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Irish Times
4 days ago
- Business
- Irish Times
There is a way to unblock Ireland's infrastructural logjam
Listening to Sean O'Driscoll, chairman of the Economic and Social Research Institute (ESRI), and member of the Government's infrastructure taskforce, interviewed recently raised my hopes for a dawning realisation at Government level of the infrastructural crisis we face. Our administrative and legal procedures simply cannot overcome or unlock the logjam in time to prevent very serious damage to the Irish economy and Irish society. O'Driscoll, a very experienced private sector chief executive, spoke plainly and truthfully about a number of issues including capital spending cutbacks. He observed that the Irish planning process had developed from a two-tier system involving local planning authorities and an appeal board process, to a three-tier one encompassing a veritable legal industry grounded on judicial review . I would go much farther than O'Driscoll in predicting the crisis for economic infrastructure. The recently enacted Planning and Development Act redesignating An Bord Pleanála as An Comisiún Pleanala – the largest-by-volume enactment ever made by the Oireachtas – will compound rather than mitigate our disastrous planning process and Government's dismal record. The new commission is to be chaired by Paul Reid, formerly head of Fingal County Council and of the Health Service Executive. Frankly, it really doesn't matter who stands on the bridge of the new planning commission that increasingly resembles a governmental RMS Titanic. The commission, as I have written here , is to be a single competent agency to decide on appeal matters as trivial as whether a bin shelter can be constructed in a front garden or the height of an extension to a family home. At the same time it could rule on decisions as far reaching as whether Metrolink should be built; whether offshore wind farms should be permitted in the Atlantic; all major State and local authority compulsory purchase orders; the number of flights to be allowed into Dublin Airport; whether a Shannon-Dublin water supply project or new Cork-Limerick motorway should be allowed to proceed. READ MORE What is it about Ireland that all of these massively different functions are vested in a single non-governmental agency? How is it hoped that such a vast range of powers and functions can be exercised by a single body entirely free from the curse of lengthy judicial review proceedings? There is another way. Challenges to legislation enacted by the Oireachtas, as distinct from decisions made by non-governmental agencies including the planning commission, are far less likely to be brought or to succeed. The Victorian model of having the legislature authorise major infrastructural development by statute is the answer – subject to modification to take account of EU legal requirements. When the fledgling Irish Free State determined to harness the Shannon's hydroelectric potential, it enacted, even before the establishment of the ESB, a law in 1925 providing for the construction at Ardnacrusha. This law also provided for the canals involved, the compulsory purchase of land and legal interests affected, and State financing of what was then a massive piece of national infrastructure. [ Ardnacrusha at 100: What could happen if Ireland showed similar ambition today and invested 20% of national budget in energy? Opens in new window ] For 30 years, the construction of a Shannon-Dublin water supply scheme has been acknowledged as necessary at Government level. But nothing has happened. Uisce Éireann believes the project might take 10 more years for completion, even if it was given the Government's green light today. Why not, instead, pass a 'Shannon-Dublin Water Supply Scheme Act'? It would have the following features: the promoter, Uisce Éireann, would submit detailed plans, including compulsory acquisition of wayleaves and other land. It would set out environmental impact assessments required by European law. Receipt and consideration of any third-party submissions would be completed by a select committee of the Oireachtas and the committee would authorise the works, as varied or approved, to be completed. Subsequent challenge to the construction of the project would face the hurdle of proving the unconstitutionality of the measure. Judicial review would simply not arise. The government of the day could kick-start and see through to completion major infrastructural projects if this model, like Victorian legislative infrastructural projects, were adopted. The same could apply to the national power grid, major sewage disposal facilities and major rail projects. The legislative option incorporating such approval could even address passenger numbers at Dublin Airport . Only a handful of Senators opposed central features of the Planning and Development Act, which has created monstrous new planning legal processes centred on the new planning commission, along with national development policies and guidelines, and the wholly unnecessary Office of the Planning Regulator . Far from being an answer to the coming crisis identified by O'Driscoll, the 2024 Act is a charter for its continuation. It is a recipe for ongoing failure, even with its legally flimsy restriction on future judicial reviews. If the Government's infrastructural taskforce doesn't understand this, it too will fail.
