Concrete levy 'is dead', say backbench TDs after crunch meeting
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Fianna Fáil backbenchers have been reassured that the controversial concrete levy will not go ahead as planned in April, and will be deferred.
A group of 12 TDs and senators met with Housing Minister Darragh O’Brien on Tuesday and have told the that the levy will be postponed.
A source who attended the meeting said the introduction of the concrete levy in April “is dead”, and it will likely be deferred.
It is understood that Mr O’Brien and Public Expenditure Minister Michael McGrath will speak to Finance Minister Paschal Donohoe before the end of the week on the matter.
There is broad agreement that a revenue stream will be required to assist in funding the mica redress scheme, and concerns are not about the levy in principle, but rather with its timing and application.
One Fianna Fáil TD at the meeting said the concerns over the levy were presented to Mr O’Brien and it was claimed that he was “very much in agreement with us”.
The meeting was chaired by TD John Lahart and those present included Eugene Murphy, Paul Daly, Robert Tory, Chris O’Sullivan, Padraig O’Sullivan, John McGuinness, and Jackie Cahill.
Mr Cahill said he is confident that the concerns of the Fianna Fáil parliamentary party meeting had been taken on board and the Finance Bill will reflect the concerns raised.
He said it is not the time to introduce the levy at a time when the country is in a “serious inflation cycle”.
Mr Donohoe announced the 10% concrete levy on budget day, and said it would raise €80m and would part-fund the €2.7bn cost of the defective blocks scheme.
Representatives for the construction industry have warned the levy could add up to €4,000 to the price of a home.
Fianna Fáil TD John McGuinness said stakeholders, including the Construction Industry Federation (CIF), will be part of hearings on the levy on October 29 to discuss how it would work.
However, this is just days before the Finance Bill is due for mention in the Dáil, with the bill expected to pass through all stages before Christmas.
The discussion heard queries on how the concrete levy would affect exports and agricultural construction as well as what costs it will place on the building of homes.
Mr McGuinness said: “The detail hasn’t been worked out; who exactly is going to pay — is it the man who sells cement, mixes the cement, or sells the blocks on?”
Sources also claimed once concerns were raised, the Taoiseach “had his own concerns”.