Fine Gael favours fairer compensation scheme for landowners - National Development Plan delays more costly Fine Gael's Deputy Finance Spokesperson, Paul McGrath, said today "that the controversy between I.B.E.C. and the I.F.A. regarding the delays in proceeding with major infrastructural projects is a timely debate. The reality is that the National Development Plan has already fallen significantly behind. The Department of Finance has also confirmed that, because of increased building costs, it is likely that in the first 3 years of the development plan NDP costs will have risen by 52%. Fine Gael proposed amendments to the Finance Bill this year, which would have exempted land transactions from Capital Gains Tax, where the lands involved were subject to a proposed Compulsory Purchase Order. "Land purchase represents a small proportion - about 4% - of the present full cost of road developments," says Deputy McGrath. "This means that on the proposed Kinnegad to Athlone project the total cost of acquiring the land would be about £8 million. This is particularly low figure when compared to land costs for housing or other commercial developments," says McGrath. "Fine Gael is now drafting a Private Members Bill that contains the following proposals," says McGrath. Proceeds from the sale of land to a statutory authority to facilitate infrastructural development would be exempted from Capital Gains Tax where the landowner has agreed a deal within 6 months of the proposed CPO being tabled. That the price paid would be market value 'plus x percent' to compensate for inconvenience. That compensation will be paid for all land acquired at this rate including land taken for road sidings and margins. That landowners would have a right to increased compensation if, after 5 years, the surrounding lands have increased in value as a result of the infrastructural development. Local Authorities and other statutory bodies will be required to pay promptly and failure to do so will mean an additional penalty payment to the landowner. Where there are problems with legal title the State would bear the legal cost of resolving the title issue. Where the infrastructural development takes the form of a Public Private Partnership (PPP) the landowner who disposes of land will be given a share option in the PPP. Delays in infrastructural development could hamper continued economic growth in a very costly way and all reasonable steps must be taken to speed up the proposals in the National Development Plan. However, the co-operation of the Farming Organisations and landowners is vitally necessary in the national interest. Return to Media Centre

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