The planned replacement of the derelict sites levy has been criticised by Dublin City Council chief executive Richard Shakespeare, who said it would be “fanciful” to assume funds generated by a new tax will be directed to local authorities.
Speaking at the reopening of St Patrick’s Tower in the Liberties as an event and exhibition space, Shakespeare said a €1 million refurbishment of the structure was funded through derelict site levies collected in Dublin 8.
“Things like this will no longer happen, because the derelict site tax will now go straight to the exchequer,” Shakespeare said.
He noted that local authorities had been able to reinvest income from the levy in to the areas it was generated in.
“Now, that ability will be gone with the derelict site tax,” he said.
Asked if he was unhappy with the Government’s decision to replace the levy, he said: “You’re never happy when you lose the opportunity to work on good projects like this.”
He said the local government “sector” is unhappy with the move and it would be “fanciful to assume” revenue collected from the incoming tax “will find its way to Dublin City Council or any local authority”.
Accepting long-standing “issues around collection” of the levy, Shakespeare said charges on the properties meant the levies were collected once they were sold or once the issue reached the courts.
Local authorities collected more than €2.9 million last year in levies, with Dublin City Council collecting €1.3 million of this, according to figures published by the Department of Housing earlier this month.
However, more than €35.6 million in levies remained outstanding by the end of the year. Dublin City Council was owed some €9.3 million of that total.
Shakespeare said the council had worked hard to remove properties from the register and tackle dereliction by encouraging owners to bring them back into use.
“I don’t know whether this will be the same in terms of the derelict site tax,” he said, adding that he believed there “won’t be a material link in terms of cause and effect”.
Once the 7 per cent tax comes into effect, local authorities will remain responsible for identifying derelict properties, while Revenue will be in charge of collecting taxes due.
First payments are not expected to be made until June 2028 after preliminary registers of derelict properties are published by councils next September. Any derelict site levies outstanding once the new tax comes in to effect will remain the responsibility of local authorities to collect.
The refurbishment of St Patrick’s Tower, which had been unused since 1860, came at a cost of about €1 million and was fully funded by Dublin City Council.
Noting that the structure, once a windmill, was built in 1757, Fiach Mac Conghail, chief executive of Dublin’s Digital Hub, said conservation works accounted for much of the cost.
Mac Conghail said the Digital Hub was “very proud” to bring the “much-needed” venue back into use.
Lord Mayor of Dublin, Daryl Barron, commended Shakespeare and his team for “the vision to support such a worthy endeavour”.
“St Patrick’s Tower is a wonderful example of how historic buildings can be given new purpose and become an active part of the city once again,” he told attendees.
The venue, which can accommodate up to 50 people, will host its first official event in November as part of the art and technology-themed Beta Festival.