The Government aims to have issues around the land hoarding tax resolved in time for the budget, allowing the measure to be implemented following delays over the impact on farmers, Tánaiste Micheál Martin has told the Dáil.
The Residential Zoned Land Tax, introduced in last year’s budget, was deferred until February 2025. A major political row erupted between the Government parties in the summer when Minister for Finance Jack Chambers suggested the legislation might have to be deferred further because of the possible impact on farmers.
The Green Party insisted, however, that the tax must be introduced, with Minister of State Ossian Smyth stressing that a deferral would not be accepted. Green Party TD Steven Matthews described the plan to defer the tax as “incredible” and “like hiding food in a famine” given the housing crisis, and the Coalition leaders agreed to meet to resolve the issue.
Mr Martin told Labour finance spokesman Ged Nash, who raised the issue during Leaders’ Questions, that “the mechanisms devised to enable farmers not to be covered have not worked” and discussions are under way between the three parties, led by the Minister for Finance.
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Mr Nash had referred to the ESRI’s conclusions that land comprises about 20 per cent of the final cost of a homes. “And we know that you cannot control material costs, you cannot control labour costs and other costs that go into development homes. But you have the responsibility to use the tax system responsibly to disincentivise land hoarding. You can make a real difference overnight.”
Mr Martin also said, in reference to the budget, that “housing, water and the grid are essential pillars in terms of the future development of the Irish economy and Irish society”.
Funding from the sale of AIB shares would be invested and “the Apple funding as well will be allocated principally to those areas, although no final decisions have been taken”.
He said “the issue is, how do we develop a sustainable programme of capital investment” over the next decade “and shelter that then from any sort of winds or storms that might come our way into the intervening period”.
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