TÁNAISTE SIMON HARRIS and Finance Minister Paschal Donohoe appear to be at odds over the prospect of the government considering giving tax breaks to developers in a bid to boost housing numbers. 

Donohoe has insisted his resistance to tax breaks for developers is “unchanged”, after his party leader said he was “open” to such measures.

Speaking to the media in Mullingar today, where his party is holding its party think-in, Donohoe said there were “risks and dangers” around taking that step, having previously argued that schemes were expensive and damaged the economy.

Earlier in a radio interview on Newstalk Breakfast, Harris said he was “open to considering” tax breaks for developers.

Harris said would be open to the measure if it was “very targeted” and “fully focused on viability issue”, adding: “And if we are crystal clear: ‘That’s it, get on with it, build the homes’.”

However, Donohoe said both he and his party leader were “very much aware of the risks and dangers of the past”.

He told reporters: “The Tánaiste and myself are really clear on the importance of building more homes within our country, how important that is to meet the needs of our society and how important it is for the future of our economy as well.

“There are always, and have always been, supports in place to allow more homes to be built.”

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While Donohoe’s position does not appear to have changed, Harris’ stance has moved. 

Earlier in the year, he said he remained to be convinced that tax changes were the most effective tool to bolster construction.

However, yesterday Harris said the “government has to look at every possible lever that can be pulled, including the cost base that people who build homes, including builders, developers face as well”.

Donohoe has previously strongly come out against the reintroduction of Celtic Tiger-style tax breaks for property developers, putting him at odds with the Taoiseach who said the government was exploring the idea of possible tax breaks for private housing developers in a bid to boost supply.