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Developers owe local councils over €570 million

Development levies are used to offset the cost of developments to the public.

Image: Sam Boal/Photocall Ireland

DEVELOPMENT LEVIES OF over €570 million were owed to local authorities at the end of 2012.

That is the most recent date for which figures are available, says Environment Minister Alan Kelly.

The levies were designed to offset the public cost of developments, but many developers went bust before paying them.

That means that councils have been left out of pocket, with Dun Laoghaire-Rathdown out by around €100 million. That, for context, is €11 million less than the council has planned to spend in all of 2014.

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Kelly said that the system went back to 1963 and the figures comprise both cash and long-term elements.

“Development contributions allow local authorities to recoup some of the costs to public funds of servicing land for private development. They provide a mechanism by which developers can contribute to the cost of providing public infrastructure and facilities that benefit development in the area.

“The payment of development contributions is a longstanding part of the planning system, dating back to the first Local Government (Planning and Development) Act in 1963.

“Since the Planning and Development Act 2000, each planning authority is required to have a development contribution scheme in place setting out how development contributions are to be applied in their area and outlining the major infrastructure projects to be funded by contributions received.”

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