Huge drop in council money

THE amount of money being received by Clare County Council from development contributions has dipped hugely in the last few years.

Nora Kaye of the council’s planning section said that the scale of the drop has reflected the huge decline in construction. “The biggest income we would ever have had from it would have been around €12 million in 2008. In 2009 we got €2 million and we wouldn’t expect to receive the same amount this year.”
Ms Kaye said that it is actually hard to forecast how much will come in from planning applications that have already been approved. “If all developments approved by Clare County Council were completed, the total potential income from developments would amount to approximately €37 million. However, of these developments, it is expected that many will not commence. Of those developments started, there is a total of €5.9 million income due.
But while these developments have stared, some will not be completed, for a variety of reasons. Therefore, the actual income will be reduced.”
She said that while some developments have started, there is no prospect of them being finished. “Someone might have started a development of 60 houses and they might have only 10 built. They won’t be going on to build 50 more.”
The council has reacted to the recession and is showing flexibility to people who owe development levies. “We’re very aware of the situation that is out there and if people need to pay in phases we are open to that and in certain cases, the amount can be reduced,” Ms Kaye added.
Developers are required to pay contributions before they can commence developments and Ms Kaye said that when money is left unpaid, the matter can ultimately come to court.
However, she said that when companies go into receivership, the council isn’t generally one of the top priorities and can end up without getting money due.
Meanwhile, it was reported in the national media during the week that Clare County Council had been owed €2.3 million by Fáilte Ireland towards the Cliffs of Moher project after 2008. However, both Clare County Council and Fáílte Ireland have now confirmed that all monies due have been paid.
Ger Dollard, director of service with Clare County Council and drector of the Cliffs of Moher Centre Ltd, said that while €9.9 million was to be paid, the final figure was actually €10.8 million.