DEVELOPERS paid €2.124 billion in planning permission-related charges to local authorities between 2000 and 2006, and will pay an estimated €2.1 billion in additional charges by 2013, a research study carried out by Jones Lang LaSalle reveals.
The first study of its kind, it provides a detailed breakdown of the revenues earned by local authorities during the period 2000 to 2006. It also ranks the dearest and the cheapest cities and counties for planning permission-related charges levied on developers.
Of the 39 local authorities analysed, the most expensive charges are levied by authorities in Limerick, Dublin, Cork, Mallow and Louth. The least expensive charges are levied by authorities in Donegal, Dungarvan, Clare, Galway, Cavan, Waterford, Mayo and Leitrim.
Development contribution levies also vary widely across the 39 authorities. For example, an average-sized (200sq m /2,152sq ft) office development in Limerick would incur a levy of €34,000.
A development of the same size in Dungarvan would incur a charge of € 4,248, while in Donegal the charge would be €1,600.
Margaret Fleming of Jones Lang LaSalle said that despite the fact that developers had paid local authorities an average of € 354 million each year between 2000 and 2006 - and stand to pay an additional €2.1 billion approximately by 2013 - very little research has been carried out on development contribution schemes since they were first introduced by the government eight years ago.
"Our extremely detailed study provides the transparency that developers, economists, investors, bankers and others need when trying to determine how the choice of a particular location will impact on the cost of development contributions for a proposed office construction project.
"High charges may act as a deterrent for investment and development, or a barrier to enterprise start-ups. Clearly, different levels of local authority services are provided in different locations, and the large urban centres have more extensive needs.
She said that what is needed is a greater level of uniformity in charges and more consistency in the way that local authorities implement development contribution schemes and deliver the services paid for.
"This report marks the first crucial step in delivering the kind of transparency that the market badly needs."
Ms Fleming's comments echo the sentiments expressed in a report published last year by the Department of the Environment, which raised concerns about the level of charges made to developers and the variations between neighbouring authorities in the amounts being charged.
It also raised concerns about the issue of double-charging, where a local authority may demand two development contributions for the same development - a charge on the initial planning permission and then a further charge if an alteration which requires planning permission is made to the development.
