A rural TD has called on the government to abandon plans for a concrete levy claiming that it would have a negative impact on the agricultural and construction sectors.
Deputy Michael Collins said that according to the Irish Concrete Federation (ICF), the proposed 5% levy on concrete products will significantly drive-up building costs for homes, infrastructure, and agricultural projects.
Speaking from his Cork South West constituency, Deputy Michael Collins stated: “The government’s proposed 5% levy on concrete products, intended as a half-baked measure to fund the Mica Redress Scheme, will significantly drive-up building costs for all homes, infrastructure, and agricultural projects.
“According to a new report by the ICF, the levy will add a staggering €1,285 to the cost of building a three-bed house and over €295 million in delivering on the target of 33,000 homes each year until 2030.
“The ICF’s report highlights that up to 80% of the revenues generated from the levy will come from ready-mix concrete rather than concrete blocks, which were at the heart of the mica issue.”
The independent TD said that for the last two years, the cost of ready-mixed concrete rose by 43% according to the Central Statistics Office (CSO), and concrete block prices rose 30% over the same period.
“Forging ahead with a new levy under these circumstances would be highly reckless,” Collins said.
Concrete levy
The rural TD said that the proposed government levy on concrete products comes at a time when construction costs have already risen dramatically as a result of the energy and international crisis.
“Farmers and agricultural projects will face even greater increases in essential structures’ costs, such as silage pits and wind turbines,” he said.
“The ICF report highlights that the levy will add a staggering €5,260 to the costs of building a single wind turbine.
“The lack of clear guidance and information regarding the levy’s enforcement raises serious concerns for cement producers, especially those in border counties. Potential competition from Northern Ireland compounds the worry, potentially leading to job losses and economic disruptions.”
The rural independent TD has now called for the government to scrap the concrete levy implementation and conduct a comprehensive impact assessment.
“Alternative funding sources for the Mica Redress Scheme should be explored, including going after those responsible, which should include banks and insurance companies,” Deputy Collins concluded.