Overrule of voluntary status costs UL €154,000

A DECISION BY the board of An Bord Pleanála not to confer voluntary status on the University of Limerick (UL) has cost the university more than €150,000.

This follows the board's decision to overrule its inspector's recommendation to exempt UL from paying €154,000 to Clare County Council. The board ruled that Clare County Council had properly applied its development contribution scheme in the case.

Earlier this year, UL had secured planning permission for the development of an Irish World Academy of Music and Dance Building at Garraun, Clonlara, Co Clare. The accommodation is to include two performance theatres, music practise rooms, computer and research suites and supported by studio classrooms, academic and administration offices.

The centre will accommodate 250 students from 25 countries.

However, as part of the decision, the council ordered UL to pay €304,000 in development contributions. The university appealed and argued that the development scheme has not been properly applied, that UL was a voluntary organisation and that the university was registered under a charity trust.

The appeal also said the development was not for profit or gain and would be a major contributor to the social and educational life of the campus and area.

The university stated that UL's voluntary body status was accepted by the Revenue Commissioners and the centre would be used by the people of Clare and Limerick and also by students.

The university also argued that it was dependent on voluntary donations and the demand for contributions would impede the viability of the project and contradict the spirit of and letter of the scheme by imposing commercial levies on a non-commercial voluntary work.

However, the council argued that the development was not a voluntary development as it would provide for taught courses for which fees would be paid and was considered a commercial enterprise by a private body.

The council also said concerts and exhibitions would be held which would generate revenue through ticket sales and that the development would be connected to existing public water and sewerage schemes.

In his report, the board inspector found that the term voluntary oganisation was not defined in the Planning and Development Act, 2000, but said it appeared that UL came within the remit and that a full exemption should apply. The inspector also ruled that UL should be exempt from contributing a further €150,000 in special contributions towards upgrading the local road network.

The board said it did not accept that the University of Limerick came within the scope of the exemptions for voluntary organisations in the Clare County Council development contribution scheme and considered that the terms of the scheme had been properly applied by the planning authority in this case.

The board however ordered the removal of the demand for the special contribution as UL had already contributed €500,000 to serve a related development at the Co Clare campus.