs to be complemented with a new NDP to run 2014-2020 to guide investment, underpinned by a NSS that will ensure coordination across sectors and locales. In other words, it should consist of joined-up thinking. The danger is that without a strategic approach, the development that does occur will be ad hoc, poorly linked, weakly leveraged and will slow recovery.
Both the new NDP and NSS need to be based on an evidence-informed analysis of the present state of property (housing, office, industrial, agricultural, etc), planning/zoning, and models of projected demand based on demographics, economic growth, labour market demand, etc. This requires decent property data (we have some limited housing data; no independent commercial sector data) that have temporal and spatial resolution.
This strategic framework needs to be prepared to be selective. Rather than trying to encourage growth everywhere, it should aim to grow selectively to create agglomerations and critical mass. Agglomeration is important for growing jobs and the economy. Employ a smart consolidation approach elsewhere (focus on quality of life and sustainability, rather than growth). Limit further one-off housing: it is unsustainable in service terms (utility and service provision) and environmentally (water pollution, commuting, etc) and contra to popular belief evidence suggests weakens rural communities.
Part of the strategic framework should focus specifically on housing and produce a comprehensive housing strategy. As well as planning for the future, this strategy needs to address all the issues affecting housing at present:
Development needs to follow best practice planning principles and should be integrated in nature. Residential development cannot be simply houses but also needs to be utilities, schools, creches, public transport, etc. Piecemeal planning undermines formation of sustainable communities. When housing construction occurs, all the other elements also need to occur at the same time (not several years later).
Second, the creation and delivery of any strategic plan needs to be properly resourced in terms of staffing and finance.
Proper planning requires administrative units capable of delivering: the Department of Environment is severely understaffed with respect to planning; regional planning authorities are shells; local planning authorities are emasculated; NAMA should be part of this coalition.
Development requires finance — there is a need to source investment capital given the Irish banks are not lending. NAMA should fill the void where possible. If there is true demand the market does not need stimulating and tax incentives/subsidies should be avoided. The construction/development sector needs access to finance through loans not incentives. Do not sacrifice measures such as Part V Social and Affordable Housing provisions of the Planning Act (we need social and affordable housing).
Third, we need new entrants into the sector to replace failed enterprises.
Encourage new developers through loans/grants — many of the older ones are bust, tied up in legal cases, or cannot access investment capital. We need new entrepreneurs to enter the market who have fresh ideas and energy and do not have any of the bad habits and institutional memory of the old set.
Encourage new, large rental companies into the market and professionalize the rental sector. The rental sector is under-regulated and is dominated by amateur landlords (70% own 1 or 2 properties). Encourage cooperative and association housing and make finance available to them for new projects.
Specific ideas to re-grow the construction sector back to a normal, sustainable level and to get construction workers back to work
Invest in capital projects that will stimulate the economy beyond construction jobs (i.e. will provide the conditions that will attract inward investment and indigenous growth) — public transport, utilities (electricity grid, water system, broadband), public infrastructure (e.g. school building — 1 in 3 schools still have prefabs and the number of children is growing; hospitals; universities, etc), selective road building, etc.
Proactively address the housing issues detailed above. (1) complete viable unfinished estates and deconstruct the others; (2) address build quality and pyrite-infected homes; (3) restart regeneration projects and revive PPPs with new partners; (4) refurbish existing social housing.
Enable private housing in very select locations where there is a demonstrated demand/projected demand based on hard evidence.
Enable office development in very select locations where there is a demonstrated demand/projected demand based on hard evidence (remember >20% of office space in Dublin is vacant; in some parts >40%; similarly lots of empty retail/industrial space in Dublin and throughout the country).
Curtail speculative development of all kinds where there is no demonstrated need/demand. Under no circumstances create additional supply in areas where there is already oversupply as it will flat-line any recovery and extend related problems.
I am open to suggestions and debate with respect to this road map. We need these kinds of conversations. What I do not think is sensible is to have no strategy and plan and to simply try and muddle through and hope that inaction and the present lack of policies and direction will somehow solve our various issues. They won’t; they are more likely to cause additional problems.
Rob Kitchin
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