Finance Minister Paschal Donohoe has performed a u-turn on the controversial concrete block levy as he cut the rate to 5% and pushed back its introduction by five months.
Fianna Fáil backbenchers have claimed victory in the ongoing row, with some TDs saying privately that they would be “amazed if it ever saw the light of day” following the decision.
Minister Donohoe backed down on the introduction of a 10% levy on concrete products following concerns that the measure would have on the price of houses.
It was announced as part of the Budget that the levy would apply from April 2023 and would bring in around €80m a year. It is estimated that the cost of remediating homes affected by mica and pyrite, as well as homes built with defective materials, could cost between €4bn and €6bn.
However, following Tuesday’s Cabinet meeting, it was decided that the levy would be reduced to 5% and delayed until September 2023. Precast concrete products will now be excluded from the charge.
The changes mean that the levy will earn the Government just €32m rather than €80m. The levy will now be in place for longer due to the decision to cut the rate.
The decision to delay the levy came following a meeting between Fianna Fáil backbenchers and Housing Minister Darragh O’Brien last week. The Minister later wrote to Mr Donohoe expressing concern about the levy’s impact.
Fianna Fáil TDs told the Irish Mirror that the decision to change the levy was a “win” for the party.
“It is half of what it was and delayed for six months,” one backbencher said.
“I’d be amazed if it ever saw the light of day.”
Fianna Fáil’s Cathal Crowe welcomed the changes to the levy, but repeated calls for the State to initiate legal proceedings against those responsible for supplying the defective materials.
“If we could make the real culprits pay, I don’t think there should be any levy on the public,” he said.
However, there were some reservations about the manner in which the levy was delayed.
One Fine Gael TD told The Mirror that their concern was that the measure would have an inflationary impact on building materials that would lead to an increase in house prices.
They argued that “not a whole lot” is going to change between April and September.
“I would have preferred it to be spread across the industry, not on people’s bills,” they said.
“People in rural Ireland will be disproportionately affected compared to big developments in urban areas.”
Minister Donohoe would not be drawn on Tuesday whether or not he had performed a “u-turn” on the concrete levy.
He said that judgment was for others to make.
“It is a change from where we were on Budget Day,” he said.
“However, the key features of what I announced in relation to the levy are ones that I am still standing by.
“There will be a levy. It will happen next year. It will raise money.”
The changes to the levy will be contained in the Finance Bill that will be published on Thursday.
Minister Donohoe confirmed that the Bill will not contain any additional supports for landlords. He also stated that he is not examining proposals to change income tax rates for landlords.
READ NEXT :
RTE Monday Night Live viewers 'in tears' as family of four describe turmoil
Family devastated after death of popular man following alleged machete attack
Neighbours desperately tried to save woman killed in Roscommon house fire as tributes paid
McDonald's fans shaken after finding out what sweet and sour sauce is made from
Charlotte Crosby's devastated mum can't see new baby for heartbreaking reason
Get breaking news to your inbox by signing up to our newsletter
