Builders demand minister proves cartel claims
Minister of State for Housing Batt O’Keeffe claimed at the weekend that some builders in the Dublin area have “shut up shop” in response to the downturn in property prices.
He also said that the cartel is waiting for the present buyer’s market to end before increasing availability of new houses.
However, former minister of state and current director general of the Construction Industry Federation Tom Parlon has slammed Mr O’Keeffe’s claims.
Mr Parlon accused the minister of being out of touch with the realities of the housing industry and has written to the minister requesting an urgent meeting to ask him to furnish proof for his allegation.
“The industry is asking whether the minister is in touch with the realities of the housing market,” said Mr Parlon.
Mr O’Keeffe urged builders to “slash their prices” at the weekend and expressed fears about an availability problem if there’s a reduction in housing output across the board.
However, Mr Parlon said that transaction taxes in Ireland are among the highest in Europe, with every 10,000 houses built generating €1 billion for the Exchequer through a range of taxes.
While demand for houses and apartments in Dublin is at 20,000 per year, Mr Parlon said it was impossible to build more than 10,000 units.
