An independent TD has called on the government to defer the implementation of the concrete levy due to concerns over the inclusion of precast products.

According to Galway East TD Seán Canney, this would include slats for cattle.

The Defective Concrete Products Levy (DCPL), which is charged at a rate of 5% of the open market value of a concrete product, is set to come into effect from September 1.

It was announced as part of last year’s national budget (Budget 2023) for the purpose of funding the Defective Concrete Block Scheme, also known as the mica redress scheme.

Speaking today, Canney called on the government to defer the implementation of the levy, citing concerns over the products it will apply to.

“I am calling for the deferral as the Department of Finance and Revenue are now including precast concrete products in the levy which was never the intention.”

Canney added: “The department and Revenue are confirming that the legislation applies to the ‘concrete ingredients’ of precast concrete. I consider this to be a blatant reneging of the [Minister of Finance, Paschal Donohoe’s] commitment to exclude precast from the levy in the first place.

According to the Galway East TD, the levy will increase the cost of precast products and it will damage the competitiveness of Irish precast exporters on the UK market.

Canney also said that, as there is no levy on the precast product itself (as opposed to its concrete ingredients), there is no provision in the legislation to apply the levy to imported precast concrete products from Northern Ireland (as there is for imported readymix concrete imports).

“This obviously immediately confers a competitive advantage to Northern Irish precast manufacturers on the Republic of Ireland market. It’s worth noting that the two largest precast manufacturers on the British Isles are based in Northern Ireland.

“Precast concrete suppliers are contract bound on fixed priced contracts up until the middle of 2025 and therefore have no scope to recoup the levy despite assurances from Minister Paschal Donohoe that precast concrete would be excluded from the levy,” Canney added.

According to the TD, the levy will apply to products including bridge beams, cattle slats, roof tiles, paving, ornamental concrete, garden furniture, and several other products.

“Due to the conflicting take on the levy between officials, Revenue, and government, the only solution is a delay in the implementation of the levy and a change to the legislation…so that it can be implemented the way the government intended,” Canney said.