Builders' local authority levies may hit €600m

Builders paid close to €600 million in development contributions to local authorities last year, the latest figures show

Builders paid close to €600 million in development contributions to local authorities last year, the latest figures show. Statistics detailing the development levies collected from builders during 2006 show that to date, the total comes to €570.7 million.

However, the figure is based on returns made by 63 local authorities to the Department of Environment and Local Government. Another 25 have yet to report their statistics. It is likely that the final figure will be close to €600 million. Local authorities collect the development contribution from builders working on projects such as housing estates.

The money is used to pay for infrastructure, such as roads, lighting and waste water services that the local authorities put in place to service these developments. Last year was a record one for house building, and it is unlikely the figure collected this year will equal it.

The amount collected reflects the level of development in a local authority's jurisdiction. The figures show much development is still focused on Dublin and its surrounding commuter belt.

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The authority that collected the highest amount was Fingal County Council in north Dublin, which received €72.5 million. The next biggest was Dún Laoghaire-Rathdown, where the bill was €62 million. It was followed by Dublin City Council, which got €55.8 million and South Dublin, which received €41.7 million.

Kildare received €46.6 million; Meath collected €33.7 million, while Wicklow got €20.5 million.

The local authority that collected the least was Tipperary North, receiving €1 million. Cork County Council collected €3 million. The department has yet to publish figures for Cork City Council.

Galway County Council collected €16.2 million; Limerick €14.1 million and Kilkenny €12 million. Last year, Chambers Ireland, that national organisation for chambers of commerce, said money from development contributions accounted for over 13 per cent of local authority spending.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas