Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware, following a Government decision taken in November 2021 that a levy be imposed on the construction sector to contribute towards the cost of the Mica Redress Scheme, the Defective Concrete Products Levy was announced as part of Budget 2023.

The levy will apply at a rate of 5% and it will come into effect on 1 September 2023. The levy will only apply to pouring concrete and concrete blocks under two harmonised EU standards. The levy will be charged at the point of first supply in the State, so ensuring that all liable concrete and concrete products manufactured and/or used here will be liable to the new levy. The Revenue Commissioners will be responsible for its operation and have the full suite of enforcement measures at their disposal to ensure compliance with the levy.

The legislative basis for the DCPL is set out in section 99 of Finance Act 2022 (No.44 of 2022) (Finance Act 2022, Section 99 (irishstatutebook.ie).

The design of the levy balances the need to ensure some of the costs of the redress scheme are met from a source other than the Exchequer, while limiting the impact on inflation in the construction sector. An analysis of the impact of the levy on construction costs been carried out with the assistance of the Department of Housing, Local Government and Heritage late last year estimated that the revised levy will have an impact on costs, with its adding in the order of 0.2% to 0.45% to construction costs depending on the type of project being undertaken.

It is essential that the entire cost of the redress scheme, which arises from the use of defective concrete blocks and other concrete products, is not borne in full by the Exchequer, and through it the 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, must be borne by the construction sector.

Once in effect, the Levy's subsequent impact will of course be monitored.