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

Pearse Doherty: Mr. James has made the point that this is contrary to what is required. Does he believe this challenges the viability of some projects? I am mindful it is coming on the back of changes in terms of the Central Bank, which has acknowledged there will also be modest increases in house prices as a result of that.

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

Pearse Doherty: Can I ask one quick question with the Chair's indulgence? There are two types of blocks that will be covered in this legislation - the typical masonry block and the aircrete or autoclaved block. How much of the second, light weight ones, are used on the Irish market? I know Quinn manufacture them here but they are obviously imported as well. They are very thermal efficient and all the rest.

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

Pearse Doherty: I thank Mr. Hennessy for being able to present to the committee. I understand that there were some difficulties initially, but I am glad that the officials were able to rethink matters. I wish to seek a few clarifications. I understand that the levy will apply to concrete block materials that are sold from the North into this State. Is that correct?

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

Pearse Doherty: Does Ms O'Callaghan mean when the developer uses them?

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

Pearse Doherty: Let us say I wish to build a house in Donegal and am based in Buncrana but source my blocks from Derry. In that instance, who pays the levy?

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

Pearse Doherty: Would I have to pay the levy?

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

Pearse Doherty: If my house is a self-build, why do I have to pay the levy?

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

Pearse Doherty: Exactly. If I buy the blocks from a company in Letterkenny, that company will pay the 5% levy to Revenue and will have the invoice.

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.

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