Abolishing the 80% windfall land rezoning tax could result in a return to the corrupt development model of the Celtic Tiger era, the Green Party has warned.

The party believes instead of abolishing or lowering the tax, the Government should reform it, and ensure that any revenues raised go directly to local authorities.

Green Party Leader Eamon Ryan said: "The Government should not yield to calls for a reduction or abolition of the rezoning windfall tax. Doing so would signal a return to the corrupt development model that got us into so much trouble in the first place, and there is no evidence the measure is holding back housing supply. 25,000 hectares of land is already zoned across the country, and as a result is unaffected by the current regime.

-- Advertisement --

"If there is to be any change to be made to rezoning taxes, it should be the redirecting of windfall profits straight to local authorities. This would re-energise local government, and mean that people see the benefits of land rezoning decisions in their own community.

"The four Dublin authorities may rezone as much as 100 hectares of land each over the next five years. That could lead to a profit of some €1 billion, as the relevant land went from agriculture use values of around €10,000 per acre, up to €1 million an acre as development land. By holding our nerve and reinvesting some the relevant windfall profits back into the local authorities, the city could stand to benefit from €800 million in additional public spending."

(CD/MH)