Greens demand windfall tax on developers for Nama support

GREEN PARTY Ministers are insisting on the introduction of a windfall tax on property developers as “an essential and indispensable” corollary of the Nama legislation.

At a lengthy special Cabinet meeting, the two Green Party Ministers told their Fianna Fáil colleagues the windfall tax would have to accompany the Nama legislation, The Irish Times has learned.

It was the third Cabinet meeting in four days on the Nama Bill and agreement on a windfall tax is now regarded by the Greens as vital for the passage of the legislation.

“The introduction of a windfall tax is an essential and indispensable part of the Nama initiative,” said a senior Green Party source. He added that while the Greens did not expect the tax would be part of the Nama Bill itself, it would have to be an accompanying measure.

“It is indispensable part of the initiative and it is also an indispensable part of winning public support for the Nama approach, so that people can understand that this is not just a quick fix but a long-term reform that will benefit people in years to come,” added the party source.

The Green Ministers have been insisting to their Fianna Fáil colleagues that they have to ensure that their agreement to Nama does not result in the culture of speculation that dominated Irish life in recent years starting up all over again when the banking crisis is over.

“We are looking for agreement on a simple measure that would ensure that when the value of land is enhanced by the action of Government it should not go into the pockets of speculators.

“What we have in mind are decisions on rezoning or the implications of taxpayer-funded initiatives like the Luas project,” said the Green source.

He added that the windfall tax measure envisaged by the Greens would involve the bulk of any such enhanced value being paid over to the exchequer.

The Greens are aiming to achieve the objectives of the Kenny Report of the 1970s, which proposed a maximum premium of 25 per cent on the price of development land over agricultural value.

The Greens are hoping agreement on the tax can be reached at next Wednesday’s Cabinet meeting so party members can be told at a special conference in Athlone next Saturday to consider the Nama legislation.

Last year, Green Party leader John Gormley told local authority planners of his intention to bring in new legislation to tap into windfall gains made by landowners and property developers. Speaking after he delivered the keynote address at the Irish Planning Institute annual conference in Westport, Co Mayo, Mr Gormley said he believed the Attorney General had found a way around constitutional difficulties with windfall taxes.

The Minister said there was a consensus building around the need for developers to contribute more.

“We have to think of the common good,” he maintained.