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VAT Rate Reductions

Dáil Éireann Debate, Tuesday - 9 May 2017

Tuesday, 9 May 2017

Ceisteanna (245)

Barry Cowen

Ceist:

245. Deputy Barry Cowen asked the Minister for Housing, Planning, Community and Local Government his views on reducing the VAT rate on professional fees to encourage greater use of professionals, such as architects, in the construction of extensions and one-off housing exempted under the building control regulations; his views on whether this would improve the quality of construction of residential dwellings; and if his Department has made submissions or had discussions with the Department of Finance in relation to this. [21900/17]

Amharc ar fhreagra

Freagraí scríofa

It is important to note that one off housing is subject to building control regulations. However, the Building Control (Amendment) (No.2) Regulations provide the owners of such homes with an option to opt-out of statutory certification of compliance with building regulations if they wish to do so.

Building Control requirements are far from the most significant element of the overall costs of housing delivery.  My Department carried out a review after the first twelve months of operation of the Building Control (Amendment) Regulations 2014, which found that the new Assigned Certifier role could be achieved for approximately €3,800 per dwelling.  The Society of Chartered Surveyors of Ireland published a report on ‘The Real Cost of New House Delivery’ (May 2016), which found professional fees accounted for approximately €5,500 or 2% of total costs, including Assigned Certifier and design work, which accords with my Department’s own calculations.

This represents good value for money and is a modest investment in overall quality in order to ensure compliance with the requirements of the Building Regulations. Taxation policy, including VAT policy, is a matter for my colleague the Minister for Finance.

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