Dáil debates
Tuesday, 12 February 2013
Topical Issue Debate
Development Contributions
5:55 pm
Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source
My concern is that this will spread across counties such as Kildare, Laois, Offaly and Westmeath. Wicklow County Council is going after the people who purchased the houses and who are now in negative equity. The developers got their money and the banks are getting their money. Everybody has been paid but the householders are getting screwed, again. Along with carrying the bank debts, they will now also carry the debts left behind by the developer. This cannot be allowed to happen.
These people paid €200,000 to €300,000 for their houses. The development levies were included in that price. That is how it works. They are not an add-on, but part of the sale price. The certificate of compliance was issued to the purchasers. If the certificate of compliance was falsified, whoever did that, the developer or the person acting on their behalf is at fault. It is a scandalous situation. Local authorities allowed bonds to lapse or to roll over to the next phase of development without the earlier phases of the development being completed. Bonds have been inadequate and have been allowed to lapse. That is the fault of the local authorities. They should be alert to this and not allow it to happen.
If the developer is still in place, in whatever shape or form, they are responsible for this money. If they are not there, the receiver is responsible and if there is no receiver, the financial institution or the purchaser of what is left is responsible. This is a terrible situation and an awful prospect for people. If the local authority did not collect the levies incrementally or in whatever way necessary to get the money, it has funked the job and not carried out its statutory responsibilities in a proper manner.
The local authorities have been too accommodating of developers. The developers were the kings. One could not say "boo" to them or question them. Those of us who tried to question what was happening were shouted down and drowned out. Now we see the consequences of that, and this is the latest phase. Decent householders who are paying huge mortgages for houses that are worth a fraction of what they paid for them and who are on lower wages than they had when they bought the houses are now faced with this charge as well. This must be lifted from their shoulders. The Minister and the Government must step in and tell the local authorities, be it in Wicklow, Laois or wherever a local authority considers doing this, to back off and leave these people alone. This money is owed by either the developer, the receiver, a financial institution or the new owners of these estates.
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