Compulsory purchase orders to pose problems for farmers and landowners

PROBLEMS could be looming for farmers and landowners in line for compulsory purchase orders.

The warning was issued at the convention in Killarney of the Institute of Professional Auctioneers and Valuers, which has 950 practising members.

An expert on compulsory land acquisition, Dick Collins, FBA Consultants, Fermoy, said landowners could be in for surprises.

This was due to the change in land values, an apparent policy change by the National Roads Authority towards providing underpasses and the increasing rate of capital gains tax.

Mr Collins said the refusal to provide underpasses and the taking of much larger areas in CPOs is probably the most serious development, particularly for intensive livestock farmers.

“County councils have the legal power to deny landowners underpasses in situations where the value of the land cut off by a road scheme is less than the cost of the underpass.

“At the peak of land prices, the break-even point was about four or five acres. Under the new circumstances this point could be 15 or 16 acres.”

Mr Collins said the change of policy flies in the face of the December 2001 agreement with the IFA which provides for the safeguard of the farmers’ viability.

Mr Collins referred to the increase from 20% to 25% in recent months in capital gains tax, the 40% level it was at a few years ago and the likelihood that this high rate could be reintroduced.