Dublin City Council owed more than €90m in unpaid developer levies
Dublin City Council (DCC) is currently owed more than €90m in unpaid developer contribution fees, and that figure has risen by more than 60pc in the last five years.
The sum came out of a presentation by Máire Igoe, executive manager in DCC’s planning department, to councillors on the authority’s Finance Strategic Policy Committee.
At the end of July, DCC was owed €96.7m through unpaid section 48 developer contribution fees, which are paid to local authorities and fund local services such as roads, water and lighting.
Developers in the DCC area pay a rate of €117 per square metre of residential development, and €122 for commercial and industrial developments.
A council spokesperson said this form of debt sat at €58m at the end of 2020, meaning it has surged by more than 60pc in the last five years.
Councillor Dermot Lacey, who sits on the council’s Finance committee, said the rise reflected increased development in the city over the last few years.
However, he added that the council should be doing “everything possible” to collect the funds owed.
“We need all the funds we can get,” he said.
When asked about the methods by which the council recoups those funds, the spokesperson said owed debt was pursued in line with its debt collection procedure, but further details were not forthcoming.
About half (€48.5m) of the currently owed funds are classified by the authority as administrative debt, which is due to be paid back through regular administrative processes.
Ms Igoe said the government’s temporary waiver on residential development contributions was an example of this, with €16.3m outstanding for this type of debt.
This is a scheme introduced in April 2023 where local authorities waive their development fees for residential projects in order to incentivise housebuilding.
These lost funds are due to be recouped by government at a later date.
About €33.8m, or 35pc of the total, is classified as actionable debt, which Ms Igoe said was the main focus of the department on a daily basis.
Historic debt, consisting of unpaid development contributions from more than 12 years ago, represented €10m.
This is pursued for immediate payment, although the spokesperson said some of this may not be due, requiring further investigation or site visits to clarify the level owed.
The remainder of the owed debt, or about €4.4m, can be traced to restructured phased debt, or arrangements put in place with developers to extend the amount of time they have to pay the council.
“These arrangements are put in place with the developers to make it financially possible for them to get the development off the ground, especially if the development contributions is a bit of an impediment,” said Ms Igoe.
The spokesperson said the total level of owed developer contribution fees to the council had reduced to €93m since the meeting two weeks ago.
A review of the section 48 scheme by the council is under way, with an updated draft scheme set to be unveiled in December.