Revenue set a Mayo bonanza over derelict sites levy

Dereliction is set to be taken seriously, modular homes in the back garden are set to be approved, all in the grand scheme of political promises heading into the third year of this government.

Recent posturing has exposed some basic housekeeping that should truly have been in place by now.

An Tánaiste Simon Harris took to Substack to pen his proposals to truly tackle dereliction via the Revenue Commissioners, following on from his predecessor Pascal O’Donohue who last year during the budget announced plans to capture the derelict sites levy at national level.

Our local authorities are to lose out on the projected tax windfall as it will now be collected by the public purse.

Question marks remain as to how the funding will be subdivided, but as local independent Councillor Michael Kilcoyne has warned, whether prophetic or just experienced - "it won't be coming back to Mayo."

Why does this matter so much? Well, we're the dereliction capital of Ireland, of course, with over 14% of all derelict properties in the country. 19,000 is a figure bandied about lately, and of that we possess 14%.

That’s 2,660 properties in Mayo liable for the derelict sites levy.

It's going to be a bonanza for Revenue, and it will also be the end of the road for a number of delinquent property owners who have allowed their properties to fall into rack and ruin amidst a housing crisis.

Indeed, Councillor Kilcoyne has also been most vocal regarding the ghost estate on the Ballinrobe Road in Castlebar, the one RTÉ will have no knowledge of due to the council not responding to the national broadcaster.

That estate has been a sore point for many years, with councillors of all hues regularly raising and querying what is happening.

Of course, we are told that CPOing of property is the last resort, but initiating some hardened stances on such buildings, eyesores and dangers to public health and our environment should see immediate use-it-or-lose-it activation clauses put in place.

Not every property is ideal for the council to take over. It should not be their sole duty to inherit these falling ruins, renovate and return to the market either for sale or to house those on the social housing list.

Many of these buildings could come with more headaches than benefits, but a solution should be sought rapidly.

Mayo County Council should be commended for moves to deal with vacancy and dereliction. Shifting the whole taskforce into the housing section and away from the environmental section, which always seemed a disjointed arrangement, is not before time.

Cabinet ministers have begun to show their teeth regarding dereliction. It's an open goal, but many are left scratching their heads wondering why it has taken so long for government to speak about it.

Talk is cheap; action is required, and if Revenue does take this portfolio of the derelict sites levy over, then we are in for a sweeping change.

Homes will flood the market in due course.

It is hoped, however, that implementation will not rely on self-declaration of a derelict home, as with the vacant homes tax, and that the full rigour of the law will be brought to bear.

In a statement on his Substack, Tánaiste and Minister for Finance Simon Harris said: "I updated Government colleagues on plans to introduce a new derelict properties tax to be administered by the Revenue Commissioners.

“I intend to pass this law this year.

"The Department of Finance, the Department of Housing and Revenue are meeting at least weekly to design this new measure and prepare for its implementation."

Mary Lou McDonald took to social media to bemoan the newfound action by government on dereliction, saying the announcement was "a rehash of their do-nothing proposals" and called on government to "make the owners of derelict properties pay what they owe" and "take real action to bring thousands of boarded-up homes back into use."

Owning a derelict property is now the coldest house in Irish politics.

No party will shoulder you.

It may seem like a common sense approach, but there are major moves afoot — from the Minister for Housing, who initially declared a "war on dereliction," in discussions with me last September, and now Fine Gael, who plan to move levy collection to Revenue.

Will there be a major change in 12 months? Will global headwinds impact construction?

What is certain is that Ireland will no longer be a safe space to hoard, hold onto and allow properties to fall into disrepair while a housing crisis persists.

Common sense has won.