Irish Independent
4 days ago
- Business
- Irish Independent
Students in private rentals to receive no extra protections under new RPZ rules, Housing Minister says
As legislation is set to be rushed through the Dáil this week to bring all current tenancies into a Rent Pressure Zone (RPZ), concerns have been raised about the new rent rules that are due to come into force next March. Tenancies after that date will be subject to a six-year tenancy agreement and landlords will be allowed to reset rents to market rates after six years. If during those six years, a tenant leaves their rental accommodation voluntarily, the landlord will also be allowed reset the rent. However, concerns have been raised in relation to students who rent for a limited period of time for the academic year and for trainee doctors who regularly move around the country. Those groups could be subject to hikes in rent on a regular basis. Mr Browne said that while measures would be looked at for student-specific accommodation, measures for students in the private market would not be introduced. 'We're working out issues around students while working over the bill,' Mr Browne said. 'However, in the private rental sector, as it is at the moment, there won't be any special measures put in, in terms of the private rental sector, it would become impossible to police or to manage in those circumstances.' The minister said it would be difficult to determine whether someone was a student and then work that into legislation. 'There's always challenges like that; students, nurses, gardaí, doctors, consultants. So, there will be no special exemptions in current law for people in that particular situation, and won't be under the new legislation either, as drafted,' he said. Mr Browne also confirmed former HSE chief Paul Reid would be paid €50,000 a year as chair of the new planing authority, An Coimisiún Pleanála. The new body will replace An Bord Pleanála and will be expected to work towards new timelines for applications. ADVERTISEMENT Meanwhile, a judicial review into a development at the old site of the Central Mental hospital in Dundrum, Co Dublin, has added €30m to the cost of the scheme and delayed the project by at least two years. In May 2023, the Land Development Agency (LDA) was granted permission to develop the site for the construction of 852 homes on the 34-acre site. However, the scheme was delayed because of a single objector who lodged a judicial review against An Bord Pleanála for granting permission. Representatives from the LDA and the Housing Agency told the Oireachtas Housing Committee that last September, the LDA submitted updated plans for the site, which will be renamed Dublin Central, for the construction of nearly 1,000 homes. The new plans would include 940 apartments, 17 duplexes and 20 houses, with building heights ranging from two to seven storeys. Asked by Fianna Fáil TD Seamus McGrath how much the judicial review on the site has cost, LDA chief executive John Coleman said the delay has resulted in €30m in additional delivery costs. 'The impact of the delay, of the challenge, has been to add at least €30m onto the estimated delivery cost of that scheme,' Mr Coleman told the committee. He said that the matter was not yet concluded, and they are waiting on a final decision on the planning application. He added that he hoped a final decision would be received in the coming months. Chief executive of the Housing Agency Martin Whelan told the committee that there has been a 'near collapse' of inward investment in the housing market. In particular, he said the requirements around equity financing are a 'major challenge'. Currently, builders are required to pay 25pc to 30pc of the cost of a development upfront. This money is then held up for several years until the development is completed or sold. 'It's a particular challenge given that there is a higher equity requirement in relation to apartment development, and the shortage of that financing is an issue,' Mr Whelan said. The Government will pay €148.2m to buy the hotel at Citywest, which includes the convention centre, it was also confirmed yesterday. The hotel will be used for housing international protection applicants. Currently, around 2,000 international protection applicants, as well as Ukrainian refugees, live at Citywest.
