Louth County Council development levy to increase to €11,646 per home
Louth County Council September meeting
Councillors at the Louth County Council September meeting voted to adopt the local authority's Draft Development Contribution Scheme, which will see the levy charged for the building of a house increase by 115% to €11,646 per unit and the levy charged for commercial developments increase to €90 per square metre of site size.
Prior to councillors making a decision on the scheme, Cllr Emma Cutlip proposed amendments which were accepted by the Chief Executive relating to reliefs available for certain types of development.
The proposed scheme did not receive support from all councillors, with Cllr Dolores Minogue saying that she could not get her head around “a massive leap” in the levy amount.
Cllr Minogue said that it would be the house buyer who would pay for it, with the Fine Gael councillor adding that young people can't get onto the local authority's housing list because they were earning too much, and that if they went “to the bank to get money they can't get it”, and put forward that the levy be left as it currently is.
Chief Exectutive Joan Martin told the meeting in response that when she was appointed in 2014, the levy was about €8,500, and she made the decision to bring a scheme to the Council that reduced the levy “substiansially”, which meant a very substiantial reduction in the local authority's income.
She added that this was done because house building at the time “was non existent after the banking crisis”, and to help encourage house building.
Ms Martin said that the Council's levy scheme had been artificially low as a result for a number of years and what they were now doing was brining it into line with what she thought was the average around the country.
The Chief Executive said that by not adopting the scheme, the councillors would be giving up “very substantial amounts of income” for the Council, which could amount to €20 million over five years.
Ms Martin also added that the money raised went towards capital items including roads, footpaths, urban regeneration, as well as social amenities including playgrounds.
Councillor Cutlip proposed that relief of 75% be allowed for Town Centre Regeneration projects, developments which fall within the D1 regeneration zones, and also for derelict sites.
Cllr Cutlip also proposed a new relief of 50% to be applied to the provision of new Crèche, Childcare, and Early Years Education facilities.
A number of councillors spoke on the matter, both in support of the work that the Council would be able to carry out due to the increased levy and some against. Sinn Féin councillor Tom Cunningham saying the cost would be passed onto the buyer, and the amount of the increase in levy being opposed by Fine Gael councillor Robert Nash.
Cllr Minogue proposed an amendment that the levy be set at €7,500, with her proposal going to vote. The vote was defeated however, with just the four Fine Gael councillors, Dolores Minogue, John Reilly, Robert Nash and Paula Butterly voting for it and the rest against it, with two abstaining.
A vote was then taken on the Council's proposed scheme, with 21 councillors voting for it, the four Fine Gael councillors voting, against and one abstention.
In comments on her amendments to the scheme that were adopted, Cllr Cutlip said “There are buildings literally falling onto the streets of Drogheda and Dundalk and if the council is serious about addressing dereliction, we must take every opportunity to facilitate the renovation of these sites.
She added, “furthermore, with population booming across the county, and a crisis in childcare and early years sector, we must take every opportunity to assist the sector, including reducing the costs of building or fitting out premises.”