PROPERTY PRICES EXPECTED TO RISE AS LEVIES ARE INCREASED
CHIEF PLANNER STRESSES NEW LEVIES ARE NOT TO FUND BENCHMARKING FOR PUBLIC SERVANTS NOVEMBER 2003
PROPERTY prices throughout Louth are likely to soar with the introduction of increased development levies.
Local authorities are set to introduce new charges by next March which are to be earmarked for the development of infrastructure.
While members of Dundalk town council and Louth county council have yet to decide on the next level of charges, it appears first-time buyers and those building houses will have to fork out an additional €3,000 to €4,000.
In its Draft Development Contribution Scheme, Dundalk town council is seeking a €10,700 development charge on houses, an increase of €3,720 on the current figure.
While the setting of levies is now a reserved function for members to decide, they are told by officials at a monthly meeting that charges for an average house could go up from €6,980 to €9,950 for a 125sqm house, and €10,900 for a 220sqm house.
Levies on commercial and industrial developments are also set to increase. The town council is proposing €78.50 per sq metre and the county council is after €79.60 per sq metre.
Development charges relate to infrastructure such as roads, sewerage, water and community amenities.
Chief planner Gerry Duffy stresses that contrary to some media reports, the new levies are not to fund ‘ benchmarking’ for public service workers, but are being ring-fenced for infrastructure.
The proposed new levies would see the charge for roads increasing from €1,900 to €2,400 per house, water going up from €1,270 to €1,650 and sewerage up to €3,300 from €1,270. Surface water is being reduced by €20, to €1,250.
The charge for surface water wouldn’t apply to one-off houses in rural areas.
The community charge would also be increased from €1,270 to €1,300.
Cllr Declan Breathnach admits finding the charges hard to swallow. There is an election coming up and he accuses the Department of the Environment of being disingenuous in its timing.
Cllr Séamus Keelan complains that they have seen large development over the years, particularly in urban areas, yet no improvements have taken place on roads, lighting and footpaths. The money seems to be swallowed up in the local authority budget.
Cllr Peter Savage welcomes the fact that the development charges are now a function for the elected members rather than the executive.
He believes the increased levies would have a greater impact in rural areas where people don’t have a choice as to what type of house they can build.
The north Louth representative doesn’t believe the charges proposed should go on public display at this stage, rather be further debated by councillors.
Cllr Micheal O’Dowd believes the council is being asked to do the government’s dirty work by making additional charges for people who can’t afford them.
The bigger levies are described as exorbitant by Cllr Oliver Tully.
Chairman Cllr Nicky McCabe halts further debate, despite protestations from Cllr Tomás Sharkey, ahead of a special meeting on the matter.