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IRISH FORECOURT OPERATORS are cutting behind-the-scenes deals with their rivals in order to resolve long-running planning rows, according to several industry insiders.
Recent Fora analysis highlighted that planning appeals nationwide have caused dozens of petrol station developments nationwide to be delayed and in some cases abandoned altogether.
All of the major forecourt operators have lodged numerous objections to local and national planning authorities against their rivals’ plans, causing disruption to the projects.
These large petrol station operators have also made numerous complaints about independent filling stations when these developments have been proposed near their own outlets.
A number of people who work for both large and independent petrol resellers in Ireland have told Fora about the tactics larger operators deploy to derail their rivals and the confidential deals cut to reach resolutions.
While there is nothing untoward about striking these agreements, smaller operators complain that serial objections from bigger firms can hinder their ability to compete in the close-fought retail fuel market.
All the industry figures spoke on condition of anonymity due to their sensitive positions in the industry and their involvement in past or current planning rows with competitors.
One source at a large forecourt operator told Fora that deals are often cut behind the scenes to end “commercially motivated” planning rows.
“If two particular fuel stations have objected to another, a deal might be done where they agree to withdraw their objections so they both get their respective developments through.”
Another industry source said different types of commercial arrangements, such as trading or cut-price leasing of fuel storage tanks at Irish ports, have also taken place.
“It’s serial objecting in order to try and do a deal, that’s what it is.”
A planning consultant who has worked with forecourt operators told Fora that the disputes over petrol station developments have become “par for the course”.
“It’s the exact same with the retail and the likes of Tesco and Dunnes Stores objecting to Lidl and Aldi, it’s the exact same scenario.
“They all just protect their own patch and then get in a tit-for-tat situation, and it just escalates from there. It would be nice if everyone minded their own business, but that’s just the nature of it.”
Another industry source said developers now approach new forecourt projects with the mindset that appeals will undoubtedly be delayed.
“It’s a competitive process. You just need to accept it’s the fact. Developers now factor in for delays with these projects.
“The objections usually cause about a five-month delay, it’s not drastic. It’s just accepted that it will happen.”
A smaller operator in the forecourt sector said the delays mean they have to go “the long way round” if they want to expand their business.
“When you’re up against (any of the major operators), it’s automatically appealed to An Bord Pleanála, which means delays and possibly oral hearings.”
They added that this takes what should be a local issue out of the relevant authority’s hands and “makes a mockery of the local system”.
“It’s like Amazon, Uber and Google, the big ones keep getting bigger and it’s getting harder and harder for the independents to stay alive because they are so powerful.”
Faulty planning system
A source at a larger fuel reseller said that they are forced to argue with local and national planning authorities regularly that a lot of objections they face are solely commercially motivated.
“With planning you can always find a complaint. Whether it is valid in terms of the eyes of the council is another matter. But it’s easy to find some issue to complain about.”
However, one source at a smaller forecourt operator said the waves of appeals don’t mean the system is in any way flawed.
“In general, third-party appeals are a good thing in my opinion. They are part of the checks and balances process and serve as a second round of assessment. The appeals lodged aren’t always outlandish.”
They added that a big problem they have with the system is the ability to withdraw appeals on a whim without citing a reason why.
“Sometimes appeals are withdrawn after a few weeks of being processed. Maybe a transaction takes place. That’s an issue the planning boards have to address. After a few weeks you shouldn’t be allowed to withdraw an appeal.”
Solution
Forecourt industry professionals who spoke to Fora said expediting the issue straight to the national planning board could be a solution to the problem.
Residential developers can bypass local authorities and lodge proposals for large housing developments directly with An Bord Pleanála, while large strategic infrastructure projects for electricity and transport are also dealt with by the national board.
One independent petrol reseller said the solution to the mountains of serial objections is not to take it out of local councils’ hands.
“If you take it out of the county council and local authority set up where does it go, An Bord Pleanála? There is nothing wrong with the county council setup in all fairness to them, nine times out of 10 they get it right.
“There is nothing wrong with legitimate objections based on fact but there is no deterrent for vexatious objectors. That’s a government issue that has to be addressed within national planning frameworks.”
Another small-scale petrol station operator said it’s too easy to lodge an appeal without any background check into who they are and their motivations.
“You should have to make clear a reason for an appeal. You shouldn’t be allowed to appeal from anywhere in the country and not have to set out your reason why.
“People lodge appeals sometimes and you think, ‘Who the hell are they?’”
None of the major fuel resellers provided a spokesperson or statement when contacted by Fora for this article.
