Michael Healy-Rae (Kerry, Independent)
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162. To ask the Minister for Finance if contractors working on public works contracts will be able to recover the additional cost of the proposed tax on concrete and concrete products from the taxpayer; and if he will make a statement on the matter. [49261/22]

Michael Healy-Rae (Kerry, Independent)
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163. To ask the Minister for Finance the projected increase in gross costs of public works contracts due to the proposed tax on concrete and concrete products. [49263/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 162 and 163 together.

The Deputy will be well aware of the difficult issues facing households in parts of this country who were badly affected by defective concrete products, which were used in the construction of their homes.

That is why this Government has put in place a comprehensive redress scheme to support them. The scheme is currently estimated to cost the exchequer in the region of €2.7 billion euro. This is on the basis that it will support approximately 7,500 affected householders.

A redress scheme of this scale and nature is only possible if industry make a contribution. That is why the Government also decided last November that a levy should be put in place so that the construction industry would make a contribution that would go some way to offset the significant costs.

I announced this levy during my budget 2023 speech. It will be set at a rate of 10% on concrete blocks, pouring concrete and certain other concrete products. It will apply from 03 April 2023 and is intended to raise in the region of €80 million per annum.

The levy will be applied to all in scope products irrespective of whether they are used in public works or not. The full range of in scope products was detailed in Annex C the Budget Day publication “Budget 2023: Tax Policy Changes” which is available at www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.