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Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: If I buy the blocks from Derry, it is not the Derry company that will pay Revenue.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: So, my house is a self-build. Between 5,000 and 6,000 self-build projects happen every year. If I source the blocks from outside of the State, must I pay the levy to Revenue.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: How will I do that in practical terms?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Is that all self-assessment?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: There will be some craic with this levy in the Border counties. Figuring out who will pay it is going to be a nightmare. For example, the houses of the families affected by the Mica scandal are all self-builds, so they will have to act like contractors and do all of the work themselves. They will now have to register with Revenue, obtain a personal identification number and calculate the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Yes, I know. I ask Ms O'Callaghan to pass on my comments to the Minister.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Applying the levy will be a challenge to say the least. I take the point made by Ms O'Callaghan that her job is to give effect to the decisions made by the Minister. It will be interesting to see how the levy will be applied, and that will be the same for anything outside of the State. Let us delve into the costs that will apply to a three-bedroom semi-detached house, which is what...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Is that roughly 1,300 sq. ft or 1,400 sq. ft?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Is that the typical size of urban homes? Typically, one-off houses in rural areas would be larger than that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: It is 119 sq. m for a scheme development, but one-off housing is typically larger than that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Okay.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Yes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: So 20% will involve a higher cost than what Mr. Armstrong is suggesting because they are not scheme developments or apartments. They are larger and thus will involve the use of more concrete and blocks.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Was it the Department for Housing, Local Government and Heritage that did the analysis in the note we received?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Okay.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Mr. Hennessy suggested that the levy will "result in an increase in construction costs while taking account of variables of between €400 to €800". However, that is not the all-in cost. Is that not so?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Yes, but for anybody watching these proceedings, the public line that has been given by the Minister over and over is this same. Let us deal with that. This is not the real cost, that is, the all-in in cost of the levy on a house. Is that not so?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Yes, but just so everybody-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: Yes, but just so everybody understands that the impact of this levy, as currently proposed, on a typical three-bedroom house is not the upper end of €800 all-in cost. Is that not a fact?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Concrete Block Levy: Discussion (26 Oct 2022)

Pearse Doherty: I refer to the all-in cost. Does Mr. Armstrong understand? I want to make it simple.

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