Local authorities throughout the State have been hit by an avalanche of planning applications for hotels, multi-storey car parks and other developments to beat an end-of-year tax deadline.
In the Budget earlier this month, the Minister for Finance, Mr Cowen, announced that he was carrying out a review of tax incentives for development and intended to phase out existing incentives by July 1st, 2006.
These incentives apply to urban renewal, "living-over-the-shop" schemes, multi-storey car parks, student housing, third-level buildings, hotels and holiday cottages, nursing homes, private hospitals, sports clinics and childcare facilities.
It was made clear that developers would only be able to avail of the incentives, which include capital write-offs against tax of up to 100 per cent of construction costs, if they made valid planning applications by December 31st - next Saturday.
Since the offices of local authorities are closed for the Christmas and New Year holiday, this led to a rush of planning applications in the past few weeks. One council's waiting room was said to be "choc-a-bloc" with applications.
Traditionally the pre-Christmas period sees a flood of new applications.
"No property developer in Dublin seems to be able to sit down to his Christmas dinner without having at least three planning applications lodged," one source said.
Because of the tax deadline, the number of pre-Christmas applications is expected to beat all records. Developers will also be anxiously awaiting confirmation that applications have been accepted as valid.
