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RollingNews.ie

Why councils will soon be fining themselves for owning vacant housing sites

The vacant sites levy was introduced to free up land for homes.

AS THE COST of either renting or buying a home continues to soar across Ireland, the country’s housing shortage shows no sign of easing.

However getting more homes built has remained a frustratingly difficult challenge as the number of new completions remains well below the level of demand.

One measure that was hoped to get shovels in the ground was the creation of a vacant sites register, which was introduced with great fanfare at the start of last year.

The idea was for local councils to create a public list of land in their area that could be used for housing construction but was lying disused.

If a site is still on the list come 2019, the owners will be liable to pay a fine equal to 3% of the market value of the site, rising to 7% in 2020.

However many of the prime development sites in each council area are in the hands of the local authorities themselves – effectively requiring councils to put their sites on their own vacant site registers.

Dublin City Council, for example, has more than a dozen of its own sites on the list, with its own name cropping up more than that of any private landholder.

So, given that the council is responsible for penalising those on the register, what happens when it places itself on the list?

The question of how effective the vacant sites register will be in getting councils to build is important as it is regularly pointed out that local authorities own huge chunks of land around the country on which there could potentially be thousands of homes built.

Who pays

Data published in November by housing policy analyst Mel Reynolds said that the country’s local authorities cumulatively have enough land to build nearly 38,000 properties, including 12,000 in Dublin city alone.

Central government says that councils will still levy fines on their own sites, but they will do so against individual departments instead of the local authorities as a whole.

“Local authorities must apply the levy irrespective of the ownership,” a spokesman for the Department of Housing said.

“If a local authority is identified as the owner of a site which is entered on the register, the relevant department is liable for the levy.”

“You could have different sections of councils that would own different vacant sites on the register. (Fines) aren’t levied on the council as a whole, they’re on the department that controls the site.”

90425892_90425892 RollingNews.ie RollingNews.ie

For example, Dublin City Council has a department for housing and one for transport. If they both own sites that are on the vacant sites register, the departments are fined individually.

The theory is that the fine would come out of the budgets of individual departments, so departments would be eager to keep their properties off the list.

The proceeds of the levy will be set aside for housing developments. The ring-fenced money will be spent by the local authority.

‘Pointless’

However, Sinn Féin housing spokesman Eoin Ó Broin said it is unlikely that fines will be effective in getting councils to build or sell.

“The purpose of the levy is to push private owners to develop land. It was designed for that purpose and if you levy public bodies, does that push them to develop? No,” he said.

He pointed out that, even if the fines are ring-fenced, the problem for most councils looking to build houses is a lack of money. Fining departments will be unlikely to incentivise them to build if a lack of money was the problem in the first place.

“(Councils) would say the land isn’t being hoarded, they just don’t have the resources to build,” Ó Broin said.

“While a local authority may own land, they can’t develop it on their own. They have to go and secure funding from central government.

“People might say local authorities should be more demanding, but county and city managers know what funding is available.”

Fianna Fáil housing spokesman Barry Cowen said that the fact that there are so many public properties on the registers make it seem as if “the state is doing a bad job imposing a tax it came up with, but will actually end up paying itself”.

The government has played up the fact that it is increasing the rate from 3% to 7% next year, but it appears it will be the government itself paying it,” he said.

90231705_90231705 Boarded-up property in Dublin city Sam Boal Sam Boal

Lorcan Sirr, a lecturer on housing at DIT, said that a council fining itself seems illogical, particularly if the reason for many public sites being left vacant is a lack of funding.

“Councils are all run on state money, so you’re essentially fining the taxpayer,” he said. “The money just goes in a circle, (the fine) is a bit pointless.”

However, Sirr said while a fine may not push a council to build, it is still important that unused state land is on the vacant sites register.

“It isn’t all about the money. The register forces them to identify land and justify why they shouldn’t be fined,” he said.

“It puts an onus on councils to identify all their vacant land and puts that in the public domain, so then we can query and question it.”

While he said, in theory, the public listing of land on the register should push councils to build, in practice, they have been slow to act.

This echoes recent criticisms by analysts, who said that there has been a “lack of urgency” among local authorities in introducing the new initiative.

For example, in Fingal, one of the areas where the country’s housing shortage is most acute, only eight sites have been added to the register a year after it was established.

“Many councils haven’t really populated their register and there is a question of why councils have been so slow in doing it,” Sirr said.

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Written by Paul O’Donoghue and posted on Fora.ie

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    Mute Kerry Blake
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    Feb 17th 2014, 10:08 PM

    That’s not a rifle image that’s a shotgun.

    276
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    Mute pat James buchannan
    Favourite pat James buchannan
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    Feb 17th 2014, 11:01 PM

    Do you really think the people in journal .ie would know what a rifel looks like ………..