Written by Killian Woods and posted on Fora.ie
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More importantly Why is petrol €1.41 a liter and not a peep from the regulator. Outrages price gouging
@David Huston: Big reason being the monopoly Esso/Topaz has in this country, particularly in Dublin Kildare Wicklow. Brief history, Topaz purchased by Denis O’Brien in 2013 for €150 million with a debt knock down of €150 million from the IBRC. When Topaz already had too strong a share of the market, the competition authority “somehow” cleared the way for Topaz to merge with Esso in 2015. There is one non Topaz between Dublin city centre and South Wicklow on the N11. Less then 3 years later, O’Brien sells Topaz to Couche Tard for €300 million cash plus debt. €150 mill profit in three years, or in lighter terms the €150 mill debt write off absorbed by the Irish Tax payer through the IBRC
@Tom Cullen: This is the same IBRC that wiped €110 mill of €150 mill debt belonging to siteserv. The same SiteServ that got awarded the contract for installation of water meters despite better tenders being on the table. Siteserv was purchased 3 months before the announcement of the introduction of water charges. Guess who owns SiteServ, yup Denis O Brien. Same fella who paid Michael Lowry to award his consortium the mobile license at a knock down rate in 1996
@Tom Cullen: Fun fact, the sale of SiteServ is currently being investigated as French utility company Altrad offered to buy for €60 mill when DOB only offered €40 mill. The expected cost of the investigation €100 mill, I kid you not. So to date the financial burden beared by the tax payer directly or indirectly of government dealings with Denis O’Brien are €420 mill that I’m aware of (150 Topaz debt write off, 110 mill SiteServ debt write off, 60 mill Moriarty Tribunal, 100 mill SiteServ investigation). Profit made by DOB in that time, minimum €450 million (Esat 300 mill, Topaz 150 mill) due to corrupt dealings.
@Tom Cullen: now called Actavo
@Patrick Brady: Correct, the same Activo that made a combined €40 million euro profit in 2015/16. Why did a profitable company get a 70% debt write off from a government/tax payer owned institute.
@Tom Cullen: Dinny will easily be the richest man in the graveyard by a mile. Any pictures I have seen of him could win the gold medal for stress.
@David Huston: because at least 70cents of is tax and excise duty. People like to think that the likes of BP and Shell are gouging is. They’re not….it’s our stinking government. Without PAYE and motorists this country would be a third world country without a bob to its name.
@David Huston: petrol costs about 35 cent per litre whole sale.. add carbon tax.. nora levies …vat .. and other added in charges from the government you’re at about 1.30 now… give 2 to 6 cpl to the importing distributor that leaves the forecourt retailer with about 2.5 – 5 cpl contribution… after paying all overheads in reality if they make a cent on every litre its a lucky station. It’s an extremely low margin product to try sell.
Can I object to these objectors for objecting to object to my objecting their objects not fitting in with my objections?
its about Brown envelopes. why is the biggest bottleneck on the N11 at Kilmackanick not being upgraded? simply because there are 2 petrol stations on each side owned by people with influence. if they were warehouses they would have been bought by the council on compulsory purchase.
Wait until the fast charging electric charging stations company start developing their infrastructures for electric car we will than see all of the poison spuwing fosil fuel stations folding in droves within the next few years the quicker they go the better for the sake of mankind
@James Moore: Until the energy provider gouges the service stations and inbturn stary charging “nominal charging fees” to meet the “current demand”
Within 10 years there will be a charging fee constantly riding during the budgets
Government will always get its pound of flesh
@James Moore: So the thought of thousands of people in Ireland and millions around the world losing there jobs is something you look forward to?. you are a good fella
@Roy Dowling: new jobs will be created as a byproduct of more money staying in the country as it stands money to buy fossil fuel on the world market is costing Ireland to import this poison product billions per year we will save a lot of money by change over to EV
20 yrs time a lot of these stations will be defunct as the ruse of electric cars takes hold
@Patrick Brady: Urban petrol stations yes, motorway stations will see profits rise. Instead of quick fills, you’ll have to park for 20-30 mins to get a charge. More likely to grab a €5 hotdog and €3.50 machine coffee. These foodcourt style petrol stations on the M4, M1, etc have already started to embrace this. Independent rural cafés will be hurt
Applegreen, who are they? Same as topaz? The amount of them going up is crazy. There are 2 on the M1 beside Balbriggan and one in off exit 5 which when you consider Balbriggan has 2 stations in town would have been enough. Nope! Fingal council granted permission for another applegreen to go up inside Balbriggan when there was clearly zero need for it. The whole sess pitt is disgusting!
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