Dáil Éireann Debate, Thursday - 6 October 2022
192. Deputy Michael Healy-Rae asked the Minister for Housing; Local Government and Heritage if his Department intends to revise the issued price guidelines for the purchase of turnkey homes in each local authority area following the proposed tax on poured concrete and concrete products; and if he will make a statement on the matter. [49264/22]
View answer193. Deputy Michael Healy-Rae asked the Minister for Housing, Local Government and Heritage if his Department has been notified of any possible increases in the cost of turnkey, social or affordable housing following the proposed tax on poured concrete and concrete products; and if he will make a statement on the matter. [49265/22]
View answerI propose to take Questions Nos. 192 and 193 together.
In November 2021 the Government agreed a comprehensive Defective Concrete Block Grant redress scheme. This scheme was designed to support home owners who have been severely affected by issues relating to defective products in the construction of their homes. One of the actions arising from that decision was the development of a levy to offset some of the costs associated with the scheme. In his Budget speech last week, the Minister for Finance confirmed the levy will be applied to concrete blocks, pouring concrete and some other concrete products. The levy is expected to raise around €80 million a year and will go towards the cost of the comprehensive redress scheme. The levy will be set at 10%, and will be charged at the point of first supply in the State, so ensuring that all liable concrete and concrete products manufactured and/or used here will be liable to the new levy. The levy is to come into effect from the 3rd of April next year. Further detail on the levy, and in particular in regards to the specific products it will apply to will be set out in the Finance Bill 2022 when that is published on October 20th. Analysis carried out on the levy estimates that, for a typical dwelling, increases in construction costs will be in the range of approximately 0.4% - 0.9% and are subject to range of variables including- dwelling type, design, location, existing site conditions, external works, car parking requirements.
There are a wide range of factors which impact on housing construction costs. My Department monitors these issues, including through the analysis of data on local authority social housing tenders, and prepares Unit Ceiling Costs (UCCs) for new build social housing schemes. These UCCs which are periodically updated and issued to local authorities as a key reference in the development and costing of social housing scheme proposals. There are no specific price guidelines in place for turnkey developments.
