Opposition to the government plan for a 10% levy on concrete blocks and products continues.
The Dáil is to vote later today on a Sinn Fein motion calling for the levy proposal to be amended. The Sinn Fein Motion was amended by the Finance Minister and now includes a clause that “details of the design and how the construction industry and developers will contribute to the levy will be outlined in the forthcoming Finance Bill 2022.” Tipperary TD Michael Lowry has also called on the government to revise their proposal for the levy.
The Government intends to use the levy proceeds to compensate people with houses damaged by defective blocks. Deputy Lowry told the Dáil that the Construction industry should share some responsibility and contribute from net profits.
He also said the Government needs to explain to the public why it is that no entity is held responsible or accountable and it should publish its legal advice on the issue. He accused Quarries and developers of behaving in a reckless fashion and exploiting light touch regulation in using defective products. It is understood that some quarries may be continuing to produce defective products.
The government proposal shifts the cost of addressing the Mica mess onto the young couple who are saving to build their first home or to the family who needs to extend their house according to Deputy Lowry who also said the government proposal would exacerbate the existing housing crisis.
Sinn Fein wants banks to make a contribution as the repaired houses impacted by MICA will have their value restored instead of the mortgage asset being worthless.
The Government’s proposed Concrete Block levy looks likely to be widened when the detail of the proposal comes before the Dáil in the Finance Bill later this month. The Finance Minister amended the Sinn Fein Motion last night and added a clause that states details of the design and how the construction industry and developers will contribute to the levy will be outlined in the forthcoming Finance Bill.
The Government’s initial proposal was to add a 10% levy on concrete blocks, pouring concrete and other concrete products.
The Society of Chartered Surveyors of Ireland estimate that the levy could add €4000 to the price of a new house.
There have also been calls for the levy to be applied to the profits of quarries, construction companies, developers and banks. Sinn Fein wants banks to make a contribution as the repaired houses impacted by MICA will have their value restored instead of the mortgage asset being worthless.
The government says the funds raised in the levy will be used to help finance a redress scheme for homeowners whose properties are impacted by defective concrete products.