HOUSING MINISTER DARRAGH O’Brien has warned Finance Minister Paschal Donohoe that Fianna Fáil TDs and Senators have “serious reservations” over the 10% concrete levy.
The 10% levy on concrete blocks, poured concrete and other products was announced as part of Budget 2023 as part of a plan to offset the cost of the mica redress scheme.
The levy itself is expected to raise €80 million a year.
The proposed levy has raised concerns in both political and industry circles, with the Society of Chartered Surveyors warning that a 10% levy on concrete products could push up the price on homes by up to €3,000 – €4,000, with the price set to be passed on to prospective house buyers.
In a letter sent by O’Brien to Donohoe, seen by The Journal, the Housing Minister says that while Fianna Fáil TDs and Senators had broad agreement with the principle of the levy, they raised concerns over its timing, format and application.
“These concerns were particularly acute in the context of inflationary pressures on the building sector and need to boost housing supply,” the letter reads.
O’Brien said that party members believed the timing of the levy was “inappropriate” and that both the format and application of the levy needed to be “reconsidered”.
O’Brien added that he would engage with Donohoe ahead of the Finance Bill, which is set to be introduced to the Dáil on Thursday.
Last week, O’Brien held a special meeting with the Fianna Fáil parliamentary party, chaired by Dublin South West TD John Lahart, to discuss the levy.
The levy has been defended in recent weeks by both the Taoiseach and Tánaiste, with Micheál Martin saying that the cost of the mica redress scheme needed to be funded either from the industry or through the taxpayer.
However, the levy has been raised at both Fianna Fáil and Fine Gael parliamentary party meetings, with TDs in both parties raising concerns.
To embed this post, copy the code below on your site
have your say