Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 6 Dec 2001

Vol. 546 No. 1

Ceisteanna–Questions. Priority Questions. - Land Compensation.

Eamon Gilmore

Question:

2 Mr. Gilmore asked the Minister for the Environment and Local Government the main features of the agreement he reached with the Irish Farmers' Association regarding increased compensation for farmers whose land is compulsorily acquired under the national road plan; the estimated additional cost of the agreement; if the new terms will apply to land or property owners, other than farmers; and if he will make a statement on the matter. [31209/01]

Last week I concluded a proposed final agreement with the Irish Farmers' Association aimed at resolving the issues surrounding access to farmland for the national roads programme. Authorisation for the proposed agreement is now being arranged by the IFA and the National Roads Authority.

The agreement provides local authorities with earlier and speedier access to land for the purposes of national road construction than is now possible under CPO procedures. This early access is a significant advantage for the national roads programme as design, investigation and acquisition are now carried out in parallel rather than sequentially as in the past. The IFA is pledged to build support for farmer co-operation in relation to access and the overall agreement. In return for this co-operation from landowners, the NRA or, as appropriate, local authorities, will pay a premium of 5,000 per acre in addition to assessed compensation; assess the market value of land by reference to the value of the actual land parcel on a stand alone basis rather than as part of the whole farm; provide replacement farm buildings and take over responsibility for fencing on all new national roads under the programme; pay compensation for damage and disturbance caused by site investigation works, including disturbance to livestock, crops, etc.; speed up administration of land acquisition with a view to earlier processing and payment of cases, with additional interest to be paid by local authorities or the NRA where deadlines are not met; prepare a code of practice containing guidance aimed at ensuring better liaison and communication with farmers affected; facilitate liaison with farmers in relation to the new agreement and work with a joint committee, which will also comprise farming interests, to oversee its implementation.

The estimated extra cost of the 5,000 premium is in the range of 100 million to 125 million spread over the period of the NDP. The agreement will extend solely to land acquired for the purposes of the NDP national roads programme. It will apply to land for which compensation has not already been determined and which is not the subject of planning permission or zoned for open space, commercial, residential, industrial or recreational purposes. The agreement is due to take effect from 10 December next and will operate under the framework of the Programme for Prosperity and Fairness.

I thank the Minister for his reply and for giving me the estimated cost of the goodwill payment of 5,000 per acre. What is the estimated cost of the part of the package which relates to the new means of assessing the market value of the land on a stand alone basis as distinct from a whole farm basis? What is the estimated cost of the replacement of farm buildings and of the new fencing arrangements, which are part of the package? Will the package apply to landowners other than farmers?

The package applies to anyone whose land is being taken for road purposes under the national development plan. That will mainly, but not solely, be farmers. Other people own land who may not be full-time farmers. It relates to land which is not the subject of planning permission or zoned for open space, commercial, residential, industrial or recreational purposes. It is impossible to put an estimated cost on the total package. I have seen an estimate by the IFA that the total package is worth approxi mately 200 million. It is impossible to give such a figure because while we have rough estimates about the amount of land that will be taken and some idea of the general number of farmers affected, we do not know specifically how many farmers will be affected until road lines are decided. I am not in a position to either agree or disagree with the figure put into the public domain by the IFA. The 5,000 premium, based on the estimate of 25,000 acres which might be affected, will cost approximately 100 million to 125 million. I cannot be more accurate than that.

Does the Minister agree with the assessment the President of the IFA stated on a radio programme this week? I hope I summarise his view correctly. His judgment was that the effect of assessing the market value of the land on a stand-alone basis might have the effect of increasing the value of the land from, for example, £5,000 per acre on a whole-farm basis, to about £20,000 per acre on a stand-alone basis. The goodwill payment is estimated to cost in the order of 125 million and the estimated cost of the market value of the land could therefore be above that at between £200 million and £300 million.

I do not agree with that assessment. I did not hear the radio programme, but based on what the Deputy says I do not agree that the price per acre would go from £5,000 to £20,000 per acre based on a stand-alone assessment. In some places the value of an acre of land may be more than is being paid currently, but it is the case in very few areas. In other places the value might be less. The average price per acre, including compensation, paid on about 18 of the last CPOs for major roads, was about £13,000 per acre.

Top
Share