Spectator on facebook

Spectator on facebook

Fee has a negative impact

Practice shows that municipalities will require investors to pay the fee for development from their own budgets and at the same time to also cover the so-called induced investments.

Some municipalities want to re-think the fee. (Source: SME)

The local fee for development, collected by some municipalities, is a non-systematic measure created without expert discussion, according to the Association of Construction Entrepreneurs of Slovakia (ZSPS).

Except for the drop in engineering construction, which includes building roads and railway infrastructure, insecurity across the sector is deepening, the association claimed, as reported by the TASR newswire in January 2017.

Practice shows that municipalities will require investors to pay the fee for development from their own budgets and at the same time to also cover the so-called induced investments. This includes the construction of infrastructure and other additional costs linked to construction, the ZSPS claims. As a result, it expects that this doubled financial burden will increase the price of new construction, which may impact the prices for end users.

“The increase in construction prices negatively impacts the availability of housing, the mobility of the labour force, and also the attractiveness of the country for investors and its competitiveness,” said ZSPS’s media representative Peter Steigauf, as quoted by TASR.

The law introducing the fee also lacks the duty to invest a significant portion of the fee in the locality where the new building is to be constructed. The aim would be to cover the induced investments resulting from the construction, Steigauf added.

ZSPS recommends making the fee rate reflective of the actual situation. If it followed the example of Vancouver, Canada, for example, the fee would be capped at €18, and not the current €35.

“The local fee for development worsens the perspective of the Slovak construction sector whose production has dropped in annual terms for the ninth month in a row,” Steigauf said, as quoted by TASR.

Topic: Real Estate


Top stories

A Slovak prisoner tattooed in Auschwitz, remained silent until he grew very old

Lale Sokolov fell in love in the concentration camp; only those close to him knew his story.

A tattoo, illustrative stock photo

Kiska: Only president can bestow awards

President Andrej Kiska turned to Constitutional Court over the law on state awards recently passed by the government.

President Andrej Kiska granting awards, January 1, 2018

Global warming is a myth, claims a hoax

According to recent hoaxes published online, snow in the Sahara disproves global warming and milk can block airways.

The snowfall in Sahara can be seen in this satellite picture.

Blog: Are flying cars coming to the skies?

At least 19 companies, including a Slovak one, are currently developing flying car planes, but there are still many issues that must be worked out.

AeroMobil