Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I am perplexed to hear for the first time a levy being called an incentive. A levy is a levy. That is clear to anyone. We are opposing amendments Nos. 20 and 23, which amend section 16 by removing the provision that a reduced or zero rate of levy should apply in certain circumstances. We recognise that some sites are in negative equity and that loans attach to same. In the interests of a fair, reasonable and proportionate approach, we recognise that difficult circumstances are faced by individuals who bought these sites during the height of the boom and that there is no gain in applying a levy. As I outlined, however, this does not stop local authorities from engaging with owners to establish the latter's plans for their sites and to incentivise within the authorities' development plans through zoning and other mechanisms the sites' beneficial use.

There has been extensive engagement between my departmental officials and the Attorney General's office in developing the proposals on the vacant site levy from the general scheme to the published Bill. The Bill provides that the levy should be applied at a flat rate of 3% of the market value of a site. In certain circumstances, a reduced or zero rate can apply. These provisions were included to help alleviate the financial burden faced by owners of vacant sites that are subject to site loans greater than 50% of their market value. Owners who purchased at peak prices in the boom years and whose sites have reduced in value arising from the property crash are examples of those likely to be affected. These legacy issues must be addressed.

The intention of the provisions in section 16 regarding the application of reduced or zero rates of levy is to ensure that the levy provisions are as fair, reasonable and proportionate as possible. Section 14 provides that a zero rate levy will apply where no market exists for the site or the site is on contaminated land and the estimated remediation costs necessary to use or develop the site exceed its market value. Therefore, I am satisfied that these provisions are appropriate and I oppose the amendments.

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