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Dublin Live
Dublin Live
National
Dan Grennan

Government plan to scrap development levies which fund councils slammed

Plans to temporarily waive residential development levies in order to cut the cost of housing for developers has been slammed by a Sinn Fein Councillor.

Housing Minister Darragh O'Brien is reportedly planning to introduce the measure as part of a package of changes aimed at speeding up the delivery of housing. A memo on the measures is being prepared for Tuesday's Cabinet meeting, the Irish Examiner reports.

Developers could save thousands of euro in tax paid to the local authority if the measure is enacted. The funds are used by councils to build infrastructure and amenities.

Read more: Fire in historic city centre flats leaves tenants temporarily homeless and belongings destroyed

The suspension of the development levies could last three years and conditions such as construction beginning this year and finishing in three are expected to be applied. The measure would cut costs of building which developers claim has sky rocketed in recent years.

However, Sinn Fein Councillor Daithi Doolan called the plans "ill thought out". He said: "Sinn Fein are deeply concerned that the scrapping of development levies will lead to a serious loss of revenue for Dublin.

"The Government must take a step back from this ill thought out proposal. Scrapping development levies will have a marginal effect on the cost of houses.

"It will only amount to a reduction of €10,000 to the cost of an average Dublin home. This is yet another knee jerk reaction from a directionless Government.

"The Government must immediately clarify if local authorities will be compensated for this cut to council funding. Dublin City Council's capital budget of €2.4b covers housing, roads, environment protection and culture.

He added: "Levies provide 9.3% of this budget. Losing this income will prevent the council from carrying out essential works already agreed by Dublin City Council.

"This Government has utterly failed to tackle the causes and consequences of the housing crisis. The proposal to scrap development levies is more evidence of a desperate Government bankrupt of any real housing policies "

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