    33
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    Mute pat James buchannan
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    Feb 17th 2014, 11:02 PM

    Rifle

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    Mute pat James buchannan
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    Feb 17th 2014, 11:17 PM

    I think I will send a picture of a tank to the journal.ie ……… Tomorrow’s headlines ….. YELLOW SUBMARINE found in ireland …… Beatles no one suspects

    31
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    Mute Hibernicus Exul
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    Feb 18th 2014, 12:02 AM

    hahahahah while it was the first thing i thought when i seen the picture i just know someone would say it !! still cant decide though are you just being pedantic or are you right to say it

    34
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    Mute Tim Stephen Hendy
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    Feb 18th 2014, 5:41 AM

    yes but it’s an ASSAULT shotgun.

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    Mute Speedy Justin
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    Feb 18th 2014, 8:59 AM

    Well the way D.O.J and the gardai want to reform the gun laws you might be right!!!!

    4
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    Mute Jamie
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    Feb 17th 2014, 10:13 PM

    Haha that’s a shotgun lads, change it. Gun laws in this country are so stupid. Let the man have his rifle ffs.

    106
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    Mute Reg
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    Feb 17th 2014, 10:24 PM

    Well it depends on the rifle. A sporting rifle can be legally held but nobody needs an AK47!

    73
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    Mute James McCormack
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    Feb 17th 2014, 10:28 PM

    The problem is it wasn’t his riffle. This guy is part of a gang that was targeting elderly people living on their own, breaking into their homes and robbing them. The gun that was recovered belonged to a 77 year old man whom they tied up and beat. They stole the firearm from his home along with a sum of money.

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    Mute mb letterkenny
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    Feb 17th 2014, 10:35 PM

    From Donegal Daily

    BREAKING NEWS: A MAN has been arrested and a firearm seized during a Garda operation this evening.

    A Garda spokesman confirmed to Donegal Daily that the man arrested was detained after a search of a house in Ballyshannon.

    The suspect is in his 40s.

    A rifle was recovered during the search which came just days after a weapon was taken during an incident in Glenties where a 77-year-old man was battered and robbed by a vicious gang of burglars.

    “A male aged in his 40s was arrested at the scene. He is currently detained under Section 30 of the Offences against the State Act, 1939, at Ballyshannon Garda Station,” said a spokesman.

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    Mute Massimo Osti
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    Feb 17th 2014, 10:53 PM

    James,

    If this turns out to be true, it’s great news! That gang have been praying on elderly and vulnerable people in the north west for too long. I wonder was it anything with the €10,000 offered for information. Either way, lets hope these animals get sentences fitting their crimes!

    72
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    Mute pat James buchannan
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    Feb 17th 2014, 11:03 PM

    Dr Rory used to shoot with the gentry

    1
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    Mute pat James buchannan
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    Feb 17th 2014, 11:04 PM

    So he should have used it on them

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    Mute joe stodge
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    Feb 17th 2014, 11:54 PM

    Who says an AK47 can’t be a sporting rifle?

    15
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    Mute James McCormack
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    Feb 17th 2014, 11:10 PM

    @Massimo The €10,000 might have something to do with it.

    The above incident happened in Glenties, it used to be a Garda District Headquarters with a station that was manned 24/7
    Shatter has since dissolved the district (Which was the largest in Co. Donegal) and split the policing of it between Ballyshannon and Milford. Both of which are nearly an hour away from Glenties.

    It goes to show how crime levels will rise when cuts are implemented in Policing.

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    Mute Cat Malogen
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    Feb 17th 2014, 11:10 PM

    Tomorrows news: gardai to give back shotgun mistaken for rifle

    39
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    Mute pat James buchannan
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    Feb 17th 2014, 11:14 PM

    Mistaken identity again

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    Mute Michael Looney
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    Feb 18th 2014, 1:35 AM

    Shoot him with it.. Maybe he’ll think twice about having a gun in the first place!

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    Mute Bryan Smith
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    Feb 18th 2014, 6:48 AM

    I’d be getting my rifle images from another website if I were you.

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    Mute youknowimright
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    Feb 18th 2014, 1:51 AM

    Why didn’t we give that hellhole to the Brits when we were have that social clear out years ago. Donegal is a waste of space

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    Mute M Bowe
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    Feb 18th 2014, 8:47 AM

    “Youknowimright”, is your surname “Offmyfeckingtrolly” ?????

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    Mute James McCormack
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    Feb 18th 2014, 12:07 PM

    @youknowinright You have just shown how intellectually inferior you are to everyone else, probably on this planet.
    That is the most ignorant, uninformed comment I have ever seen.
    Everyone here is now a bit dumber for reading it.
    Now go collect your dole and pick up your cans of Dutch Gold you waster.

    8
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