Robbie Gallagher (Fianna Fail) | Oireachtas source

We are all aware of the devastating consequences of the mica situation on homeowners in County Donegal and other affected counties and we know this will cost the taxpayer billions of euro to put right. We also know that the State will and must pursue those responsible where possible. However, the proposed concrete levy punishes many who had no part in this. All concrete manufacturers fully recognise the devastation caused to affected homeowners arising from damage to block work in their homes. However, the overwhelming majority of concrete manufacturers were not directly involved in this issue. Many concrete manufacturing operations fall entirely outside the housing sector yet all concrete manufacturers providing products to all construction sectors will be affected by the proposed new levy.

Two wrongs do not make a right. Apart from the fact that the introduction of a levy on concrete products will lead to further upward pressure on the cost of building houses, potentially to the tune of €3,000 or more per unit, the introduction of a levy could lead to further cost inflation across all sectors of construction in this country, including schools, hospitals, nursing homes, the farming sector, energy facilities, sports venues, transport infrastructure and commercial and industrial developments.

A levy applied to concrete products for export will have a devastating impact on the viability of Irish concrete exporters. Irish pre-cast concrete manufacturers export approximately €150 million worth of product to the UK each year. These Irish exporters are already dealing with the spiralling cost of raw materials, increased labour costs, Brexit-related costs and currency fluctuations. The levy could effectively close the UK market to these Irish exporters with knock-on effects for the workforce. Conversely, concrete products manufactured outside the Republic of Ireland will not be subject to this levy leading to an unfair advantage for imported products.

In Border counties such as Monaghan and Cavan, competitively priced imported products exempted from the levy would replace locally produced concrete products with obvious implications for employment. Jobs will be lost. Local companies compete with other manufacturers north of the Border, the UK, Belgium and the Netherlands. Imposing a 10% levy will effectively result in a competitive disadvantage compared with other imported systems on the market. Concrete manufacturers with contracts in place for 2023 and beyond now face a loss-making scenario with the impact on the viability of many businesses within the supply chain. Local companies with hundreds of employees in the Border counties of Monaghan, Cavan and Meath are frightened by the defective concrete levy and insist they cannot absorb the proposed 10% increase. They see that tight margins mean they have no choice but to pass this on to the consumer in order to remain viable. Local companies that are proud of the reputation they have developed over many years of hard work have been receiving calls from long-standing clients in the UK questioning the integrity and quality of products they manufacture in light of the negative publicity that has surrounded the news of this levy. Companies also face a dilemma with regard to no contract pending and the potential for this levy to make such contracts unviable.

The cost of the mica redress scheme will be enormous. However, this levy as it currently stands is unfair and could do more damage to local industries and create unemployment in the Border region. For that reason, I ask the Minister of State, Deputy Fleming, to facilitate a meeting with the relevant stakeholders and officials from his Department to discuss this issue.