Dáil Éireann Debate, Thursday - 7 October 2004
248 Mr. R. Bruton asked the Minister for the Environment, Heritage and Local Government the revenue expected to be raised by the new development levies adopted by councils as a result of the direction given by his Department to them; his estimate of the increase in the total building cost that this will represent in the housing and commercial sectors; and if he is considering measures to reduce the impact of these levies on first-time buyers. [23817/04]
View answerStatistics on the payment of development contributions, which are used to fund the capital costs of servicing land for private development, are collected by my Department on an annual basis. Development contributions schemes were adopted by planning authorities by 10 March 2004, as required by the Planning and Development Act 2000, and once adopted all planning permissions granted subsequently were subject to the conditions of the new scheme. 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 amount collected under the new development contribution schemes will not be measurable until 2006-07.
It is not anticipated that the contributions levied will unduly affect the price of houses or new industrial or commercial development. While the development contribution system was reformed by the 2000 Act, the system has in fact been in place since the 1963 Act. As before, development contributions are attached as a condition of planning permission and therefore paid by the person carrying out the development in advance of construction starting. They are not paid by individual house purchasers.
