Planning applicants face "a pit of blackmail and ransom" because of serial objectors.
Independent Kerry TD Michael Healy-Rae made the claim when he raised the matter in a parliamentary question.
The deputy believes people with genuine concerns have a right to object but alleged "frivolous objections" are delaying families from building their own homes countrywide.
Housing Minister Darragh O’Brien introduced a new bill to the Dáil in November which would make it a standalone offence to demand so-called "go-away money" to withdraw objections.
Deputy Michael Healy-Rae says this is not what the planning system is for.