RTPI NI's response to the Developer Contributions for Wastewater Infrastructure – Department for Infrastructure

This consultation sought views on whether and, if so, how the Department for Infrastructure (DfI) should introduce developer contributions to help fund the wastewater infrastructure improvements needed to unlock housing development constraints and enable more homes to be built.

Q1. Do you agree with the principle that a pathway for developer contributions should be introduced in Northern Ireland?

Strongly agree

Q2. Referring to Section 4 of the consultation report, which option do you think would be the best pathway?

Both Option 1 and 2

It makes sense that the option for developers to voluntarily contribute to upgrading or replacing wastewater infrastructure that benefits them could be introduced in the short-term. This is actually already happening in some areas, to facilitate home building, and therefore would formalise a practice which is already deemed appropriate. Meanwhile, the longer-term process of designing and consulting on the specifics of a compulsory levy could be undertaken. An agreed system and process to deal with the issue, such as the compulsory levy, would go some way to providing more clarity and certainty to all stakeholders.

Q3. If voluntary developer contributions are introduced how should these be made?

Upfront payment

An upfront payment has less risk attached. As noted in the consultation document (page 23), with a bond arrangement, what would happen if a developer defaulted or became bankrupt and the infrastructure they put in place is not of an adoptable standard?

Q4. If voluntary developer contributions are introduced, do you agree that there should be a reimbursement scheme?

Agree

Without a reimbursement scheme, developers may be put off building in a certain location if they perceive that their initial investment will benefit competitors in future. A reimbursement scheme would make the process more fair.

Q5. What are your views on how a compulsory levy should be introduced? You might want to tell us about what factors you think should be taken into consideration in designing the levy process, such as whether there should be an exemption or reduction scheme introduced, how the amount of the levy might be calculated, what that amount should be and how you think it should operate.

RTPI Northern Ireland recognises that the introduction of a compulsory levy can add delay and complexity to the planning approvals process. For instance, the introduction of the Community Infrastructure Levy in England has proven highly complex, resulting in a system that is difficult to interpret, costly to operate, and uncertain in implementation. The RTPI notes that expanding exemptions and reduction schemes there have added administrative burden and complexity. Indeed, since 2016, the CIL regulations have been amended six times in England, as a result of a range of technical issues experienced by local authorities and developers alongside national policy changes. Therefore, any move to implement a compulsory levy in Northern Ireland will need to take account of a number of factors.

Firstly, a new requirement for developer funding will require extra resources and training for key actors in the planning process, including NI Water, the local planning authority, and even in the developer team. RTPI NI recommends that additional resources, training, and support for stakeholders be identified in advance of any further reform to ensure a smoother transition. This is particularly important given the context of significant cuts to various departments.

Secondly, the best opportunity for setting out strategic opportunities and constraints in wastewater infrastructure is through the plan-making process, namely the Local Development Plans. Local Development Plans are a significant opportunity to provide an integrated place-based approach. These are at various stages across the local authorities in Northern Ireland, due to many factors, including lack of resource in key stakeholder organisations such as the PAC and under-resourcing of LDP teams producing evidence bases and viability assessments. Managing development contributions through plan preparation more effectively will be key if we want to reduce the burden of viability assessments required at the application stage, speed up the planning process, and increase certainty for applicants and planning authorities.

Thirdly, harnessing digital planning innovations is key to better ensure evidence bases are up to date and robust in a drive towards greater standards of consistency. NI Water has a database showing areas with wastewater capacity constraints, but could this be expanded to show the level of funding required and received, to better ensure development contributions are collected and spent efficiently and effectively? It could also overlay areas of growth zoned in emerging LDPs to ensure a coordinated and forward-looking approach to infrastructure planning.

Whilst upskilling our workforce, innovations from digital planning and careful reform of the developer contributions system will go some way to improving funding for wastewater treatment and unlocking development, it cannot be done without addressing the general resourcing crisis our planning departments are experiencing. A well-resourced, plan-led, positive planning service offers an established and effective process to support a sustainable future for Northern Ireland. However, the service is under severe pressure and scrutiny, with specialist resources and skills under particular strain. It is critically important that the planning service is suitably resourced and planners receive the appropriate training and empowerment to make holistic decisions. Decision-making on planning issues should be made within the planning system as often as possible. RTPI NI believes that there is under resourcing and underfunding of the planning service which often results in planning staff being unable to meet the current demands placed upon them. Therefore, developer contributions for wastewater treatment will mean nothing if the planning departments are not adequately resourced to process planning applications in a timely manner. The system must have the resources it requires.