Council to consider tax on holiday homes

A levy on holiday homes and an increase in the cost of planning permission applications have been suggested as ways of raising…

A levy on holiday homes and an increase in the cost of planning permission applications have been suggested as ways of raising local funds by members of Donegal County Council.

At a meeting this week councillors discussed ways to generate local funding and argued that they needed greater discretion and power locally in raising money.

They agreed that the Donegal county manager, Mr Michael McLoone, should write to the Minister for the Environment in a general way on the need for new legislation to allow local authorities greater discretion for funding, possibly in preparation for the 2004 Budget.

The council is considering the possibility of introducing an environmental charge for holiday-home owners. There has been a huge increase in the number of holiday homes built in the county over the past five years.

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Another way to raise funds would be to increase planning charges, according to the council.

Mr McLoone, in a circular to councillors, said that up to €750,000 per annum could be realised, if planning fees were increased to just 40 per cent of the current levels charged in Northern Ireland.

The council charged €65 for a planning application for a new house, compared with £445 (€631) in neighbouring Co Tyrone.

A spokeswoman for Donegal County Council said that charges were set down in the County Development Plan. She added that any charges such as a levy would not happen overnight. The whole question would have to be discussed within the wider context of county development. Then councillors would have to agree at each stage of the process.