BreakingNews.ie
4 days ago
- Business
- BreakingNews.ie
Paul Reid to be paid €50,000 to chair overhauled planning body
Former HSE chief Paul Reid is to be paid a €50,000 salary to chair the State's overhauled planning authority, the Housing Minister said. The establishment of the new planning body was one of three housing proposals approved by Cabinet on Tuesday. Advertisement Mr Reid is to be the chairman of An Coimisiun Pleanala, which replaces An Bord Pleanala following allegations of conflicts of interest at the planning appeals body were raised in 2022. A senior Government spokesman said Mr Reid was approached for the role by Housing Minister James Browne after a six-month competitive process through the Public Appointment Service 'was ultimately successful'. The minister said the overhauled planning authority would be 'essential' and aim to provide more certain timelines for planning decisions. Mr Browne said it was 'the single most important agency' in the state that would require a 'hands-on role'. Advertisement He said he identified Mr Reid, who headed up the HSE during the Covid-19 pandemic, as someone with 'that governance experience, that management experience'. 'In terms of his salary, it would be 50,000 euro per year as chair of a board but Mr Reid would be expected to be very hands on, on an almost daily basis, engaging with the CEO, to ensure that this change of management happens as well with this new body.' He added that this does not include per diems and said he would have to check on allowances. The other six board members, who will take up their roles on Wednesday, barrister Peter Dennehy; former chief executive of the National Transport Authority Anne Graham; former director general of Law Society of Ireland Mary Keane; accountant Penelope Kenny; businessman Peter Madden and Michael Moriarty from the NGO sector. Advertisement The other two housing measures approved by Cabinet on Tuesday were emergency legislation to quickly introduce rent caps to a fifth of tenancies not already covered. Mr Browne said he expected that the extension of rent controls to be approved by the Oireachtas this week. 'I am confident we can get it done this week, I am in the hands of the Houses of the Oireachtas,' he said. He said they wanted greater uptake on the renters' credit outlined as part of previous budget measures. Advertisement Taoiseach Micheál Martin (left) and Paul Reid, then-CEO of the HSE, in 2021 (Brian Lawless/PA) The third measure was to expand the role of the Land Development Agency, including its geographical area of operation and to develop key public lands through infrastructure investment. He said different entities competing for limited land was 'a real problem' and so he would be writing to local authorities in three weeks to encourage them to 'significantly rezone land right across this country'. The housing and planning measures come a week after the Government announced a swathe of rent and tenancy reforms. Mr Browne, who admitted that rents in Ireland are 'way too high', said the measures would give renters 'greater certainty' and would attract new investment in rental accommodation. Advertisement They included the extension nationwide of the rent pressure zone (RPZ) system, areas of high demand where rent increases are capped at inflation or 2 per cent, whichever is lower. Rent increases in new developments will be capped only by inflation in an attempt to boost Ireland's apartment supply, Mr Browne said. Other rental reforms will kick in from March 1st, 2026: the offer of six-year-minimum rolling tenancies and a ban on no-fault evictions for large landlords, defined as having four or more tenancies. The opposition has criticised the proposals as 'a recipe for rocketing rents', particularly a measure that sees rents 'reset' to the market rate when a tenant voluntarily leaves a six-year-minimum tenancy. Meanwhile, the Department of Housing is engaging with multiple potential candidates for the 'housing czar' role at the top of the new Housing Activation Office. A joint-opposition motion on housing and homelessness, which will be voted on on Tuesday, calls for the introduction of a no-fault eviction ban and greater use of compulsory purchase orders to 'bring empty homes back into use'. The motion is being proposed by Sinn Féin, Labour, the Social Democrats, People Before Profit, the Green Party and Independents. A Raise The Roof protest will be held outside Leinster House at 6pm to coincide with the opposition motion.
