Cost of mica and apartment defect repairs ‘will have to be met’ sometime, Minister says

Minister for Public Expenditure and Reform Michael McGrath has deflected questions about whether a levy on concrete products will form part of the Finance Bill when it is published next week.

But he said the mica and apartment structural defect repair schemes will cost more than €5 billion, which “somebody will have to meet at some point in time”.

Mr McGrath told Sinn Féin’s Matt Carthy in the Dáil that the Government “is engaging with all of those who expressed a view in relation to this issue”.

“The Finance Bill will be published and Minister (for Finance Paschal) Donohoe will give careful consideration to all of the issues that have been raised,” he said.

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The levy announced in the budget last month and due to be introduced in April next year has provoked widespread criticism, including opposition from Government backbenchers.

At a Fianna Fáil parliamentary party meeting on the issue earlier this week, a number of TDs said now was not the time for a levy on concrete blocks because of current inflationary pressures.

The levy would put a 10 per cent tax on concrete products with a projected income of €80 million annually as part of efforts to help fund remediation schemes for Celtic tiger-era building defects.

It comes as the country’s largest trade union came out against the levy. In a statement released on Wednesday, Siptu sector organiser John Regan said the union had seen a “high level of concern” from the concrete trade. He added that the levy would “affect the competitiveness of firms tendering for projects compared to those based outside of the State who will not have to factor this cost into their applications.

“This could ultimately affect employment numbers in these companies,” he said, adding the the impact would be passed on to house buyers and could have a knock-on effect on construction projects.

‘Ludicrous notion’

Raising the issue during leaders’ questions, Mr Carthy said the levy “should absolutely be scrapped”.

“It is a ludicrous notion to increase the costs of building homes at a time when we’re facing an unprecedented housing and inflationary crisis,” he said. “And incredibly those families that were actually impacted by the defective blocks scandal and the Celtic tiger-era safety defects will actually be forced to pay more to rebuild under this levy.”

Mr Carthy called on the Minister to “break through the spin for us” and confirm whether the levy will be included in the Bill or “will you scrap this in favour of a more reasonable approach”.

But Mr McGrath rounded on the Sinn Féin TD and said “I’ll break through your spin”.

He said Sinn Féin called for and welcomed the levy.

“That is the fact of the matter and we need to remind people of that,” he said. “Your finance spokesman welcomed the levy on the day it was announced in the Dáil.”

But he stressed that the State would have to ensure it could fund a €2.7 billion for the cost of mica defects.

He said Minister for Housing Darragh O’Brien had a report on his desk on apartment defects “that will cost up to €2.5 billion” to repair up to 100,000 apartments.

“Between those two schemes that is €5 billion that somebody will have to meet at some point in time,” Mr McGrath said. “But we will engage, we’re considering all the points that have been raised and Minister Donohoe will respond.”