Mattie McGrath warned the Dáil that the 5% levy on ready-mixed concrete and concrete blocks introduced in Budget 2023 will increase housebuilding costs and slow construction. He cited a KPMG study estimating a €1,300 rise on a three-bed semi-detached house and an extra £300 million in construction costs, and urged debate before the levy takes effect on September 1st.
Levy and projected cost increases
He highlighted a KPMG study referenced in the chamber that the levy will add roughly €1,300 to the cost of building a three-bed semi-detached house and could add about £300 million to construction costs overall, exacerbating inflation in the sector.
Impact on housing and infrastructure targets
McGrath argued the levy will undermine efforts to build houses and deliver necessary infrastructure, warning it will slow the rate of construction and add a punitive charge to builders and buyers trying to get a foot on the housing ladder.
Timing and call for debate
He expressed concern that the government will recess for the summer and return with the levy due to start on September 1st, and appealed for a parliamentary debate on the issue before it takes effect.
Other remarks in the chamber
He also noted deputies had raised homelessness, the situation in Israel and Palestine, and European defence industry matters, and he welcomed visitors from the National Advisory Council of Down Syndrome Ireland to the House.
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I know you want to launch your summer economic statement this evening, I hope it won't be raining, but there are huge concerns, Teachta, at the levy that you introduced in your government in Budget 2023, a 5% levy on all ready-mixed concrete and concrete blocks. The KPMG have done a study on this, which has said that you will increase the building of a three-bed, semi-detached house by €1,300, and that it will cost an extra £300 million in construction costs, and it adds to the already spiralling inflation in that sector. across construction and across agricultural industry as well. You have so many commitments here and so far behind and failed on them, but it beggars belief if your government are going to go off for the summer recess, come back with this levy that is introduced on September 1st, and add again, and again undermine your own targets that you have for building houses and for building infrastructure we so badly need. So I am appealing to you to have a debate on this issue. It is very, very serious. It was introduced and kind of hedged until September, but this is going to do untold damage and slow down the rate of construction of houses and other buildings, and it is another punitive charge. Thank you. A couple is trying to build our houses and get a foot on the ladder. Deputy Ivan Abel. Before I respond to the deputies, I just want to take this opportunity to welcome some visitors to the House. The members of the National Advisory Council of Down Syndrome Ireland are here today, so a very special welcome to Sinead, Ross, Connor, Orla and Clare. You are very welcome to the House. I hope to see you at some point later on. The deputies have raised some very important issues here, homelessness, what is happening in Israel and Palestine, in Janine and Tel Aviv, and also the European defence industry issue, but we have an agreed order for the House, which I understand was agreed at the business committee, working to stick to the agenda to get our legislation to do with Nosy blonde Abbott administration on our agenda. The police on the head is already indicated and some time will be provided next week. Now, please, are the proposed arrangements for this week's business agreed to? The chapter of the third half of the third half is going to be done. And I'm going to go to Neil. I'm going to go to Richard, but I believe the question is going to be done.
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