Roads cash payments dries up by one third
A 'get tough' policy by local authorities will seriously affect pay outs to land owners this year, consultant Ned Nagle told a meeting of farmers who have been served with Compulsory Purchase Orders for the N7 between Limerick and Nenagh.
"There is going to be a major problem in getting claims settled in the current year. Land owners were better compensated under the old agreement", he said.
But the agreement between the IFA and National Roads Authority has now been undermined, and is no longer delivering farmers' expectations of compensation or time scale, he said.
"The time scale which was set down in that agreement is no longer being adhered to in the majority of cases.
And the £5,000 per acre 'goodwill' payment which was negotiated in the deal is going towards paying the Capital Gains Tax, following the Budget change in 2003 which removed Roll Over Relief", he told farmers at Nenagh.
Mr Nagle said it had been very difficult to get any cases settled in a Donegal road development in 2003, and local authorities and the NRA were pursuing a much tougher policy.
"Severance of a farm is not regarded as important as it was for compensation, and even demolition of a house is not as big an issue now as previously", he said.
He said the average pay out on the Kilcock to Kinnegad road was €38,000 per acre, including severance payments, cost of buildings, and goodwill payments.
Settlements for the Portlaoise to Monasterevin development averaged at a similar level. Most of these were settled in 2002. But the 2003 Donegal average was about €25,500 per acre.
