Dáil Éireann Debate, Tuesday - 25 October 2022
253. Deputy Pádraig O'Sullivan asked the Minister for Finance if the agriculture sector will be exempt from the concrete levy due to the nature of its business and the large quantities of concrete that are required for large buildings and farmyards; and if he will make a statement on the matter. [53045/22]
Amharc ar fhreagraI announced the new Defective Concrete Products Levy in my Budget 2023 speech last month. The introduction of this levy arises from a Government decision that a levy be imposed on the construction sector to contribute towards the cost of the Mica Redress Scheme, that was taken in November 2021.Following the announcement of the levy on Budget day, and in light of subsequent feedback from industry participants and others, I have determined that the rate at which the levy will apply will now be set at 5%. It will also now come into effect on 1 September 2023, to allow more time for all stakeholders to prepare for its introduction.I have also decided to remove pre-cast concrete products from the scope of the levy, so that it will now only apply to pouring concrete (aka ready-mix) and concrete blocks under two harmonised EU standards. The levy remains unchanged in all other respects, and does not exempt any particular sector, including the agricultural sector.
I acknowledge the necessity of concrete usage in that sector, however, as pre-cast products are now removed from scope the levy it will not apply to pre-cast products used in the agricultural sector, including those used for the covering of slurry stores or used around animal houses to retain slurry. Other precast products used in the agriculture sector such as floor slats for livestock are also excluded from the levy.
I was conscious when developing the levy that I had to balance the need to ensure some of the costs of the redress scheme are met from a source other than the Exchequer, while limiting the impact on inflation in the construction sector. It is essential that the entire cost of the redress scheme, which arises from the use of defective concrete blocks and other concrete products, is not borne in full by the Exchequer, and through it the Irish taxpayer.
