IPI Submission on Amendments to the NAMA Act - May 2010
Tuesday, May 25, 2010
Below is the text of the submission made by Gerry Sheeran, IPI President to the new Planning Advisory Committee of NAMA
Dear Mr Proctor,
Thank you for your letter of 5th May inviting me, on behalf of the IPI, to make a submission on planning, land use and related matters which might assist the Planning Advisory Committee in advising the Board of NAMA.
NAMA will acquire a loan portfolio of €81 billion. Of these prospective assets. 43% is land and another 26% is development (partly complete) and 6% of NAMA’s assets are in Northern Ireland which is also of interest to the IPI as an all island institution. Even if only part of the loan portfolio will ultimately be acquired in the form of property by NAMA, it will still be by far the largest land and property agency in the Country and it is State owned.
In the aftermath of the economic boom, we are at the most critical juncture in the history of the country. It forces us to look to a vision of our society in future generations and it is essential that proper planning and sustainable development and the common good should inform this vision. These should be an integral part of NAMA’s approach to development.
IPI submissions and Amendments to the NAMA Act
The Irish Planning Institute made a submission on the NAMA Bill to the Minister for Finance on the 10th September, 2009, part of which stated “Land banks should be developed so that people can live, work and have access to recreation which enhances their quality of life, particularly in terms of improved and diverse living environments with easy access to work, school and shopping and good public transport links with the ability to walk and cycle. Social and recreational infrastructure should be provided in tandem with residential development, including schools, healthcare, community facilities, parks and playing fields. Social integration in housing, schools and amenities is critical.”
Minister Lenihan in his second stage reading of the Bill on 16th September, 2009, stated:
“Within the legal boundaries that NAMA must operate, and notwithstanding its commercial remit, NAMA could have a role in creating balanced and desirable places to live with obvious benefits for sustainable social values. NAMA could seek to facilitate the Department of Education & Science and the Department of Environment, Heritage & Local Government where these bodies have requirements, for example, such as schools, parks and so on, which facilitate the creation of desirable development which encourage vibrant sustainable communities. Such bodies can be given first option on disposals for a limited period and though they would have to pay the reasonable market price required they would have at least be given the first mover advantage. These bodies have sometimes have been held to ransom and have to pay inflated prices for projects such as school extensions and playgrounds.”
At the Committee stage of the NAMA Bill on the 27th October, 2009, Minister Lenihan also stated to the Dail;
“There were certain social policies and purposes which could be effected through the NAMA legislation” and ” NAMA could facilitate the various Government Departments on site acquisitions for schools, parks, health centres and hospitals and all of that facilitates the creation of desirable developments and encourages sustainable communities.”
Statements supporting the inclusion of social and community objectives in NAMA were also made by the Taoiseach and by the Minister for Environment at this time. Subsequently, the NAMA Bill was amended and the NAMA Act now contains a critical new subsection under section 2 ( which of course Section 10 relates back to) headed ” Purposes of this Act” which states:
“(viii) to contribute to the social and economic development of the State”
On the 30th October, 2009 the IPI made a further submission to Minister Lenihan requesting that the Bill be amended by adding to a number of Sections, including Section 12, the following: “and have regard to the proper planning and sustainable development of the area in the interests of the common good”. Subsequently, a new Section 12(8) was added and the Act now states:
” In exercise of its powers under paragraphs (s), (z), (ab) and (ac) of Section 2, NAMA shall have regard to proper planning and sustainable development as expressed by Government policy and in any relevant regional planning guidelines (within the meaning of the Planning and Development Act 2000) and development plans (within the meaning of that Act) “
NAMA and its Planning and Social Role
It is clear that the Government now recognises, for the future of Irish society, that NAMA’s role needs to be more holistic than just to “obtain the best financial return to the State” and is concerned with planning and social issues. The DEHLG on 9th April 2010 issued Circular SHIP2010/9 which included the following paragraph under the heading NAMA:
“The information supplied by each local authority in respect of the land survey, will be combined in order to engage with NAMA with a view to maximising the value of lands owned or controlled by the state ensuring optimal use from a planning and “social dividend” perspective.”
NAMA in the development of lands or in making or intervening in planning applications [Section 10(z)], should not act as a private developer but as a State Agency - which it is - closely guided by the plans listed above and by the 28 Planning Guidance documents issued by the DEHLG and in particular; Sustainable Residential Development in Urban Areas, 2009 and Provision of Schools and the Planning System, 2008. NAMA presents an opportunity to obtain land in the control of the State which from a planning perspective has the advantage of facilitating an evidence based and “plan led” rather than a “developer led” approach. Indeed good planning can increase the value of land (by achieving a better use mix or by providing public infrastructure such as public transport) or can ensure the provision of social infrastructure (schools, community facilities, parks and social housing) in a timely and coherent fashion. The Institute is concerned that pressure be resisted to develop land solely on the basis of economic return to the exclusion of the common good and the proper planning and sustainable development of the area.
NAMA must ensure that good planning, which will facilitate the creation of vibrant, sustainable communities, is core to the future development of its massive land portfolio in order to protect and enhance the quality of life for future generations.
Yours sincerely,
Gerry Sheeran,
President, IPI