Mepa fees 'bad for construction industry'

The Chamber for Small and Medium Enterprises, GRTU, yesterday expressed its disbelief at the planning authority's "exaggerated fees" which it said dealt a blow to the construction industry.

The GRTU said the latest government statistics on GDP showed the construction industry was still in recession even though other industries appeared to be recovering.

It made no sense for the government to make it more difficult for industry employers when they provided facilities for the country's development, employed thousands of workers and brought millions of euros in tax to government coffers.

It could not understand the contradiction in the government's policy towards industry and development, saying it was not right for some areas to be preferred over others.

The opposition also said in a statement that the new fees confirmed the public was paying for the inefficiencies of the current government. It added that the fees were "socially unjust" and would continue to burden families and young people.

The most substantial increases were 600 per cent for compliance certificates, 1000 per cent for garages and 400 per cent for development notification orders.

This was happening at a time just after Austin Walker had justified his €93,000 annual salary for chairing the authority, by describing himself as a "luxury car".

The government rebutted the PL's claims last night, saying that it had planned to raise Mepa fees itself when it was in power.

It said the revision had taken place because it was necessary for Mepa to be financially self-sufficient rather than relying on tax money for it to be financed. The fees had been worked out in such a way to be affordable according to people's budgets.

Fees for building applications will be going up as from July 16, with the planning authority charging developers by square metre rather than the standard fixed fees that have been in place for the past 17 years.

The fees are aimed at helping the authority collect an extra €6 million annually which it has received in government subsidies so far.

Under the old building levies, one apartment - of any size - cost a standard rate of €162.79. Now, developers will be charged €1.24 per square metre, which would add up to €186 for 150 square metres of floor space.

An application for a detached villa used to cost €2,300 per unit but will now be charged at €7.29 per square metre - adding up to €2,916 for a 400-square metre property.

The fees will come into force through a legal notice and fulfil a government promise made in Budget 2010.