Concrete levy will put ‘burden and pain’ on to ordinary homeowners – McDonald

The Government’s proposed concrete levy will put the “burden and pain” on homeowners rather on those responsible for construction defects, the Dail has heard.

Sinn Fein leader Mary Lou McDonald called on the Government to scrap the controversial measure during Leaders’ Questions on Tuesday.

The Dublin Central TD said the levy will hit ordinary people in the pocket as they struggle with “sky-high” housing costs.

“Your proposal is flawed and it will make the housing crisis even worse,” she said.

“You say that the levy is to ensure that industry contributes to redress schemes for defective blocks and pyrite.

“However, the reality is that this isn’t a levy on the industry at all – your scheme is really a levy on those desperately seeking to buy or build a home because companies will simply factor in they’ll pass on the increase to customers.

“(It) puts the burden and pain on ordinary homebuyers instead of where it belongs – on the banks, on the profits of big developers and on those responsible for defects.”

The levy on concrete blocks, pouring concrete and certain other concrete products was announced by the Finance Minister in last week’s Budget.

It is set to raise 80 million euro annually and is due to be applied from April 3 at a rate of 10%.

Paschal Donohoe said the aim of the levy is to offset the “significant cost” of the redress scheme agreed earlier this year for homeowners who have been affected by the issue of defective products used in the building of their properties.

But opposition parties and housing organisations have argued the measure will result in higher house prices.

The Society of Chartered Surveyors Ireland has forecast that it could add up to 4,000 euro to the cost of an average three-bed semi-detached house.

In response, Taoiseach Micheal Martin referenced George Orwell’s 1984, accusing Sinn Fein of being the party of “doublethink and the three-card trick”.

“You support the levy on concrete products until you don’t; the industry responsible for the problem should pay, until it shouldn’t,” Mr Martin said.

“You are making this up as it goes along.

“God help us if you ever get near the national finances.”

He told the Dail the Government was giving “unprecedented” support to first-time buyers who consisted of 26% of properties purchased last year.

Mr Martin also said the Government had signed off on between 4.5 billion and 6 billion euro for remediation costs.

It includes 2.7 billion euro for mica defects, 230 million euro for pyrite issues and between 1.5 billion and 2.5 billion euro for apartments affected.

“There has to be a revenue stream at least to contribute to that extraordinary expenditure,” he added.

Ms McDonald told the Taoiseach he would be “more Animal Farm than 1984, some being more equal than others”.

She added: “All of you on the benches opposite are responsible for the light-touch regulation or the no-regulation role that gave rise to this nightmare.

“So that’s where culpability for that lies.”

Housing Minister Darragh O’Brien said the Finance Minister will outline details of how the levy will work to government bodies before the Finance Bill is published.

Speaking at the launch of the Respond 2021 housing report in Dublin, Mr O’Brien said the Government wanted to help homeowners affected by construction defects.

“The state is stepping in in a big way,” he said, adding that the levy would ensure that “some part of that funding is provided for by the sector”.