Planning application fees set to increase

PLANNING applications are set to become more expensive as the Government attempts to boost local authority coffers without resorting to politically damaging household taxes such as water charges.

Local authorities are facing a funding shortfall of €1.5 billion by 2010, according to a Government-commissioned report published yesterday.

In the report, consulting firm Indecon recommended water charges and other rates be levied on second homes.

But Environment Minister Dick Roche ruled out new taxes on householders, saying they would “run directly counter” to Government policy.

Domestic water charges were abolished on January 1, 1997, by the rainbow coalition of Fine Gael, Labour and Democratic Left. Reintroducing them would be politically damaging less than 16 months from the election.

Fine Gael and Labour criticised Mr Roche yesterday for appearing “clueless” on how to solve the potential funding shortfall.

But the lack of political appetite for water charges was emphasised by the fact that both parties agreed with Mr Roche that they should not be reintroduced.

Instead, Fine Gael spokesman Fergus O’Dowd called for reform to end “inefficiency and unnecessary bureaucracy (in) local government”, while Labour spokesman Eamon Gilmore called on Mr Roche to identify ways to solve the problem.

Mr Roche said he would seek greater efficiency.

“It goes without saying that in a sector which spends e9bn a year, even a small percentage saving would bring huge dividends,” he said.

He would seek to increase planning application fees, which are set by central government. He believes the fees should reflect the amount of money it costs a local authority to process applications.

“I see more equitable planning fees coming down the track,” Mr Roche said, although he gave no indication of what kind of increases were likely. The current fee for an application to build a house is e65.

There were contrasting reactions to his proposals. Employers’ group IBEC accused Mr Roche of ignoring the recommendations in Indecon’s report.

Spokesman Brendan Butler said businesses were “no longer prepared” to subsidise household services.

He said domestic water metering should be introduced, adding: “Each household should receive an annual water allowance and where this is exceeded, a charge would be applied.”

But trade union IMPACT said Mr Roche was right to reject domestic charges.

National secretary Peter Nolan said: “Business simply could not function without the water, waste, transport, tourism and other services local authorities provide. It is only fair they should pay for these services.”