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

It is a successful scheme, with the qualification I made. We have not got the absolute proof yet, but it seems to be going very well. The scheme was designed to kickstart the building industry when it was at a low point and just beginning to move again. The construction industry is much stronger now, but I do not want to announce anything this year that would persuade people to defer work that they intend to carry out, because given the way the industry goes, I want to continue to frontload the work. We will reassess the position next year and I am open-minded about it. If it is worthwhile, I will extend it next year, but that is not a commitment.

Anybody who wants to build an extension should move now. If it is discontinued, provision will be made for people who only start work next year to avail fully of their tax relief, along the lines the Deputy has suggested. The duration of the incentive depends on whether the property is a principal private residence or residential rental unit. The Deputy knows about the incentive for homeowners. There are transitional provisions, which allow for work to be carried out between 1 January 2016 and 31 March 2016, where planning permission is in place by 31 December 2015. It applies to extensions and small works, so three months grace is given for the work to be carried out if there was a delay in planning and the planning permission only came in at the end of 2015. We will review it next year and I will consult with the Deputy.