Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses(Questions 300-310)

MR TONY MCNULTY AND MR MICHAEL BACH

TUESDAY 17 DECEMBER 2002

Chairman

  300. It disappointed you.
  (Mr McNulty) Yes, that is exactly the word.

Dr Pugh

  301. Do you have any evidence of regional planning influencing the development of clusters?
  (Mr McNulty) The evidence is patchy thus far. The notion of further development of clusters is an area that we would actively encourage, not just in the Bill but subsequently.
  (Mr Bach) If I can give you some of the evidence from our research. Planning was not an impediment to clusters but it did not actually actively help them. Other issues other than planning were much more important, like the availability of skilled labour. The planning system has not been unresponsive but what it has not done is positively promote those clusters. Things like business planning zones will be an opportunity for doing that.

  302. Inward investment, has that been decisively effected by planning, do you have any evidence to that effect or does it happen anyway when it is going to happen due to market tendencies?
  (Mr McNulty) Part of the complexity of all this is almost unpeeling the onion and seeing where the planning process impedes or assists and where it is down to an enlightened RDA chair or an enlightened county council leader. In terms of substantive evidence I would have thought in one sense that the planning process is the second stage on from what initially attracts people to invest in a particular area.

  303. Have you not attracted occasions where some policy has been revised and almost immediately there has been a flood of inward investment bottled up waiting to get in there?
  (Mr McNulty) I can think of such examples but they are not terribly useful ones. My background is overwhelmingly Irish and every now and then I go over to Ireland and see empty IDA sheds all over the place as a consequence of fiscal breaks and rapid changes to the planning process to assist this inward investment that disappear like grains of sand five years later when the tax regime runs out. The interaction between what the RDAs do in economic development, the regional planning framework, the regional political leadership and the regional economic activity are all crucially important. How to unpick them and how useful that is I am not sure.

  304. Would it be fair to say that it is easier to track some of the negative effects of planning, keeping development out rather than planning bringing development in?
  (Mr McNulty) As Michael has said, we have fairly significant evidence from the trawl we have done. At best the plan is not an impediment but at worst it is fairly neutral. Back to Mr O'Brien's point about, yes moving forward in terms of being proactive and working with the RDAs in economic development to assist inward investment and all those elements while still holding the ring in terms of a balance between a fair land use of development control system, the communities, the consequences for them and the attraction of economic activity and everything else.

Mr Clelland

  305. What has been done about the problem of regions and local authorities competing with each other for new business investment in their area and all the dangers of driving down standards?
  (Mr McNulty) Part of that process with the new Bill is the Regional Spacial Strategy, which I know is a clumsy title but it is meant to be all embracing in terms of picking up and identifying far more than simply land use and development control but about infrastructure and so much more which will almost predefine and compliment the local development frameworks from the other end of the process and where key aspects of development should be in any particular region. That is not going to pre-empt or stop in the end that almost mutually assured destructive nature of some of the intense competition but it will assist the process and get us to a stage where people are not taking a step back and taking that broader regional view. That needs to be seen in the context of a lot of the other development will happen at a local level. It sounds mundane but the development and the review of much of what we are doing on the planning policy guidance will work with that process, not least in terms of where some of the things I have seen, where there is this kind of cut-throat competition for things like out of town retail, near out of town or the next town, or whatever else. The assorted PPGs will deal with that as readily as the RSSs

  306. You mention the RSSs, in the Committee on Planning Green Paper we recommended that RSSs should take precedent over all other regional strategies. In its response the Government did not seem to go along with that, why was that?
  (Mr McNulty) I think we need to get them in place first. I think a question from Dr Pugh earlier, ultimately—and it is not for me to rewrite the Bill on the day of the second reading—these things are organic and I would suspect not too long down the line not only will all of these regional activities be interwoven and interacted but I think the RSSs will end up predominating and getting broader in terms of what they do. They are intended to be fairly all incumbent and far more than simply local plans. They are pretty all-incumbent documents already and they will lead the process. The RPPs will work very closely with the RDAs and other regional authorities, some elected and some not subsequently, to drive the process forward in terms of a planning regime, an economic development regime and broader strategies for each week.

Chairman

  307. Do you have any comments on the literary review that Roger Tym did for us?
  (Mr McNulty) I thought it was very good.

  308. That is excellent, you do not need to go any further.
  (Mr McNulty) It sat very readily with much of the research that we had already done. What was most interesting from our point of view was there was nothing stark that stood out from his conclusions that jarred in any sense with our conclusions, not just from the research but from the broad interaction we have had with consultees on the planning Green Paper. It was very useful in that sense.

  309. There does seem to be a lack of research on the benefits of planning. Has the Department any plans to do any research in this area?
  (Mr McNulty) In one sense that is right, but in one sense it is a tad unkind in a sense that every time we review a PPG or a PPS there is in that particular slither of that particular area a goodly body of research underpinning it. I could wax lyrical but shout about the huge body of research that has gone into the development of PPG 23 by Lester Hicks on waste, minerals and general extraction. It is a huge and very definitive seminal piece of work in that area, which I will happily send copies of, and the research to the Committee. In terms of the initial development and the subsequent development of PPG 3 on housing and PPG 6 there has been a huge body of research underpinning those that do summarise the benefits, or otherwise, of the prior regime and what may need to change. Taking a step back and saying, in a global sense has that happened? I think one of the things the paper did show was the pro-active, which it clearly showed, as well as the porosity of sustaining evidence to say that the anecdotal planning is terrible, it is an impediment and we will all be running off into sunny uplands with twice the growth rate we got if it was not for the planning system.

  310. We will look forward to that Christmas reading. Meanwhile can we let you escape to go back to the Department to peel the onion? I did not realise it was quite that difficult in your Department.

  (Mr McNulty) At least we found the onion!

  Chairman: On that note thank you very much indeed


 
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