Gordon Deegan
Clare County Council was yesterday accused by the Construction Industry Federation (CIF) of putting jobs at risk in Clare and the midwest, with its plan to impose increased planning levies on industrial and commercial developments.
Mr Conor O'Connell, executive officer with the CIF, called on the local authority not to increase levies on new businesses and existing businesses wanting to expand.
Citing an example of a businessman developing a 10,000 sq metre mixed office and retail development under the new regime proposed by the council, Mr O'Connell said the contributions imposed would reach approximately €400,000 without special or supplementary contributions.
Mr O'Connell said: "The new contributions sought are significant increases than previously charged, in some cases up to 10 times the previous charge, which undoubtedly will act as a disincentive for prospective developers and inward industrial development."
He said rates for this type of development need to be capped at a maximum threshold.
"At a time of increased costs, insurance, wage inflation, VAT increases etc and decreasing economic activity, it is vital that the council do not put existing and proposed jobs at risk by further increasing costs. This will put jobs at risk in the region." Mr O'Connell's comments are contained in a submission made by the CIF to the council's draft Development Contribution Scheme (DCS).
The DCS was adopted last November and proposes to put in place increased levies on industrial space and new homes to come into force by this March.
The proposed new levies of up to €11,950 on new homes sparked a pre-Christmas rush by house-builders to lodge applications to avoid the new levies.
Mr O'Connell yesterday described council proposals to impose the increased planning levies on new homes as "unjust".
In the CIF submission, Mr O'Connell stated that the levels of contributions sought are excessively high and targets first time buyers for services from which the whole community benefits.
Mr O'Connell said: "The overall levels of increase and specifically those applying to residential development in the county are to increase from the current rate of €5,800 to €9,560 in land zoned for residential development and €11,950 in land not zoned."
He said the increase of at least 60 per cent "will be directly passed on to the house buyer and create further affordability difficulties for first time buyers and other house purchasers".
Mr O'Connell cited a Government circular received by the council which states that local authorities should take care to avoid excessively high development contributions.