Ministers urged to act on derelict State properties

The Cabinet has been warned by the Ministers of Finance and Housing that urgent action is needed to address the significant amounts of derelict property under State ownership.

In a letter sent yesterday to their fellow Ministers, Simon Harris and James Browne urged their colleagues to draw up plans for derelict properties under their department's ownership or under the ownership of state agencies under their department's aegis.

Mr Harris and Mr Browne warned that ifthe properties remain derelict, they could become liable for the new planned derelict property tax, which would give rise to further instances of one arm of the state charging another for allowing a property fall into dereliction.

This would "reflect negatively on Government as a whole", the ministers warned.

The letter follows strident remarks by Tanaiste Simon Harris last week when he said local authorities had "not done enough" to tackle abandoned buildings by chasing derelict site levies and so, he was introducing a new Derelict Property Tax in 107 cities and towns across the State instead.

The comments provoked sharp criticism from opposition politicians while the Association of Irish Local Government argued local authorities had done plenty to tackle the issue.

In the letter, seen by RTÉ, the Ministers state: "we are aware that there are significant amounts of derelict property under State ownership and we are seeking urgent action in relation to this.

"It is not a satisfactory situation to have unused State property lying idle, negatively impacting on its environment, when it could provide much needed housing, community, public or commercial space.

"As a Government, this is not a situation we should be willing to tolerate."

The letter outlines how the new derelict property tax will be brought forward in the autumn Budget and will "be the greatest change to the treatment and management of dereliction since the Derelict Sites Act was introduced in 1990".

The Ministers confirm the rate of the tax is yet to be determined but it won't be lower than the rate of the existing levy of 7%.

Read More: How the State ends up fining itself over derelict sites

Mr Browne and Mr Harris urge their colleagues "to consider your full property portfolio strategically. Please also bring this letter to the attention of any agencies and/or bodies under your department's aegis that may own State property, as any derelict properties owned by them may also be liable for the tax."

They say departments must consider several options including bringing the property into a usable state, transferring it to another State body which may have an alternative use for it, selling it on the open market or seeking its demolition/clearance.

"We are asking you to put a plan in place for every derelict property you are responsible for," the correspondence states.

"If these properties remain derelict, and are considered liable for the tax, Public Service Bodies will be required to pay the tax due.

"This will add pressure to their financial management, may impact on service delivery, and offers poor public service value. It also reflects negatively on Government, as a whole," it continues.

It says that if a property is uninhabitable, unusable or dangerous, then it will be considered derelict.

The new tax will apply to residential and commercial property as well as property that is neither, for example, former community buildings, educational facilities, public health clinics and garda stations.

Last week, Sinn Féin leader Mary Lou McDonald said the proposals for the new tax will not deal with the problem of dereliction head on.

The Labour Party leader dismissed the Government's "war on dereliction" as face-saving "spin", in a tactical bid to distract attention away from its failure to tackle the issue for many years.