Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The defective concrete products levy was introduced in the Finance Act 2022 and came into operation on 1 September 2023. The intention of the levy is to raise revenue to help to offset the funding of the defective concrete blocks grant scheme, which was introduced by the Minister for Housing, Local Government and Heritage. The legislation applies a levy on the first supply of a defined list of certain concrete products. The levy is calculated at 5% of the open market value of the products on the date of their first supply.

This section provides for a small number of amendments - I will turn to the Deputy's amendment in a moment - to the defective concrete products levy. First, as I announced on 6 September this year, ready-to-pour concrete used in the manufacture of precast concrete products will be removed from the charge of the levy with effect from 1 January 2024. A precast concrete manufacturer is required to make a declaration to the ready-to-pour concrete supplier that the ready-to-pour concrete that the manufacturer is acquiring or using will be utilised in the manufacture of precast concrete products. Second, the amendments will provide for the operation of a refund scheme for the levy paid on ready-to-pour concrete, where that concrete was utilised in the manufacturing of precast concrete products between the levy coming into operation on 1 September 2023 and 31 December 2023. A precast concrete manufacturer will make a claim for a refund to Revenue for the repayment of any such levy paid on ready-to-pour concrete used for the production of precast concrete products. A claim may be made within four months of 31 December 2023. The declaration and refund can be made in respect of ready-to-pour concrete utilised for precast concrete products. It does not apply to concrete cast in situon sites. An amendment to the definition of concrete is also made to clarify that autoclaved aerated concrete blocks are within the scope of the levy.

I think it is important to underline the purpose of the levy. It is intended that the revenue from this levy will make a contribution towards offsetting the cost to the State arising from the enhanced defective concrete blocks grant scheme. That scheme, designed to provide redress for those homeowners whose homes have been affected by the issue of defective concrete blocks to repair, has an estimated cost that could be in the region of €2.7 billion. I believe it is essential that the entire cost of the redress scheme, which after all arises from the use of defective concrete blocks and other concrete products, is not borne in full by the Exchequer and, through it, every Irish taxpayer. The cost of the scheme, or at least the portion of it represented by the revenue that is expected to arise from this levy over time, must be borne by the industry. Of course, ultimately there will be an element of pass-through of that.

I intend to propose an amendment to this section of the Bill on Report Stage in the Dáil to ensure the reference to "final destination of use" unequivocally includes wholesalers and retailers.