Sir, – In many respects one has to marvel at the ability of the construction industry to influence Government policy (Arthur Beesley, "Builders may not have to pay levies on starter homes", Front Page, September 29th).
The proposal to exempt builders from paying development levies in regions where there are property shortages raises many fundamental issues about local government funding. The issue of levies has been debated for many months, with the construction industry consistently calling for significant cuts in the levies. However, as far as I am aware it has not once identified where the funding shortfall should come from to provide essential infrastructure like sewerage, roads, lighting and paths. The report seems to suggest that the Department of Environment and Local Government does not have the resources or the scope to make up what would be a significant shortfall in revenue. So essentially what this means is the existing income streams in local authorities, ie commercial rate and property tax revenue, will be used to essentially subsidise construction. Reports that officials are assessing whether local authorities have the scope to reallocate funds all but confirm that the €100 million or so shortfall from the levies will have to be made up by commercial rates and property tax revenue.
So if this proposal does become Government policy, householders in Fingal and other local authorities will see a significant impact on service delivery, which may mean less money for essential projects such as flood relief, road safety and community infrastructure. – Yours, etc,
JUSTIN SINNOTT,
Swords, Co Dublin.