Housebuyers ‘face 20% cost hike in plan to charge quarries’

THE cost of building a house will increase by thousands if local authorities raise certain service charges, the Irish Concrete Federation (ICF) warned yesterday.

The ICF, which represents the concrete industry, has warned building products will rise in price by 20% because of proposed charges on quarries.

“A charge on quarries is a charge on all development. These charges will increase the cost of homes, schools, hospitals, factories, roads, motorways, water and sewerage facilities,” ICF chief executive John Maguire said.

Local authorities throughout the country plan to substantially increase the annual quarry service charge later this year.

This latest threat to housebuyers comes after it emerged that development levies on new homes will see the price of property rise by more than €10,000.

Other councils are considering introducing a site-suitability test of around €1,200, adding more costs for buyers.

And a hike in building materials will push the price of houses even higher and could force thousands out of the property market altogether, the ICF believes.

The federation yesterday urged county councillors to resist the charge increase, which they claim will cripple the concrete industry.

“If the proposed scheme of charges is imposed, increased costs for construction products will eventually be passed onto the taxpayer and consumer in the form of higher taxes and spiralling inflation,” Mr Maguire said.

Meetings have already taken place between the ICF and some councils and the federation is hoping a compromise can be reached.

“Progress has been made but it’s up to the elected councillors in each local authority to ensure the charges are fair and reasonable,” Mr Maguire said.

The ICF insists quarries cannot afford to pay the same service charges as offices or factories, and they don’t benefit from services provided by the local authority such as street lighting, public water schemes and footpaths.

“Councils need to realise that quarries are a unique type of development and cannot be classified in the same way as other industrial developments. We are willing to pay development charges but this charge must be fair,” Mr Maguire said.

Mr Maguire added that a quarry has a short life span, 15-20 years, and unlike other developments its value drops each year.

“We’re not like an industrial site that has the potential to always be commercially viable,” he said.