Cullen ‘must suspend levies over court challenge’

ENVIRONMENT MINISTER Martin Cullen must suspend development levies throughout the country until a High Court challenge to their introduction in Dublin has been decided.

The call was made by Fine Gael’s environment spokesman Bernard Allen, who said the Construction Industry Federation’s (CIF) case against Dublin City Council would show up anomalies in the scheme, including the lack of an appeals mechanism and discrimination against buyers of new properties.

In the High Court yesterday, the CIF challenged measures requiring developers to make financial contributions to local authority infrastructure developments, including roads, parks and footpaths in the Dublin City Council area.

James Macken SC, for the CIF, secured leave to challenge the decision of the council to make a Development Contribution Scheme and secured an order restraining the council implementing the scheme pending the outcome of proceedings or further order. He said the CIF is also objecting to a similar scheme planned by Dun Laoghaire Rathdown County Council.

In an affidavit, CIF director general Liam Kelleher said the scheme would mean a significant increase on the level of contributions previously required in the majority of areas within the Dublin City Council area.

Developers were being asked, for example, to pay 2,650 per house or apartment and 49 per square metre for commercial premises.

In a statement issued yesterday, the CIF said that for months it had been expressing serious concerns about greatly increased development charges.

“We feel however, that our concerns have been ignored. Our concerns relate to the legality and the arbitrary nature of these new development levies,” it said.

Mr Allen reiterated his belief that the scheme was a vehicle to introduce so-called stealth taxes.

“The minister must think again and there should be no imposition of these charges until the matter has been clarified in the courts,” he said.

Legislation for the scheme was introduced by Mr Cullen’s predecessor at Environment, Noel Dempsey. Mr Cullen’s spokesman said yesterday that because a legal process had been instigated it would be inappropriate to comment at present.