Donegal is set to have the lowest development charges in the State following a heated meeting yesterday where councillors rejected proposals for a Development Contribution Scheme charge of €6,300 per residential unit.
However, they voted to retain existing development charges that range from €887 to €2,791 for new residential properties and to €4,696 for holiday homes. The amount varies depending on the area concerned, with charges generally higher in towns.
County manager Mr Michael McLoone, who had proposed the new charge, warned that not introducing the scheme as proposed could have a negative impact on future infrastructural projects. He said over €432 million had been spent on infrastructural projects in the county over the past five years and he was targeting an increase in capital expenditure of between 50 per cent and 70 per cent over the next three years.
"We can only sustain this programme if charges can be raised through this contribution scheme," he said.
He added there was "a particularly urgent demand for the provision and upgrading of water and sewerage services" in the county.
Criticising Mr McLoone's proposals, Cllr Bernard McGuinness claimed that they were "another from of taxation", and expressed concern that the charges would later rise.
Councillors argued that the proposed new charge would represent a major additional burden on young people hoping to build or buy their first homes.
They voted in favour of adopting the existing charges as the new Development Contribution Scheme.
They also agreed that agricultural buildings would be exempt from development charges. Several councillors expressed concern that Donegal County Council was still owed around €4.7 million in development charges. Provision was made for a review of the charges later this year.
Earlier, both Sinn Féin and the Irish Farmers' Association picketed outside the meeting in Lifford.