Report of the Local Government Efficiency Review Group

13.1.11 The Group considers that the planning fee levels set by the Department of
the Environment, Heritage and Local Government should be revised to
allow for a greater recovery of administrative costs for different types and
scales of planning applications, subject to verification that the approach
towards processing planning permissions accords with good and efficient
administrative practice. Further details on this recommendation are
provided in section 10.4 above.
Development Levies
13.1.12 While not strictly within its terms of reference, the Group thought it
appropriate to comment on the issue of cost recovery as it applies to
development levies.
13.1.13 The adoption of individual development contribution schemes is a reserved
function of the locally elected members of each planning authority. It is a
matter for the elected members to determine the level of contribution and
the types of development to which they will apply as provided for in planning
legislation. The general intention of the schemes is to ensure that the cost of
providing the range of infrastructure (water, waste water, roads, community
facilities, etc.) that supports development does not fall to the Exchequer
alone.
13.1.14 The Group notes the wide variation (ranging from €2,000 to €20,000) across
authorities in the level of contribution being adopted. In many local
authorities, the development contribution rate falls well short of providing a
meaningful contribution to the costs of the infrastructure needed to support
development. Given the difficulties in the public finances, the Group
recommends that this matter be addressed by the Department of the
Environment, Heritage and Local Government through, for example, issuing
binding statutory guidance to local authorities on the approach to be taken
in setting the level of development contributions.
Commercial Rates
13.1.15 The Group also considers that the user pays principle, as well as basic
issues of fairness and equity, also require that a series of exemptions and
anomalies in the commercial rates base be addressed.
13.1.16 The Commission on Taxation argued that State properties currently
exempted from commercial rates such as Government offices, Defence
Forces and Garda properties, prisons, HSE administrative offices and the
constituency offices of TDs, Senators and MEPs, should be brought into the
rates system. While it might be argued that ending exemptions from State
bodies simply amounts to a circular flow of money with one set of public
bodies paying another set of public bodies, the Group believes that there
would be an efficiency gain for the Exchequer from such a change. In
particular, it would encourage State agencies and Government Departments
to examine regularly their property portfolios and incentivise more efficient
asset management practices.
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