Offaly County Council set to increase developers' contribution payment

OFFALY County Council will have to increase the contribution payment paid by developers in the future, a recent meeting of the body was told.
The Council's Development Contribution Scheme is a system where a payment is required from developers when they are granted planning permission for a new development.
This contribution is used to fund local public infrastructure and facilities, such as roads, schools, and open spaces, which are necessary to support new developments.
Caroline Dempsey, Senior Executive Officer, told a meeting of the Council's Economic Development, Planning and Regeneration Strategic Policy Committee, that work is ongoing on the Draft Development Contribution Scheme 2026 to 2032.
She said there are a number of factors which are being considered while drawing up the new scheme, including the following: Population projections; the potential demand from the Council's capital housing programme; an examination of the existing charges; and various other areas for discussion, consideration and review.

Ms Dempsey also pointed to the Development Contribution Scheme rates of neighbouring local authorities with regards to residential, renewables and wind, which are higher rates than in Offaly.
The SEO pointed out that the rates remained low and static in Offaly over the lifetime of the two previous contribution schemes of 2014 to 2020 and 2021 to 2025.
She said that “such low rates are not sustainable going forward and Offaly County Council is proposing to increase development contributions under this scheme to help cover the actual cost of delivering public infrastructure to support new developments.”
The various sections in Offaly County Council have been asked to prepare a project list for projects that could be considered for funding under the Development Contribution Scheme.
Among the key matters to be considered will be: the Flat Rate per housing unit (regardless of house size) versus a charge on a per metre squared basis; and any shortfalls on the provision of car parking space(s).
In response to Ms Dempsey's comments a number of the Strategic Policy Committee's members expressed their concerns about a number of issues including: An increase in charges for the agricultural sector; higher charges should be placed on the renewable energy and data centres sector; the rising cost of building houses in Ireland; and the need for lower charges for rural houses.
Cllr John Leahy, Cathaoirleach of Offaly County Council, told the Tribune this week that it's his opinion that increasing the Development Contribution Scheme has to be done and it won't have a negative impact on the construction industry in Offaly.
“We can't operate the various sections of the construction industry at a loss,” he remarked. He added that he does have sympathy with those developers constructing houses in rural areas. “They point out that in rural areas the infrastructural improvements funded by the Development Contribution are less than in urban areas. They are right to an extent about this.”
He said there are certain groups which should be compelled to pay considerably higher Development Contributions than the average payment.
“I am talking about Uisce Éireann and their Shannon Pipe which is going to come through Offaly, causing massive disruption; I am talking about the Wind Farm companies; and about ESB Networks. It would be only fair that such large companies should pay higher contributions.”

READ NEXT: Mixed reaction to Uisce Éireann's Lough Derg Pipe report