€100,000 fee unfair, say developers

The construction industry has condemned a €100,000 fee to be charged by An Bord Pleanála for an application to build major infrastrucutre…

The construction industry has condemned a €100,000 fee to be charged by An Bord Pleanála for an application to build major infrastrucutre projects and warned it could push investors offshore.

An Bord Pleanála announced new fees today, saying the changes were the result of a major revision of fees in relation to appeals and referrals.

From December 10th, they will include a €100,000 fee for a strategic infrastructure development application. There is currently no charge for such an application.

Appeal fees relating to commercial developments will also increase from €630 to up to €3000 or for unauthorised developments from €1900 to €9,000.

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Other changes include an increase in fees for members of the public who wish to appeal against ordinary planning decisions, from €210 to €220.

Minister for the Environment, John Gormley, who approved the fees, said they were necessary. It was vital that applicants seeking planning for big projects pay a fee that was commensurate with the quality of the service being provided, he said.

But Construction Industry Federation director Hubert Fitzpatrick said the fees were unfair.

He said the state advocated private industry to undertake projects of national and regional importance to achieve its policy objectives. "At the same time, it wants to push all of the costs of the planning application process onto the construction industry, at a time when the industry is experiencing significant cost pressures."

The costs involved in designing major infrastructural projects and preparing planning applications were "extremely high" with the cost of business in Ireland was already "amongst the highest in the world", he said.

"There comes a point at which costs are so excessive that investors look to less risky investment opportunities, whether in Ireland or abroad," he said.

But Mr Gormley said approvals under the new strategic consent process "confer a significant economic gain to developers" and it was right they should contribute towards the costs associated.

"I'm also fully supportive of the board's move to force individuals responsible for unauthorised development to pay a heavy premium for their actions' this is the right and proper course of action".

Modest increases in third party appeal fees from €210 to €220, were less than half the inflation rate since the last price review in 2003, he said. No change is proposed at present to the €50 fee for the making of submissions or observations on an appeal case.