Minister rejects claim tax breaks fuelled over 2,800 'ghost estates'

THE GOVERNMENT has rejected suggestions that tax breaks which encouraged residential development during the boom years fuelled the construction of more than 2,800 so-called “ghost estates”.

Minister of State for Housing Michael Finneran said: “This thing about tax breaks really needs to be put into perspective. If you look at the figures, less than 10 per cent of all of the developments, of all of the unfinished estates, are in the tax break areas.”

He was speaking following the publication yesterday of the National Housing Development Survey, which identified the scale of vacant or unfinished estates across the State.

The survey found more than 43,000 empty or unfinished units across the State’s 34 city and county council areas. Cork County Council had by far the largest number of ghost estates with 284 unfinished or substantially vacant developments, followed by Wexford with 180, and Fingal and Kerry with 152 each.

A group established to determine the future of the estates is due to have its first meeting within the next two weeks and is expected to report to the Government next January.

Minister for the Environment John Gormley refused to comment on the survey last night, or to discuss what might be done with the estates, saying it was a matter for Minister of State for Planning Ciarán Cuffe.

Mr Cuffe said last August that some demolition of unfinished houses and apartments would be necessary. However, yesterday, he said demolition was not an issue for the Government. “Ultimately that is a matter for the owners of the units. It is not a matter for the Department to take that decision. We want to see as many . . . completed out as possible.”

Mr Finneran said the Government was determined to reach prompt solutions for the unfinished housing estates, but said it could not “magic away” the problem.

In addition to determining solutions for the estates the group will be asked to advise whether any legislative or policy changes are needed to deal with the problem, and to avoid future unsustainable development.

The group will include representatives of central and local government, the banking, construction sectors and Nama, as well as members of the professional architectural, planning and engineering institutes.

Mr Finneran said the results of the survey and establishment of the group to determine a way forward for the estates would allow the Government to take prompt action on the problem. “The results of this survey won’t immediately change the reality for Johnny and Mary living in a half-finished development without finished roads or street lights. But I believe the survey will give . . . comfort at an aggregate level.”

The survey identified 23,000 completed but unoccupied houses and apartments and a further 20,000 which are at various stages of completion. Of these just under 10,000 are at early stages of construction, with foundations or a shell in place.