Will NAMA Re-imburse Councils for Unpaid Development Levies?

Issued : Tuesday 20 July, 2010

 At the June Council meeting the Manager, in reply to my formal Question, told me that South Dublin County Council is owed €34 million in unpaid Development Levies. I believe that there is very little awareness amongst the general public of the importance of Development Levy income to local authorities, especially large Council's like South Dublin where there has been very substantial residential and commercial development since 2000. As an example, SDCC's main road project ( ie a road built by the Council rather than by the NRA) in recent years has been the Outer Ring Road, linking the N4 at Lucan to the N7 at Kingswood and the N81 at Tallaght. This project cost roughly €160 million, of which the Council contributed about €80 million, which it had accumulated from Development Levy contributions from developers over previous years ; the other half came from Government grants . In a County like ours capital projects, such as water and sewage infrastructure, Community Centres, new Parks , Libraries are very dependent on income the Council gets from the Development Levy. As a result of the serious reduction in building development in the County, our Development Levy income has almost collapsed, so our capacity to take on capital projects, such as for example a Swimming Pool for Lucan, or provision of playgrounds is seriously constrained, to put it mildly.

It occurred to me, in view of the information given that SDCC is owed €34 million in unpaid Development Levies, that perhaps some of the loans transferred to NAMA included provision for the payment of Development Levies, so I raised the matter again at the July Council meeting. As you will see from the Manager's Reply to me, the  issue has been raised with NAMA by the Cityand County Managers Association(CCMA), but otherwise there is not any direct information relating to South Dublin. I will continue to pursue the matter; even half of the outstanding €34 million, ie €17 million would be enough to build a public Swimming Pool in Lucan!

COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

 

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, July 12, 2010

 

QUESTION NO. 26

 

QUESTION: Councillor E. Tuffy

 

Noting the reply to Question 25 at the June 2010 meeting of the Council, which reveals that approximately €34 million in Development Levy Contributions invoiced to developers by the Council remain unpaid , to ask the Manager if it will be possible to have some of the outstanding monies recovered from developers through NAMA,  to ask further if County Managers have raised this issue of payments of unpaid development levies with NAMA or the Minister for Finance, and further to ask if the Council can make public the names of development companies which individually  owe substantial amounts, say in excess of €1 million, in unpaid levies to South Dublin County Council?

 

REPLY:

 

There have been initial contacts between the CCMA and NAMA in relation to the issues arising from the NAMA process, (including outstanding Development contributions). Development Contributions are, (in the main), paid on a phased basis as the development proceeds but remain due as a condition of the planning permission attaching to the land, irrespective of ownership.

 

However, a number of factors may impact on the final amount due in respect of any specific development. These include discounts allowable for the carrying out of works in lieu of financial contributions; credits due for social or affordable housing; variations in the planning approved, development not being completed; development not commencing. These issues are resolved prior to final payment and compliance being issued in respect of a completed development.

 

It would therefore be difficult and inappropriate to publicly state that specified amounts are owed by particular developers on a general basis. However, in the event of enforcement through the courts such public individual disclosure would follow.

 

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