Call for developers to invest in amenities
Developers should be forced to pay more towards the cost of local amenities, it was claimed today.
The Irish Planning Institute (IPI) called for an urgent revision of the system of contributions which is given towards schools, public water and sewage facilities, roads and footpaths, and public transport infrastructure.
IPI President Andrew Hind said the combined effect of Ireland’s planning and taxation systems is earning builders and land owners vast fortunes while many developments lack basic social and physical infrastructure.
He told the IPI’s National Planning Conference in Westport, Co Mayo, that while State and local authorities have to pay to remedy the problem, land owners and developers appear immersed in colossal one-off windfall profits.
“The problem we face today is that in most local authorities the revenue arising from development contributions is nothing like enough to pay for the level of infrastructure spending required in the area,” he said.
“In many ways the problem is a simple one: developers and landowners are not paying a large enough share of the cost of properly servicing their development with social as well as physical infrastructure.
“To cope with our growing population developers should be required to pay more towards the cost of providing schools, public water and sewage facilities, roads and footpaths and public transport infrastructure.”
The Construction Industry Federation (CIF) hit back at the calls and accused the planning institute of not understanding the cost pressures and competitiveness issues currently impacting the Irish economy.
Hubert Fitzpatrick, CIF Director of Housing, said the slowdown in the number of developments being started is threatening local authority revenues.
“It is obvious that this threat is the motivation for the IPI’s call for increased development contributions,” he said.
“Increasing development charges now will only further reduce development activity.”
Mr Fitzpatrick said development contribution receipts have increased by 300% since 2003 with the IPI proposals adding to already massive increases.
“The IPI knows that development contributions are meant to deal with real and identified deficiencies in local infrastructure in order to allow essential development to occur,” he added.
“Development contributions are not meant to be a tax on development in order to fund the provision of wider local infrastructure.”
Environment Minister John Gormley told the conference that the planning system has a pivotal role to play in achieving sustainability at local, regional and national level.
“From the Government’s perspective, we will continue to ensure that our planning system works to change the face of our cities and towns for the better,” he said.
“And that through it, we can add impetus to the creation of dynamic regions, cities and towns that provide a competitive and vibrant environment for enterprise, and a high quality of life that attracts people to live, work, visit and come together in them,” he added.
