Taoiseach defends concrete blocks levy despite push back from backbenchers

Mica redress scheme could cost up to €6bn, Micheál Martin said

Mica protest at Leinster House in June. Affected homeowners are seeking 100% redress for the faulty concrete in their homes. Picture: Stephen Collins/ Collins Photos

The Taoiseach has defended the introduction of a levy on concrete blocks, despite significant push back from Government backbenchers.

Micheál Martin has said that the mica redress scheme could cost anywhere between €4.5bn to €6bn and the sector must "make some contribution" towards that.

It comes after a number of Fianna Fáil TDs called for the postponement of a new levy on concrete blocks announced as part of the budget, stating it would push house prices up by around €3,000.

Asked if the measure would be scrapped or deferred, Mr Martin said: "The Government felt that, somewhat like what happened in insurance in the past, that the sector would have to make some contribution to that enormous bill that the taxpayer has to face, necessarily to make sure that people can have a have a home to live in and have the defects remedied and renovated. That's the context behind it."

He said the full details of the levy will be fleshed out in the forthcoming Finance Bill.

Mr Martin added: "It's an enormous outlay that the Government has undertaken on behalf of taxpayers to help people in very difficult situations. 

"I think sectors have to realise that good practice must prevail, right across sectors."

Citing the various affordable housing projects that are now being developed, Mr Martin said the Government is "not slow" in introducing measures that aim to bring down the cost of homes.

"The precise impact of this from what the department is saying is quite low in respect of potential impacts on eventual house prices."