Estuary lands to receive contribution exemption?

A PROPOSAL to exempt from the development contribution scheme property of Shannon Airport Authority and lands in the Shannon Estuary for the development of marine-related industry has been backed by members of Clare County Council.

The move was put forward at this month’s meeting of the council by Councillors PJ Kelly, John Crowe, Sean McLoughlin and Gabriel Keating. The councillors called for the lands to be exempt “with immediate effect” from the provisions of sections 5.2.1, 5.2.2 and the first two provisions of section 5.2.3 dealing with non-residential developments. The motion added that any special contributions under section 10 would not be a deterrent to developments.

Responding to the motion, Ger Dollard, director of services stated, “A review of the Development Contribution Scheme has commenced. Once a draft scheme has been prepared , the planning authority will public notice of the draft scheme, which will be on public display for a period of six weeks to allow for submissions/observations. Four weeks after the expiration of the period for submissions, the manager will prepare a report for the members on the submissions/observations received. The members give consideration to the new scheme and the manager’s report and make a resolution within six weeks of receipt of the manager’s report. The council does view this as a priority item and is endeavouring to progress as quickly as possible. It is hoped that the entire process would be concluded in the current year. The council is not aware of a statutory basis for amending the current scheme other than outlined.”

However, Councillor Kelly insisted he had received legal advice that the council could make a provision for the exemptions without having to wait for this process. “We have nothing to lose and everything to gain. The decision not to have levies might be the difference between choosing Shannon. We need a bit of creative thinking. I am legally assured and I ask for unanimous support from the council to put Shannon number one,” he stated.

Councillor McLoughlin added, “This is a great idea and an opportunity that shouldn’t be missed. There is huge potential in Shannon and it is up to us to grow and develop it.” Councillor Keating commented, “What we would lose in development fees we would make up for in rates. It’s worth a try.” Councillor Cathal Crowe urged that that the council “get behind this on a cross-party basis.” Councillor Johnny Flynn described development contributions as a “stealth tax” and he urged, “Shannon led the way in being a tax free zone, it should be supported to be developed as a levy free zone.” Councillor Brian Meaney described it as a “very good proposal” adding, “If we decide to change it, I would like to see it done properly in a manner to ensure there are no legal questions.” Councillor Joe Arkins commented, “We are all in on this”, suggesting that the county solictor be contacted.

Mr Dollard told the councillors there was no objection to the proposal. “It is a positive motion and I can understand the reasons behind it, what is at issue is the manner in which we do it and I understand that the only way is through the statutory process,” he said. He added that if Councillor Kelly had legal advice he was willing to look at it. It was proposed by Mr Dollard that the matter be deferred until the next meeting to wait for legal confirmation. However Councillor Kelly urged the proposal be put to a vote. All councillors present at the meeting voted for the proposal, apart from Councillor James Breen who abstained.

The meeting also saw Councillor Christy Curtin look for a statement of the income collected under the development scheme from 2007 to 2012. According to figures released by the council in 2007 €7,957,043 was collected through development contributions. The figure for 2012 was €1,131,726 and to date in 2013 the amount stands at €156,124.

Councillor Curtin commented that the contributions can be a “disincentive to the building industry” adding that he is aware of special contribution requests that partly resulted in developments not going ahead.