The Construction Industry Federation (CIF) has warned Wicklow County Council that business people, including housebuilders, will look to other counties, unless a "locals only" policy in the county development plan is dropped.
The policy restricts the sale of new houses in smaller towns and villages to people from Wicklow. It does not apply to the larger urban areas such as Bray, Greystones, Wicklow and Arklow.
However, the CIF, which represents construction companies, said the policy must be scrapped and warned that unless "a more coherent, rational approach is adopted, business people, including housebuilders, will look to the more stable planning and business environment that applies in neighbouring counties."
According to Mr Martin Whelan, the CIF secretary in the area, builders will not finance schemes in the county while the policy continues.
He said the policy, which has already been applied to new houses in Blessington, could make it difficult to sell second phases of development there. He added that financial institutions had warned builders of their exposure, pointing out that "houses will become more difficult to shift". Mr Whelan said the restriction should be seen in the light of development levies in Wicklow which were among the highest in the State and which would add about 5 per cent to the price of a house.
"The development charges will also affect commercial and industrial development and will no doubt act as a disincentive to people seeking to start small commercial or industrial enterprises in the county," he added.
The CIF warning follows recent comments by the Industrial Development Authority that it would not direct new industries to Wicklow unless clarity and certainty were brought to the policy on development levies.
The "locals only" policy was adopted by the council in September 2001, as an amendment to the 1999 County Development Plan. It is also part of the current draft of the next Wicklow Development Plan, expected to be adopted next year.
