Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 12:

In page 11, lines 26 and 27, to delete “a qualifying contractor exceeds €5,675” and substitute “a qualifying contractor or qualifying contractors is equal to or greater than €5,000”.

Having listened to the Second Stage debate and the concerns raised about the entry point and incentive provided, I am happy to say I have decided to reduce the minimum threshold from €5,675, inclusive of VAT, to €5,000, inclusive of VAT. Therefore, a greater number of homeowners will be able to avail of the incentive which will stimulate increased activity in the construction industry. I regret, however, that I cannot accept the suggested lower thresholds. The incentive represents a measured response to the significant downturn experienced by the construction industry and the provision is designed to stimulate increased activity and boost employment in the sector. The backdrop to the measure is the continued pressure on the national finances; therefore, I cannot agree to a further lowering of the minimum threshold. I point out once more that one can aggregate work up to a value of €5,000. The argument has been made that many contractors involved in the black economy will not carry out work in excess of a value of €5,000 and that, consequently, the provision will not counteract the black economy. That is not true. Let us look at the situations I described previously involving activities such as painting, landscaping work at the back of a house, getting in a plumber or installing new doors in a bedroom. In aggregating the outlay is divided into small quantums of money, the kind of projects contractors who operate in the black economy are involved in.