De Valera would turn in his grave at rezoning 'windfalls'

Eamon de Valera would turn in his grave if he knew landowners were getting unearned "windfall" gains purely as a result of land rezoning, the housing agency Threshold told an Oireachtas Committee yesterday.

It was not intended that a person should gain a "whacking amount of money overnight through the actions of the State" when the right to property was written into the constitution, said Dr PJ Drudy, of Threshold.

Making his submission to the Joint Committee on the Constitution on property rights, Dr Drudy said while Threshold was not opposed to a constitutional amendment, legislation that fairly interpreted the Constitution should be sufficient to deal with current housing needs.

"This legislation should ensure that housing appropriate to need is the right of every person, like primary education or health."

It should also state that land required for housing can be compulsorily purchased "at existing land value" plus a reasonable addition for disturbance.

Land could be bought "as agricultural", and then rezoned for development if the Government had the resources and planned in advance, Mr William Nowlan, a chartered surveyor and town planner, told the committee.

Mr Nowlan was responding to comments from the chair of the committee, Fianna Fáil TD Mr Denis O'Donovan, on rezoning in Co Louth which increased the value of land belonging to Fianna Fáil councillor Mr Donal Kinsella from €10,000 to €200,000 an acre. "We've all read this story in the papers; how, in these situations could we row some of that back?" Mr O'Donovan asked.

While buying the land at agricultural prices was the ideal solution, Mr Nowlan said he had "great doubts" it was achievable in the current climate.

The Government should consider imposing a new levy on developers to provide social facilities for communities, Mr Nowlan said.

He said developers were now only charged a levy for the cost of direct infrastructure. A new levy was needed to cover the costs imposed on community by new developments, such as the extra demand for schools, hospitals and transport services.

There was not a danger that this would increase house prices. "A developer will sell the house for what he can get. To say cost of a levy will put up the cost of housing is simply untrue."

When asked by Mr Donovan if he saw any justification for a cap on land prices, Mr Nowlan replied: "You might as well cap the price of cornflakes. People will just sit on the land until the cap goes away."