Dáil Éireann Debate, Thursday - 30 September 2004
15 Mr. Durkan asked the Minister for the Environment, Heritage and Local Government the extent to which he has evaluated the huge burden of extra taxation imposed on home buyers by the introduction of dramatic increases in local authority development levies or charges; if he has in mind any proposals to alleviate the now incredible tax burden on potential householders; and if he will make a statement on the matter. [22664/04]
View answerPlanning authorities have been levying development contributions since the introduction of modern planning arrangements in 1964 Act. Development contributions are not a tax but are charged to allow local authorities to recoup some of the costs to public funds of servicing land for private development. Without contributions, the provision of services could not proceed or the full cost would have to be borne by the taxpayer.
In the Planning and Development Act 2000 new provisions were enacted to introduce transparency into the way in which development contributions are levied. Decisions as to the appropriate level of contributions are now a matter for the elected members, although my Department had the opportunity to comment on the draft development contribution schemes prior to their adoption.
Statistics on the payment of development contributions for all types of development contributions are collected by my Department on an annual basis. However, due to the lead-in time between the grant of planning permission for a development and the start of construction it is likely that the full impact of the new development contribution schemes will not be measurable until 2006-07. The statistics collected do not differentiate between different types of development for which contributions have been paid.
The general issues relating to taxation mentioned in the question would be a matter for the Minister for Finance.
