Brendan Ryan (Dublin Fingal, Labour) | Oireachtas source

Returning to Part V, I agree with others that it should be 20%. The witnesses' presentation indicated that the operation of Part V contributes to restricting new residential building activity and puts upward pressure on all costs. We have dealt with the costs. I would question the argument about it restricting new activity. My sense of the building industry is that for other reasons altogether, it would prefer to have private estates without any element of social housing. Is that not the real truth in terms of why the witnesses would prefer to see Part V restricted in some way?

On the suggestion of a 1% levy, in the past with Part V, when local authorities were in a position to take money instead of delivering housing, that money just went into a black hole and no houses were delivered. Why would the witnesses' suggestion be any different? Is there not a real case for saying that when there is building activity on a site, those concerned should at least deliver something while the planning and the development is under way?

Regarding the suggestion to reduce VAT, if that could incentivise the industry it would be very welcome. What guarantee could the witnesses give us that it would not be absorbed? There is a poor track record in that when incentives were given to home owners - first-time buyer's grants and so on - typically, those incentives were added on to the price of the house and did not benefit the consumer at all.

Section 3 of the witnesses' presentation deals with development levies. While estimated costs are included at the end of the paper, this section seems to suggest that there would be no cost to a change in that development levy. It is stated that local property tax should be appropriately structured so that adequate revenues are raised. We currently have the property tax and the levy so there is an income there. If it is taken away, there is a loss of income, so there has to be a cost. Are the witnesses suggesting that the property tax should be increased to take account of any reduction in this levy?