localnews.ie

Mayo councillor calls for tax breaks for developers and buyers of derelict properties – ‘We need a Government that is serious about dereliction’

By Charlotte Davis, Independent.ie

The inability to tackle dereliction in County Mayo “all comes back to the failure of Government,” according to Castlebar councillor Harry Barrett.

Speaking following a council discussion on the low level of compulsory purchase orders (CPOs) and the limited use of the derelict sites levy in Mayo, Cllr Barrett said local authorities are being criticised for inaction while lacking the resources and enforcement capacity needed to address the scale of the problem.

“At the moment we have Simon Harris blaming councils for not acting on dereliction, but councils will say they don't have the staff to deal with it when they have many other housing initiatives to work on,” he said to the Irish Independent.

His comments follow remarks made by the Tánaiste and Minister for Finance in the Dáil, where he said he was astonished at how little local authorities had done to collect derelict site levies, stating that the Government “do not need to babysit the local authorities. They need to get on and do their job.”

Mr Harris was responding to Mayo TD Deputy Paul Lawless on dereliction in County Mayo. He said the Government was “peeved” with local authorities over enforcement of the levy - a frustration that led to responsibility for the charge being transferred to Revenue to be “dealt with properly”.

While not completely absolving Mayo County Council of responsibility, Cllr Barrett said the core issue lies with how national policy has been designed and resourced.

He argued that without dedicated staff and funding, the derelict sites levy and CPO powers can’t be used at the scale required to be effective.

What we are left with are powerless councils and dereliction not being acted on

A motion passed through the council chamber in January sought the establishment of a dedicated dereliction team in Mayo, tasked with actively pursuing vacant and derelict properties and overseeing both levy enforcement and the use of CPOs.

However, councillors were told the local authority did not have the funding to do so.

“The CEO of Mayo County Council said he does not have the finances. He put it to us that he needed €1.4m to carry out this action, he asked us if we would be interested in increasing the rates in the county to do it,” explained Cllr Barrett.

“This is what councillors face when we try to call for action. What we are left with are powerless councils and dereliction not being acted on.”

He said the failure to enforce existing powers must be viewed in the wider context of the housing emergency declared in Castlebar and across the county, where the council is already stretched trying to ease the crisis.

“It all comes back to the failure of Government to put in place proper penalties for dereliction and on the other side, proper supports to bring these units back into use,” he said.

While welcoming measures such as the Vacant and Derelict Property Grant, Cllr Barrett said these initiatives are limited in their impact when property owners can continue to hold onto derelict buildings without consequence.

In an effort to strengthen enforcement beyond the derelict sites levy and CPOs, Mayo County Council has also passed a motion calling on the Government to explore introducing legislation that would allow councils to use Compulsory Sale Orders (CSOs) in cases where properties remain derelict despite engagement and enforcement efforts.

We need a change of Government to move this; it is as simple as that

Cllr Barrett added an amendment to that motion seeking tax reliefs for both developers refurbishing derelict properties and for young couples purchasing them, arguing that enforcement must be matched with incentives if properties are to be brought back into use.

“If that’s done, it’s a no-brainer. Councils can’t do this on their own. We need far more input from the Government, and that is where the failure lies,” he said.

He argued that his proposal would ultimately cost the State less than continuing to rely on rent support.

“You might say that it will cost the state a huge amount of money, but look at what the state is giving out in the Housing Assistance Payments and Rental Accommodation Scheme at the moment,” he pointed out.

Cllr Barrett said the consequences of weak enforcement are now clearly visible across Mayo, despite an ever-growing housing need.

“[The Government] are failing right across the board. They are not building the required number of houses they need to build per year, rents are at an all-time high - [they are] at extortionate rates - and we are left with thousands of buildings that are left in a derelict state,

“We need a change of Government to move this; it is as simple as that. Councils alone can’t do it, councillors can’t do it on their own. We need a Government that is serious about dereliction,” he said.

Cllr Barrett highlighted the low level of CPO activity, both locally and nationally, and said the figures illustrated the scale of the enforcement gap and shows how limited current resources are.

Department of Housing figures show that 120 CPOs were completed nationally in 2023 under the Housing Act 1996 and the Derelict Sites Act 1990, rising slightly to 136 in 2024.

In County Mayo, one CPO was completed in 2023 and 10 in 2024.

This Government is ideologically wedded to the status quo

“That tells you they are not laying a glove on people who are sitting back watching their assets grow,” Cllr Barrett said.

“People bought properties at knock-down prices after the financial crash, and they’re still sitting on them, leaving them derelict, not developing them - while young couples are paying [up to] €1600 a month in rent,

“This Government is ideologically wedded to the status quo - making sure that people who are sitting on these assets that are increasing in value all the time aren't punished,” he said.

While welcoming the transfer of responsibility for the derelict sites levy to Revenue as “a step in the right direction”, Cllr Barrett warned it would fail unless it is properly staffed and enforced.

“They have a Derelict Sites Act that they never resourced with proper administrative staff. Unless you staff up a policy that you bring out, it’ll never work. Local authorities could never get a grip on dereliction because of the extent of it,” he said.

His final call was for the Government to take a more creative and proactive approach to addressing dereliction.

“That’s the creative thinking they need to bring to this because at the moment it’s static in the county, derelict properties aren’t moving,” he said.

This article has been funded by the Local Democracy Reporting Scheme.