Tipperary TD Michael Lowry says there is a backlash emerging against the Government’s 5% levy on Concrete products which is in place as of September 1st. The Government initially announced a 10% levy to begin in April 2023 to raise revenue to fund the State Redress Scheme for homes damaged by MICA and Pyrite. The redress scheme is expected to cost at least €2B and for now is limited to counties Limerick, Clare, Donegal and Mayo. Deputy Lowry says any speculation that a cooling-off period to September and a lowering of the rate to 5% would lessen anger against the move has proven fruitless as it is still receiving a furious backlash.
Firms supplying construction products say they are being faced with an administrative burden for a historical problem not of their making and want the government to change the levy so that it will be paid by the four major cement suppliers. Critics have also hit out at the impact the levy will have on the costs of home or other construction projects with consumers eventually carrying the burden.
It is estimated that the Levy will add €1,285 to the cost of building a 3-bed semi-detached house and add €1,000 to the cost of constructing an average silage pit according to the Thurles based TD.
Critics also point out that 85% of the income from the levy will come from sales of ready-mix concrete, even though this product was never associated in any way with the Mica crisis. The affected home owners say the Redress scheme is inadequate and that no change has been made to the regulation of building materials in Ireland to prevent a recurrence. The cost of the scheme is expected to increase as costs to repair or replace public buildings are identified and some TDs want the scheme to be expanded with Tipperary TD Jackie Cahill asking that the Scheme be expanded to include affected properties in County Tipperary.