Orders facing loss of ?2bn if building on lands blocked

Monday January 31st 2005

RELIGIOUS institutions could lose up to ?2bn and be forced to shut down schools and hospitals in Dublin and the provinces if Dublin City Council tonight carries out a plan to ban any private housing on religious properties.

Many of the institutions have warned they will be left with no choice but to close unless the councillors change their minds at the last minute.

"Many of the institutions envisage that in the short-term they will have to cease operating community and educational services and, in the long term, the institutions themselves may have to cease, resulting in a loss to the city," City Manager John Fitzgerald has warned.

If the council goes ahead its decision will wipe billions off the value of religious-owned school land throughout the Dublin area.

The Conference of Religious in Ireland (CORI) and the Archbishop of Dublin's property trustees say such a move would be unconstitutional.

Compensation claims running to hundreds of millions could be lodged.

Councillors face a series of eleventh-hour motions for a U-turn. There were indications this would happen in the face of dire warnings that religious institutions would be forced to close schools and private hospitals.

Mr Fitzgerald has warned councillors of the seriousness of the situation.

He said it would also have a detrimental impact on the proper planning and sustainable development of the city with the possible loss of a range of community, educational, medical and religious facilities and services.

He is urging councillors to change their minds and allow the institutional land to continue to be zoned for potential development.

The religious institutions own large land banks throughout the city, much of it located in the Dublin 6 area. These are currently zoned with the potential for private development.

There is believed to be at least 800 acres of prime development property in the land banks.

Councillors drawing up the new draft development plan voted in September to allow only social and affordable housing and to ban any normal private housing.

The institutions in their submissions have pointed out that until now they had been able to secure loans on the strength of the potential value of their lands. This cash was then invested in their primary and secondary and third level schools, religious orders, private hospitals, health and community facilities.

Scores of objections were sent to the council by the religious institutions objecting to the proposed change.

The institutions have also warned that reserving the lands for social and affordable purposes only was unconstitutional.

Mr Fitzgerald said the council had sought a legal opinion on the change and found it was ultra vires, above the legal power of the council.

Treacy Hogan
Environment Correspondent

? Irish Independent