Call to scrap Metro North levies

A NORTHSIDE councillor is considering referring the controversial collection of development levies for Metro North to the office of the Ombudsman.

Since 2007, a levy has been imposed on new residential, commercial and retail developments built along the proposed route for the Metro North light rail project, which runs from St Stephen’s Green to Lissenhall in Swords.

The levy has continued to be collected despite the project being shelved in November 2011 with no date as to when, or even if, it will go ahead.

The levy is operative for a period of 30 years and will continue to be charged unless the project is officially cancelled. The next review is due to be carried out in 2015.

If the project is cancelled, the contributions will be refunded to those who paid them. Until then, the over

?¬17 million collected so far by Fingal County Council and Dublin City Council will sit in an unused bank account.

Buyers of residential developments along the route in the Dublin City Council catchment area currently pay a

?¬2,940 (per unit) contribution towards the deferred transport scheme, while the levy imposed on commercial and retail developments is

?¬25.87 to

?¬37.28 per square metre.

However, a recent report recommended reducing the levy due to lower property prices and construction costs if the rail system is built.

Dublin City Council is now expected to cut the levy on residential developments to

?¬2,000, commercial properties to

?¬20 per square metre and retail developments to

?¬30 per square metre.

Fingal County Council amended its contribution charge on April 9 to

?¬2,000 per residential unit,

?¬20 per square metre for commercial properties and

?¬43 per square metre for retail units.

Earlier this month Cllr Mary Fitzpatrick (FF) submitted a motion to Dublin City Council calling for the levy rates to be reduced to zero until the project is back on track. The motion was rejected but councillors agreed on proposals to reduce the rates.

However, Cllr Fitzpatrick believes the levy is unjust and is considering referring the issue to the Ombudsman.

“Dublin City Council has already collected more than

?¬3 million under the scheme – a

?¬3 million take out of the city economy, lodged in an account and rendered unproductive,

? she said.

“The levy scheme states that the Metro North was to be completed in 2012, which clearly did not happen.

“Yet, despite that, Labour and Fine Gael councillors are persisting with supporting the collection of these unjust levies.

?

Dublin North West TD Róisín Shortall (Lab) welcomed the proposals to reduce levies but is calling for refunds for those who have already contributed.

“Any reduction in the development levy is welcome news,

? she said.

“I have had people contact me who have paid bills of over

?¬2,500. They are not developers or speculators. They just wanted a home to live in and had to take out bigger mortgages to cover the costs of the levy.

?

Fingal County Council confirmed that it has collected a total of

?¬13.5million in Metro North levies.

“The scheme is operative for a period of 30 years and accordingly, whereas the project was deferred (not cancelled), the scheme was not,

? a spokesperson said.

“This remains the case pending further clarification from the Minister/NTA. The project is subject to review by the Minister in 2015.

?

A spokesperson for Dublin City Council said:

“A total of

?¬3,901,726.85 has been collected by the council on behalf of the RPA in respect of the Section 49 Metro North Scheme. The monies are held separately.

?