Dáil debates

Tuesday, 12 December 2006

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)

I voted for the scheme in Kildare and sought some ring-fencing in order that councillors would have some control over it. It is obvious that in seeking local contributions from any capital schemes, the Department of the Environment, Heritage and Local Government is one of the drivers of the final extent of the levies. There is no shortage of projects on which money should be spent. Indeed, a considerable amount was excluded from the Kildare scheme because it would not have been sustainable.

However, the burden has been shifted from the Department of the Environment, Heritage and Local Government to local authorities. Although much money is being collected, some local authorities are in significant debt. I received a parliamentary reply from the Minister regarding capital and current debts as of last year and the amount came to €3.5 billion. Apart from a major capital debt, Kildare County Council has an additional overdraft of €25 million.

The jury is out as to whether levies have an impact on the price of houses. I will provide one example with which I believe the Minister will agree. In a development which was carried out in two phases, the price of a first phase apartment was €350,000. However, by the time the second phase was being sold, the price of an identical apartment with the same development levies and planning permission had risen to €500,000.

Last night's "Prime Time Investigates" programme demonstrated that unscrupulous auctioneers, valuers and estate agents have as much of a role in driving up prices as do development contributions. While I am unsure whether this is a cause for concern for the Minister, there can be variations in house type, as opposed to the amount of contributions paid. In the case of County Kildare, a large number of apartments are being constructed——

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