Ministers Warn Cabinet on State-Owned Derelict Properties, New Tax Looms
Ministers Harris and Browne warned the Cabinet about derelict State-owned properties, urging urgent action. They cautioned that a new derelict property tax could force State bodies to pay each other, negatively impacting the Government. The tax, set for the autumn Budget, aims to address unused properties and will be at least 7%.
Ministers Simon Harris (Finance) and James Browne (Housing) have warned the Cabinet that urgent action is needed regarding significant amounts of derelict property under State ownership. In a letter sent yesterday, they urged colleagues to plan for properties owned by their departments or associated State agencies.
The ministers cautioned that if these properties remain derelict, they could become liable for the new planned derelict property tax. This would result in one arm of the State charging another, reflecting negatively on the Government. This follows Mr. Harris's remarks last week, where he criticized local authorities for insufficient action on abandoned buildings and announced the new tax for 107 cities and towns.
The letter, seen by RTÉ News, emphasizes that unused State property negatively impacts its environment and could provide much-needed housing, community, public, or commercial space. The new tax, to be introduced in the autumn Budget, will be the most significant change to dereliction management since the 1990 Derelict Sites Act. The tax rate is yet to be determined but will not be lower than the existing 7% levy.
Departments are asked to strategically review their property portfolios and inform agencies under their aegis. Options include making properties usable, transferring them to other State bodies, selling them, or demolishing them. Public Service Bodies will be required to pay the tax if properties remain derelict, adding financial pressure and impacting service delivery.