This article is from page 2 of the 2006-01-03 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 2 JPG
HOUSE-buyers are to be hit with a price hike after Clare County Council yesterday imposed additional levies on new homes. From January 1, builders have to pay an additional 3.3 per cent in planning contributions on new homes.
The move by the council to increase levies will have resulted in a rush by developers to beat the end-of-year deadline for lower levies. The impact on the market in Clare is not expected to be immediate.
In the face of much opposition from councillors and the building industry, the local authority adopted a new scale of planning contributions in 2003 which almost doubled the cost of water and sewerage connections to new homes in the space of 18 months.
Those hardest hit in the new scheme are householders living in areas serviced by the Government-sponsored Serviced Land Initiatives (SLI) where, during the first phase of the charges, householders were asked to pay €5,000 for water and sewerage connections. The SLIs are located on the eastern and western outskirts of Ennis, Clarecastle and Clonlara.
The council’s 2004 annual report shows that it spent less than half the €10 million generated through a controversial scheme targeting developers to fund public infrastructure. €10.4 million was raised through the contentious Development Contribution Scheme but only €4.69 million of this was spent during the first full year of operation.
A detailed breakdown shows that last year the council collected €1.45 million for amenity and recreation projects, but spent only €0.235 million on such projects. €1.48 million was collected for roads projects, but only €0.10 million was spent.
“The projects identified in the Development Contribution Scheme will be funded in whole or in part from development contributions collected during the lifetime of the scheme, e.g. major water supply and sewerage schemes,” the report stated. “A number of public infrastructure projects are at planning or design stage and monies collected from development contributions shall be applied to fund these projects.”
Explaining the high amount received through the scheme, the council report states, “This figure is due in part to a very high level of collection in the months leading up to the adoption of the scheme in March 2004, as developers took the opportunity to ensure that all payments in respect of previously decided applications were made.
“The level again increased in December 2004 as applicants ensured that their payment was made prior to the increase to be applied in January 2005, under the index linking of the amounts chargeable under the scheme.”