COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, September 10, 2012

HEADED ITEM NO. 11

DRAFT GUIDANCE ON PREPARATION AND ADOPTION OF DEVELOPMENT CONTRIBUTION SCHEMES - Final Date for Submissions Friday 14/9/2012

REPLY:

General guidance on the drafting, adoption, application and collection of Development Contributions is welcomed. Members will be aware of the ongoing work of an SPC working Group on a new DCS for South Dublin County. The Scheme is the subject of a separate report to this meeting.

In relation to the Draft Guidelines there are a number of issues set out below that members may wish to consider before submitting a response to the Department,  (if any).

• The Circular is silent on the issue of the significant reduction and uncertainty in relation to funding for infrastructural projects.  Accordingly, clarification on the primary function and objectives of development contribution schemes would be helpful prior to the implementation of new detailed policy and practices.  The legislation clearly intends the contribution scheme primarily as a funding mechanism, therefore it is difficult to achieve multiple competing objectives, such as maximising capital income, incentivising development in strategic/preferred zones and incentivising employment intensive development.  
• Given that the adoption of a contributions scheme is a reserved function, parts of these draft guidelines could be interpreted as prescriptive and could be perceived to undermine the statutory powers of the elected members, particularly in the use of the terms “should” and “required”.
• There is no process for “amending” a Scheme. The current process of adopting Development Contribution Schemes is set out in the Act, Circulars and in this document in detail in Chapter 3 items 1-7. In light of the scale of research and resources required to meet these statutory requirements, clarity is required, sooner rather than later, as to the future possible use of funds from water charges, household charges and property taxation to fund capital expenditure by local authorities. These matters will have a very significant impact on the determination of appropriate rates for all schemes nationally.  It is respectfully suggested that this changing funding environment reinforces the requirement for a fundamental review of capital funding mechanisms.  
• It is considered that the wide ranging suggested incentives will impact on potential income. It may prove difficult, if not impossible, to “ensure that any reductions in those contributions can be adequately covered by increased contributions in the remaining areas” 
• In relation to project lists in Schemes the phrasing in the guidelines appears to be somewhat prescriptive. The project lists contained in development contribution schemes are indicative, and are not intended to be exhaustive or exclusive. The scheme must be adaptable to changing objectives and requirements