By Emma Ryan
CONCERNS have been raised that a government levy on concrete products will push up building costs and house prices for those impacted by defective concrete blocks.
The defective concrete products levy arises on the first supply of certain concrete products and came into effect on Friday, September 1.
The levy is calculated at five per cert of the open market value of liable concrete products on the date of their first supply.
There are concerns the levy will result in rising costs within the construction industry for defective concrete block homeowners who have to repair or rebuild their homes.
Speaking about the concerns, Donegal TD Deputy Pearse Doherty said, “The Government will push ahead with their deeply flawed concrete products levy, even despite all the warnings that this levy will result in higher housing and building costs for workers and families.
“This is ultimately a tax on new homes which will push up building costs and house prices,” said Deputy Doherty.
Deputy Doherty called on Minister Donohoe to correct the Dáil record regarding the scope of the levy as he claims the Minister had previously claimed that the levy would exclude pre-cast products but this has turned out to be false.
Speaking last week, Teachta Doherty said this caused confusion and uncertainty in the construction sector and wider industry.
“In October, Minister Paschal Donohoe made repeated claims that the levy excluded precast products – from blocks and paving to lintels and posts.
“These claims were false.
“It was clear as soon as the Finance Bill was published that this was not the case, and that poured concrete, a key element of precast products, would be subject to the levy.
“I raised this directly with Department officials at the Finance Committee on October 26.
“This has led to confusion within the construction sector and among wider industry, with the levy now to take effect in the coming days.
“Minister Donohoe should correct the Dáil record.
“More importantly, the Government should scrap this flawed levy, which will increase construction costs and house prices,” said Deputy Doherty.
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