Weak planning system becoming a big headache for Government

An efficient planning system is supposed to regulate development and ensure it delivers the supply required in a manner that is in line with national policy. It is manifestly clear that the State’s current system is doing anything but.

Data from the Central Statistics Office (CSO) on Friday noted that the number of homes that secured planning permission in the second three months of 2023 was down a headline-grabbing 23 per cent on the same time last year.

The CSO cautions against extrapolating long-term trends from single quarterly reports. That’s entirely reasonable. And a look at the first half of the year shows that permissions are actually 3 per cent ahead of last year, thanks to a bullish first quarter.

However, it is also true that planning permissions so far this year are still running behind pre-pandemic levels, at a time when the shortage of supply is becoming ever more acute.

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And it is not just residential development. On Thursday, Aldi published a report on the impact of planning delays on local communities. It was certainly self-serving but, having been compiled by DCU economics professor Anthony Foley, there was rigour in the methodology.

The report found that consumers in areas where applications by Aldi to open new stores had been delayed were paying €78,333 a month more than they would have done if the stores had been there.

Looking at 16 applications over the five years to end-2022, the report cited delays of up to 91 weeks beyond the statutory 18-week window in which An Bord Pleanála is supposed to rule on applications and appeals – at a calculated cost to consumers of just under €10 million.

On the other side of the equation, suppliers – including 300 Irish suppliers to the group – are out of pocket by €1.7 million a month, or €103 million over the past five years, as a result of the delays, the report found. That’s a lot of economic activity in local communities.

[ Homes approved for planning permission down 23% in second quarter ]

Planning was also to the fore in the Society of Chartered Surveyors Ireland’s pre-budget submission to Government this week. And last week, my colleague John FitzGerald noted that weaknesses in the system were hobbling the Government in managing their two largest challenges – housing and climate change.

The bottom line is that it is impossible to hear a good word from anyone right now about Ireland’s planning structures. Putting properly resourced structures in place would appear to be a long-overdue first step for a Government facing the electorate within the next 18 months.