State could lose out on over €1bn in zoning windfall: Greens

News

The Green Party has called for the reinstatement of an 80% 'windfall tax' on lands rezoned for housing purposes. It has warned that the State could lose out on over €1Bn in revenue if it fails to take action. The call comes as a new report prepared by Dublin City Council suggests that 270 hectares of industrial lands in Dublin's inner suburbs may be rezoned to allow for housing. Councillor Ciarán Cuffe the Green Party's candidate in May's European elections said:"Back when the Green Party was in Government we ensured that an 80% tax was put in place on land zoning profits. This helped to curb speculation by imposing a tax on profits from land rezoning. However Fine Gael under pressure from developers repealed this part of the NAMA legislation. The provisions were contained within Section 649 B (3) of the National Asset Management Agency (NAMA) Act 2009, but were terminated by Section 31 A (ii) of the Finance Act 2014."Dublin City Council is proposing rezoning certain lands such as the Dublin Industrial Estate located beside Broombridge Junction on the Luas Cross City line. This is a golden opportunity to provide affordable housing beside high quality public transport links. However, without the rezoning tax the lands will increase significantly in value once rezoned and the bulk of the profit will go to the developer rather than the State. This means less affordable housing."Back in 1973 the Kenny Report urged the State to ensure windfall profits from development did not go to speculators. One of the few measures in recent times that ensured this could happen was repealed five years ago by Fine Gael. It is time to reinstate it. Fine Gael must ensure rezoning profits go to the State rather than line speculators' pockets."At Dublin City Council's last monthly meeting Assistant Chief Executive Richard Shakespeare proposed the rezoning of 270 hectares or 45% of the total Z6 lands in the city. This will double the value of the land perhaps from €6m to €12m a Hectare. It would be shameful if the State was to lose out on a potential €1.3Bn in revenue from this rezoning. Failing to act will make housing unaffordable.Note to the Editor:Link to 'Dublin City Council Update on Review of Industrial Lands (Z6/Z7) in the City' http://bit.ly/2JkwXapIssued 19th March 2019, uploaded 26th March 2019

published

March 26, 2019

cover image

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.