All Development Levies Should Be Paid Prior To Sale – CIF

March 15, 2013March 15, 2013862 Views

Developers should pay all outstanding development levies due to local authorities prior to sale according to the Construction Industry Federation (CIF). The CIF were reacting to news that over €750m in levies were outstanding to local authorities around the country.

“Those developers that owe money for houses they have built and sold need to pay the levies – it’s as simple as that,” said CIF Director General Tom Parlon. “Otherwise they are leaving the local authority out of pocket and that is impacting on the public. Where properties have been built and sold no development levies should be outstanding.

“We don’t want to see situations arise like what happened in Wicklow when the local authority levied the outstanding development charges on the householders who had purchased the properties. No householder should be subjected to these charges. It is completely unfair on them. It also damages the local authorities and the building industry in general. Under no circumstances should the taxpayer have to carry the can for these outstanding levies.

“We need to have a process in place so that the development levies are paid before the sale of any unit is completed. This would prevent any problems like this arising and it would ensure that the local authorities and the householders are protected.

“It is also worth noting that some of the outstanding fees relate to development levies applied to planning permissions. There is no point in a local authority pressing for money for a development that hasn’t been built. The developer won’t have access to that money until they sell the properties.

“That is why it is important that a proper process is in place. There are many local authorities who are already operating in collecting the levies on this basis and it seems to be a much more manageable system,” Mr. Parlon concluded.