Concerns have been raised that the 5% levy on concrete which is due to come into effect on September 1, 2023 will “exacerbate the challenges faced by farmers”.
The levy on ready-mix concrete and concrete blocks could have “adverse consequences” for the agriculture sector, the leader of the Rural Independent Group, Mattie McGrath said.
An urgent debate on the levy before the Dáil recess from next Monday (July 17) with the aim of deferring its implementation is “imperative”, Deputy McGrath said.
The concerns of farmers, homebuilders, and the construction sector must be addressed, and the government cannot “turn a blind eye to the potential ramifications of this levy”, he added.
Building costs
Wholesale prices for ready-mixed mortar and concrete were 26.1% higher in May 2023 than during the same month last year, latest figures by the Central Statistics Office (CSO) show.
Concrete block and bricks were 17.7% more expensive than in 2022, while the price of other concrete products including precast rose by 9.5% in the one-year period, the CSO said.
Deputy McGrath said the levy will push up building costs and have a “devastating impact” on the construction sector, and hinder the progress of housing, agricultural and public work projects.
Concrete levy
The deputy accused Taoiseach Leo Varadkar of “ignoring the pressing issues” facing the construction and agricultural industries regarding the incoming levy.
Raising the matter in the Dáil recently, Deputy McGrath said that despite seeking answers, the Taoiseach “blatantly disregarded the serious concerns” surrounding the proposed levy.
Commenting that the agricultural sector will face “adverse consequences as it is already unfairly targeted by this government’s policies”, the deputy said:
“This levy will only exacerbate the challenges faced by farmers at a time when they require support and encouragement.
“According to a KPMG analysis of cost inflation, the levy will result in an additional cost of €1,285 for delivering a three-bedroom semi-detached concrete block house.
“Furthermore, it is estimated that the levy will burden the government’s housing targets by nearly €300 million,” Deputy McGrath added, describing the analysis as an “alarming prospect”.