Pat Casey (Wicklow, Fianna Fail) | Oireachtas source

Mr. Tom Phillips said he has a good interaction with the Department and input into Rebuilding Ireland. How are the figures for the required delivery of housing so different then? The Department claims 25,000 units are needed while Property Industry Ireland claims 50,000 are needed in the short term, double the Department’s figure. Even at that, we are not getting anywhere close to the Government’s figures. This shortfall will have a significant impact in the future and the Brexit situation will add to that.

The regional spatial and economic strategy for the Eastern and Midland Region Assembly has just been published. There were problems with the Department regarding population targets and, as a result, the zoning of land. It took a significant consultation with the Department which then sent an email on the Friday the strategy was published stating there was no need to downzone land. This was a factor in Wicklow town. The Department saw a large reduction in headroom in the town which would lead to a significant dezoning of land in areas which had the infrastructure in place to deliver housing. In Wicklow town, €100 million was already invested in infrastructure. In fairness, the Department counteracted that.

Senator Boyhan raised the issue of the collection of development levies. However, in Wicklow there is a system in place where the council will not sign off on planning or occupation until all development levies have been paid.

I was a benefactor of the VAT decrease in the tourism sector myself. At the time it was introduced it made my business viable. I do not believe I would have survived the crash without it. Does Mr. Mark FitzGerald believe the proposed reduction of VAT for the construction sector should be on a viability basis or for making housing more affordable? Housing is demand led. The greater the demand, the higher the price. VAT does not make an impact for the house purchaser when there is high demand. For small and medium-sized construction companies, the 4.5% margin from a reduction from 13.5% to 9% would have an impact as they cannot access any credit, particularly those building outside Dublin.

There are small and medium-sized enterprises around the country which could deliver 20 or 30 houses tomorrow morning if they could get access to credit and increase their margins to make it more viable. Would the witnesses look at a reduction in VAT from the point of view of viability rather than affordability?