The High Court has been told the Government intends to replace the proposed new planning guidelines for apartments with a draft national planning statement and to carry out an environmental assessment.
The development came as part of a challenge against the proposed guidelines, issued last July, taken by local councillors Darragh Moriarty of the Labour Party; Green Party councillors David Healy and Dan Boyle; Independent councillor Padraig McEvoy; as well as journalist, Frank McDonald.
They argued that Minister for Housing James Browne had breached legislation by failing to carry out a Strategic Enivronmental Assessment of the guidelines.
They said the new guidelines would lead to darker and more cramped apartments with less storage space.
The matter was due before the High Court this morning for mention pending a hearing next month. The court heard the plaintiffs had received a letter from the Chief State Solicitor on behalf of the Government.
In the letter, Maria Browne said there was a possibility that the court would need to refer the matter to the Court of Justice of the European Union and that the final outcome of the case was likely to be the subject of an appeal.
She said the existence of the legal proceedings created uncertainty that would delay the delivery of "much needed housing" and the Government had therefore decided to take a "pragmatic approach".
The letter sets out that the minister has decided to prepare a draft National Planning Statement under 2024 legislation, which has recently come into force, to replace the proposed guidelines.
Ms Browne said the minister also proposed to carry out an environmental assessment "as a precautionary approach". She said this was without prejudice as to whether such an assessment was required.
Ms Browne said the Government would continue to fully defend the legal proceedings on the basis that the original guidelines were lawfully issued.
A Government source said it had not changed its position and would continue to robustly defend the legal challenge. They said it remained the Government view that the July guidelines were "operational, lawful and a critical component of improved viability".
