MINISTERS COULD DIP INTO FUND IF NEEDED
CONCRETE TAX TO PAY FOR MICA REDRESS
THE Government cannot rule out dipping into the €6 billion rainy day fund early next year to help people struggling with the cost-of-living crisis, the Public Expenditure Minister has said.
Michael McGrath said it was “prudent” of the Government to set aside the funds, despite not intending to use them.
“It is a sensible thing to do it is the right thing to do,” Mr McGrath said.
He added: “There is an incredible amount of volatility in the international economy, not least in the energy markets.
“We don’t know what will happen with the terrible war in Ukraine.
“But it’s a good thing that we have that reserve. We have that funding there if we need it.
“We don’t intend to use it but we cannot rule anything out.
“It all depends on circumstances. And we will use our best judgment as time goes by, as to what is the right decision or course of action to take.”
Mr McGrath made the remarks after answering questions alongside Finance Minister Paschal Donohoe from members of the public during RTE Radio
1’s Today with Claire Byrne annual Budget phone-in show.
Surplus
Mr Donohoe said the Government had ensured there was a Budget surplus so that they have “the ability to help if conditions changed”.
“Michael [McGrath] and I have been united, as has the Government, in saying we’ve brought forward measures that go into a sixmonth period to provide as much certainty as we can.” Mr Donohoe described the Budget measures unveiled on Tuesday as “fair”.
THE 10 per cent levy on concrete blocks will make houses unaffordable for people trying to build or buy their first home, the Dail heard yesterday.
It is estimated that the new levy, which will fund the redress scheme for homeowners affected by mica, could add from €2,000 to €4,000 to the cost of building an average €300,000 home.
The €80million annual yield from the levy will be set aside specifically to pay for the rebuilds of homes ruined because they were built with defective blocks containing pyrite and mica.
It is due to come in on April 3, 2023.
Independent TD Sean Canney said it would come at “a time when we have a thriving inflation within the construction industry which is creating havoc for young people who are trying to build their own houses.
Havoc
“It is creating havoc for local authorities who are trying to build social housing.
“It will add to the overall cost of building all our infrastructure in this country.”
Fianna Fail TD Jackie Cahill said the measure should be postponed until the price of concrete comes down.
He said: “I agree with the concept, but could we postpone it until costs come back to something like normality.
“They’ve gone up 50% in the last year. I am not against the concept, but it’s not the opportune time to do it.”
And Fianna Fail TD Padraig O’Sullivan added: “In a time when we need both private, social and affordable houses
I don’t think it’s appropriate we would have an additional levy on blocks and I think it should be revisited.”
The Taoiseach insisted the Budget provides numerous supports for people buying houses.
Micheal Martin said: “I would point out the enormous supports the Government is giving to young people in respect of affordable housing — over €1.3 billion of an investment and an overall package to deliver thousands of affordable houses next year, and to help people to buy and to rent at an affordable rate.”
The Taoiseach faced further criticism in the Dáil for not doing enough on housing in the Budget.
Sinn Féin leader, Mary Lou McDonald, got into a heated row with Mr Martin during Leaders’ Questions.
She said: “The Government’s record in office is that a housing crisis has morphed into a housing disaster.”
Ms McDonald accused the Government of not doing enough for renters with the “measly” €500 a year rent credit introduced by Housing Minister Darragh O’Brien.
The opposition leader said it was “inadequate” and needed to be paired with a rent freeze if it was to have any meaningful impact.
She went on to say: “Sinn Féin has consistently and repeatedly called on the Government to tackle the extortionate rents that are crippling workers, families and students”.
AT ODDS: (from top) Canney, Martin and Mary Lou