Sunday Business Post Sunday, 8 September 2013 Page: 6

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CIF attacks Labour plan for levy on vacant development sites

By Niamh Connolly Political Correspondent
However, this weekend, Parlon The Labour Party's budget However, Tom Dunne, head said that Dublin City of the School of Real Estate proposal for a levy on vacant Council, rather than private and Construction Economics, development sites would be an developers, were among the believes a levy would not only added burden for developers benefit the community but already under financial pressure, parties responsible for derelict would boost the prospect of according to Construction and vacant sites in the capital. He said the plan would Federation Industry sale for others in the area. mean an additional burden for (CIF) director general Tom He noted a recent application developers under financial Parlon. from a receiver seeking to pressure that would penalise A plan to regenerate derelict undertake extensive landscaping them for factors outside their sites zoned for development and development to a derelict control, such as delays in planning, and discourage land hoarding site, to enhance the title and finance. in Dublin's city centre could attractiveness of other vacant "There are a lot of reasons mean a tax of up to 10 per cent blocks under receivership. why sites are left vacant, and on undeveloped zoned sites. He said it effectively recognised Dublin City Council has probably It was proposed in a report "that derelict sites depreciate more of them than anybody submitted to the Minister for the value of else, yet they are coming Finance, Michael Noonan, by surrounding properties". It Tom Parlon out on this," he said. also degraded the wider community Labour's Dublin Mayor, Oisin He said that there could be and "the fact of keeping Quinn, in conjunction with a site derelict is an increase Dublin City Council's planning major planning problems that division. It is backed by mean "it could take a while to in cost for taxpayers". off the Dunne said vacant site tax Labour Minister of State for get developments ground". would only be possible for larger Housing and Planning Jan cities, rather than regional O'Sullivan along with Labour "It can take time to get matters towns on the basis that* "the backbenchers. sorted out in respect of title Quinn's report states that difficulties. If you have a difficultyeconomics wouldn't work". "The tax may work in cities the primary aim is that land with a site and you have a but may not work in smaller would be "developed or used levy on top of this, it won't help urban areas or large provincial so that it is no longer a blight you get it over the line," he said. on the city". Quinn himself towns. It would be difficult to He said that the Derelict has floated a tax of 10 per cent Sites Act already allowed Dublin sustain an argument that a tax would be levied in a town like of the value of the site. City Council to levy such In his submission to Noonan, sites annually to encourage renewal, Mullingar," he said. Quinn said sites used for and councils also had a temporary park or playground compulsory purchase powers. would also benefit A new levy would "send out from a reduced or zero tax. a very wrong message to investors", But it excludes a temporary he said. surface car park as this is Contrary to claims by the deemed unsustainable land Labour Party, Parlon said that use "with an income that disincentivises "the notion that developers are its proper development". sitting on a site in the hope that prices will rise is misguided". The 'use it or lose it' principal "Either they're waiting for behind the proposal means planning, title, financial or that if the levy remains unpaid, other set-backs to be addressed. the council could petition to And even if they get put the land into liquidation. A all that sorted, the market is liquidator would put the site on still very weak." y the market.

Sunday Business Post Sunday, 8 September 2013 Page: 6

Circulation: Area of Clip: Page 2 of 2

44529 32600mm

A vacant site in Dublin on the Coombe in Dublin 8

FEARGAL WARD