Commentary on Sections Part 6: Compensation Section 179: Compensation where planning permission is revoked or modified
Section 179(1) transfers the functions under sections 26, 27 and of the Land Development Values (Compensation) Act 1965 (“the 1965 Act”) from the Department to councils on the day of transfer. This excludes certain functions which will be retained by the Department, namely setting the time within which the compensation claim is to be made (section 20(2) as applied by section 26(6)), the power to make regulations relating to the determination of the claim (section 23 as applied by section 27(3)) and compensation recovery (section 24 as applied by section 27(5)). Section 179(3) ensures that references to the Department in any relevant statutory instrument or provision passed before the transfer date will, so far as necessary for the purpose of the transfer of functions to councils, be construed as references to a council.
Sections 26 and 27 of the 1965 Act provide for the payment of compensation by a council when planning permission is revoked or modified.  Section 26(5) applies section 29 of the 1965 Act which makes provision for how compensation is measured in instances where it relates to new development or “Schedule 1 development”.  Schedule 1 development, so called because it is specified in Schedule 1 to the 1965 Act, includes a number of relatively minor types of development (more generally known as existing use) which might be expected to receive planning permission as a matter of course.  New development is development not specified in this schedule.  Section 26(6) applies section 22 specifying how compensation is to be paid.  Section 27 allows a council to apportion compensation between different parts of the land to which the claim relates and also to register details of the apportionment. Section 40 provides powers of entry for a council to carry out surveys or valuations in connection with a compensation claim.