The Journal
4 days ago
- Business
- The Journal
Paul Reid will receive €50k salary as head of new planning authority
FORMER HSE CHIEF Paul Reid will receive a salary of €50,000 in his new role as chairperson of An Coimisiún Pleanála, a new planning authority that will replace An Bord Pleanála. His appointment was approved by Cabinet this afternoon after Housing Minister James Browne brought a memo for information to establish the new body. Reid served as the Director General of the HSE from 2019 to 2022. He was chief executive of Fingal County Council from 2014 to 2019, and is a member of the board of Uisce Éireann. He also chaired the Citizens' Assembly on Drugs in 2023. An Coimisiún Pleanála is being established in line with the phased commencement of the Planning and Development Act 2024, which was approved by the Houses of the Oireachtas in October last year . The Act essentially allows for the restructuring of An Bord Pleanála. The reformed and renamed commission will have a new governing board and will be subject to statutory mandatory timelines to give confidence and certainty to applicants. Advertisement Speaking at a press conference this afternoon, the Housing Minister said the commission 'is probably the single most important agency we have in this State'. 'It decides not only housing and how quickly that can be delivered, but also our transport, our education and our hospitals,' he said. Asked how he came to appoint Reid as its new chairperson, Browne said he looked at the State agencies, particularly those under his own remit, and sought people who were on the boards 'who would fit that bill'. 'I identified Paul Reid as somebody having that governance experience, that management experience, because this is going to be a real hands-on role.' Browne confirmed that Reid would receive a salary of €50,000 per year as chairperson. He said he would 'have to check' whether he will also be entitled to allowances, but said 'I'm not aware that there is any'. 'Mr Reid will be expected to be very hands on on an almost daily basis, engaging with the CEO to ensure that this change of management happens as well with this huge body,' he said. In January of last year, Paul Mullan was appointed head of An Bord Pleanála for a term of seven years. It was expected that he would assume the role as head of An Coimisiún Pleanála. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Independent
5 days ago
- Business
- Irish Independent
Rush to bring whole country under new Rent Pressure Zones by end of week
Legislation to expand the zones under which rent increases are limited to 2pc, are expected to be signed off on by the Cabinet today, before being put to a Dáil vote as an emergency measure over the coming days. About 17pc of tenancies do not come under the current rules, which will be implemented 'at the earliest possible date' if passed by the Oireachtas. Meanwhile, the former chief executive of the HSE, Paul Reid, is to be named as the chairperson of the new planning body which will replace An Bord Pleanála. It is expected that his name will be brought to cabinet to be appointed as chair of An Coimisiún Pleanála. Mr Reid, who took over as head of the HSE in 2019, became a household name during the Covid-19 pandemic. He stepped down from the position in 2022 to spend more time with his family and with the belief that the HSE was 'entering a new phase and that the appointment of a new leader was now timely'. Memos going before the Cabinet tomorrow are to include the expansion of the remit of the Land Development Agency and changes to the Rent Pressure Zone system, which was agreed by the Cabinet last week. Housing Minister James Browne will bring a memo to the Cabinet to establish the new body to replace An Bord Pleanála, in a move to reset the organisation and its culture. As part of the establishment of An Coimisiún Pleanála there will be a number of changes, including a restructuring of the organisation as well as a new governing board, with Mr Reid as chairman. The body will be subject to statutory mandatory timelines, which will aim to give greater certainty to applicants. Learn more The board will also appoint a chief planning commissioner. The overhaul of the former planning commission is part of number of recent changes that have been brought to the Cabinet in recent weeks in relation to planning. This includes the ability of developers to seek extensions to planning permissions that were caught up in judicial reviews, and changes to planning exemptions to allow for modular units and granny flats to be built without permission. Meanwhile, designated cost rents from the Land Development Agency (LDA) are set to be exempt from corporation tax, under plans going to the Cabinet today. The Government is expected to sign off on plans to expand the remit of the LDA. Plans to change the agency's powers include amending legislation to allow for it to deliver increased levels of private housing. Changes will also allow for the increased acquisition of private land. Currently, the LDA focuses on building large developments in cities and towns including Dublin, Cork, Galway and Kildare. However, proposals going before the Cabinet will see housing delivery by the LDA expanded beyond where the agency currently operates. It will also consider strong land transfer powers to the LDA for public land that is owned by commercial state bodies. There will be a particular focus on 'underutilised' state lands.
