A challenge by the Construction Industry Federation to a new development levy scheme introduced by Dublin City Council has opened before the High Court.
Under the new Development Construction Scheme Scheme (DCS), developers will, for example, have to pay a contribution of €11,500 per house constructed within the council area whereas, under the previous scheme, the contribution was €3,000, Mr Justice Gilligan heard.
The new scheme also requires developers to make contributions towards a range of infrastructural projects, including roads, sewage, drains, footpaths, public parks and other amenities within the council area.
The CIF claims the scheme is in excess of the powers of the council.
That claim is denied.
The hearing opened yesterday and is expected to last three days. A stay on the operation of the new scheme, which was secured by the CIF in December, has been discharged but, should the CIF win the challenge, the council will have to refund contributions made under the new scheme.
In the proceedings, the CIF wants an order quashing the decision of City Council of December 1st last to make a Development Construction Scheme under Section 48 of the Planning and Development Act, 2000.
Opening the case, Mr James Macken SC, for the CIF, said the scheme was in excess of the council's powersand failed to state the basis for determining the contributions to be paid for public infrastructure or facilities.
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