New schools and medical clinics will be hit by levies

NEW schools and medical clinics will be hit by development levies being introduced by the Government, adding thousands of euro to the buildings’ costs.

While the Government has already failed to fulfil pre-election promises to build schools across the country, the levies will put additional pressure on the limited funding available.

The levies do not merely apply to the building of houses and factories, but to all developments, including schools and clinics. Kerry County Council is proposing levies of €40 a square metre for schools, clinics and industrial developments and almost €50 for guesthouses and hotels.

Yet Environment Minister Martin Cullen is not telling councils to exempt any building from the levies as it is up to councillors to set the levies, the minister’s spokesman said.

“It is a matter for local authorities to decide how and what levies to apply. The minister trusts local authorities to do their own business at local level,” the spokesman said.

Last night, in a special debate in the Dáil on the issue, Fine Gael environment spokesman Bernard Allen said the levies were being used to make up for the shortfall in Government funding for infrastructure.

“The Government in its mealy mouthed arrogance, has hijacked this scheme to cover up the complete and utter mess it has made of the public finances,” he said.

Responding to the allegations, Minister for Housing Noel Ahern said the suggestion that the scheme is being imposed by stealth was a myth.

The final decision on making a development contribution scheme, and setting the levies, rests with the elected members of the local authority.

“This is an important new policy role for the elected members and a challenge, I would hope and expect, that local authority councillors from all sides of the political spectrum will take up,” he said.

Development levies imposed on one town may end up benefiting another area, it emerged at a meeting of Kerry County Council on Monday evening.

Business people were paying thousands of pounds in Caherciveen for parking, sewerage, roads and other levies, over the past year “but they can’t see results”, Cllr Paul O’Donoghue (FF) and brother of Tourism Minister John O’Donoghue, said.

The money raised from levies went towards countywide programmes and can be spent throughout Kerry.

Cllr O’Donoghue said: “It is no consolation to the business person in Caherciveen there will be extra car spaces in Castleisland.”