Government Continues to Ignore Problems in Local Authority Funding
Chambers Ireland Publishes Fourth Review of Development Contributions Schemes
Research published by Chambers Ireland today (24/01/08) has revealed that income from development contributions in 2006 constituted €0.67bn–an increase of almost 30% on the 2005.
Hilary Haydon, Chair of Chambers Ireland’s Ratepayers Council said, “Local authorities have come to depend on income from development to fund capital expenditure programmes. The record level of house completion achieved in 2006 (88,000) is not sustainable and it is vital that any drop in income from development contributions resulting from the decline in construction activity does not affect major infrastructural projects such as the Metro or Navan Rail Link.”
“€2.1bn of the National Development Plan (NDP) funding is earmarked to be derived from development contributions. It remains to be seen if these will be achieved. If vital infrastructure is delayed because of a shortfall in these contributions the State will not be held accountable,” he said.
David Pierce, Chambers Ireland President said, “If local government is to continue to deliver a quality service to all consumers, both domestic and commercial, change is essential. The Small Business Forum Report identified business as fulfilling the role of “funder of last resort” and called for a review of the financing of local authorities. This problem will not be solved until central government accepts this analysis, and implements the recommendations of successive reports – local government needs a new funding mechanism,” he concluded.
For further information, contact Jessica Dempsey, Press & Communications Officer, Chambers Ireland on 01-4004303 or email jessica.dempsey@chambers.ie. © Drogheda Chamber of Commerce 2006. All Rights Reserved. |
