The fall in new builds throughout Ireland could substantially impact on Ireland's council revenue.

Developers paid almost €700m to the Republic's councils in planning fees in 2007 and the downward trend in house building will have a huge impact as a major form of revenue used to fund general public services under their jurisdiction.

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Local authorities collected a record €671m in development contributions when house building reached an all-time peak of 88,000 new homes in 2006.

Analysts suggest that this year will see a drop in house building by up to half, meaning a tough year for developers and councils alike.

As house building accounted for around two thirds of all development in the Republic in 2006, the fall off will wipe out a high proportion of the cash collected from builders.

According to the Construction and Industry federation, developers can pay the local council anywhere between €7,000 and €15,000 for each home they build.

(DW/JM)