GALWAY CITY Council officials have been accused of being "out of touch with reality" over plans to increase charges levied on developers by more than €4,000 for each new house or apartment they build.
Auctioneers insist the move, if passed by the council, could halt the construction of estates and houses in the city as developers continue to feel the squeeze from a declining market.
At a meeting at City Hall, officials made the case for increasing charges from €10,370 to €15,000 for small houses and apartments, from €11,690 to €16,000 for semi-detached houses, and from €13,000 to €17,000 for larger homes.
Increases in the cost of providing infrastructure such as roads and sewage systems are said to be behind the plans to increase the charges, which were introduced four years ago.
Auctioneers have expressed amazement at the proposed increase in charges, given the stark decline in the property market in recent months.
"This is a totally inappropriate time to be increasing contributions when it is known that builders have come back on prices in order to sell property," said Colm O'Donnellan, of O'Donnellan and Joyce Auctioneers. "A lot of builders are just trying to survive."