Government leaders agree to extend development levy waiver

Taoiseach Simon Harris (centre) with Tánaiste Micheál Martin (left) and Green Party leader Eamon Ryan. Picture: Brian Lawless

Government leaders have agreed to formally extend the development levy waiver, as part of efforts to reduce housebuilding costs.

At a meeting of the Cabinet committee on housing, the three Coalition leaders and the housing minister agreed that both the development levy and water connection charge will be scrapped for the remainder of the year.

Following this agreement, Housing Minister Darragh O’Brien will bring a memo to Cabinet to operationalise the proposal.

Mr O'Brien previously said the measure has cut the cost of building a house by €20,000.

Today, Taoiseach Simon Harris said his priority on housing is to find “practical measures to support supply”.

"I think we have a shared view that the waiver on the development levies is something that's working ... if you have an initiative that's working, if you have an initiative that's making a difference, that could make an even further difference, that's something I would like to prioritise with Minister O'Brien," he said.

October budget

Meanwhile, the Taoiseach has confirmed there will be changes to tax, social welfare, and family supports in October's budget, but said he would not be providing a “running commentary on every idea”.

Finance Minister Michael McGrath over the weekend said there would be a "substantial" tax package in the next budget. This is likely to see around €1,000 a year cut from the tax payment of average workers. There is also set to be a further €12 a week increase in core social welfare rates and €10 added to the child benefit payments.

However, Mr Harris today said "every party has an ard fheis" and has a right to "set out its stall". However, he said he would not be engaging in six months of speculation over the shape of the budget.

"As Taoiseach, I have no intention of providing a running commentary on every idea we hear in relation to the budget," he said. 

"The next milestone will be the summer economic statement where Minister McGrath and Minister [Paschal] Donohoe will have an opportunity to set out the parameters in terms of what the budgetary framework will look like.

“What I can definitely say is because of the condition that our economy is now in… we will be in a position to deliver a budgetary framework that will make progress on a number of areas, including in relation to tax, social welfare, supporting children and parents.

“But I’m not going to provide a running commentary at every moment between now and the budget."

'Very concerned' by fire

At an event in Lucan, Co Dublin, Mr Harris also expressed his concern after a fire broke out at a facility earmarked for international protection applicants.

“I understand there’s an investigation ongoing in relation to that incident, and I don’t want to say anything in the position I hold that prejudices the outcome of that,” said Mr Harris.

“But, of course, I’m very concerned to see any fire happening in any buildings or indeed any location, particularly at a time when we live in a country that already has it constraints when it comes to housing supply.

“For anybody to take any action that will in any way further worsen that situation is extraordinarily unhelpful and in a very, very difficult and challenging time, when Ireland is responding to a humanitarian crisis.

“I’ll let the Garda investigation run its course before I comment further on any motives.”