Builders call for concrete levy review

Builders want the Government to stall the introduction of the concrete levy for two years and are seeking a review of the controversial tax.

Government recently halved the proposed levy, introduced in Budget 2023 to meet mica compensation and other costs, to 5 per cent from 10 per cent.

The Construction Industry Federation (CIF) on Wednesday called on Government to defer its introduction for two years to allow for a full regulatory and economic assessment of its likely impact.

Tom Parlon, the federation’s director general, argued that the levy posed a serious threat to Government efforts to tackle the housing crisis, the National Development Plan and general construction.

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Speaking ahead of meeting the Oireachtas Joint Committee on Finance, Public Expenditure and Reform, he warned the industry faced material cost increases “not seen for 40 years”.

He described the levy as unfair and damaging to an industry already under financial stress.

“The general construction and housebuilding sector requires time to recover from these supply chain disruptions and materials cost,” he said. “Businesses that have no responsibility for the defects will be expected to fund the levy from their own resources.”

First-time house buyers, public bodies and private organisations will ultimately pay the levy’s cost, while the CIF director general argued that the tax was unlikely to raise the cash predicted in the budget.

The federation maintains that those responsible for defects in building products should be held responsible “using targeted and surgical” measures.

“Other methods such as statutory inspection, standards, certification and licensing should be considered as these could help protect future homeowners and clients,” said Mr Parlon.

His organisation argues that sale of goods and services law should be strengthened for manufacturers and suppliers to the industry. The CIF also seeks a national centre that will independently test products supplied to builders.