Ryan determined to impose tax on land hoarders in Budget 25

Former Green Party leader Eamon Ryan said implementing the Residential Zoned Land Tax was 'absolutely critical to addressing the housing crisis we face'

Transport Minister Eamon Ryan said the residential zoned land tax has 'been four years in the making'. Picture: Stephen Collins/Collins 

The Green Party will not back down on a tax aimed at land hoarders, Eamon Ryan has said.

A row broke out among the Coalition parties last month over a plan to defer the residential zoned land tax, following concerns being raised by Finance Minister Jack Chambers the tax could hit active farmers. Discussions are ongoing about how a carve-out for those farmers might look.

The tax itself is set to hit landowners at a rate of 3% of market value of any land that is earmarked for housing development.

The Green Party took aim at Fianna Fáil in the wake of the decision to defer the tax, with one party source saying Fianna Fáil had made “more of an election decision than a policy one”.

Speaking in New York on Monday, the former leader of the Green Party said they would "not fudge" the tax and would see it included in next week's budget.

"I think we have to see the residential zone tax introduced," he said. 

"It's been four years in the making. It's absolutely critical to addressing the housing crisis we face, where we have to make sure we create a country where we can build housing for our younger people. 

"And that mechanism, and that one part of the toolbox we have is, in my mind, one of the most important.

"So, I think it's vital to get agreement. 

We can't fudge that. We can't back down on that one."

Mr Ryan said the issue "is complex" and "no one wants to put an active farmer" out of work, but said the issue affected a small number of farmers.

'Sensible' proposals

Speaking on the same issue, Taoiseach Simon Harris said conversations were still ongoing in relation to the tax, but said Finance Minister Jack Chambers' proposals were "sensible".

"The minister for finance has brought forward proposals, I think those proposals are sensible," said Mr Harris. 

 Taoiseach Simon Harris: 'I am confident an agreement can be reached'. Picture: Sam Boal/Collins 

"I think the Government needs to be able to do more than one thing at a time here. I want people who hoard land to pay a tax, and that zoned land to be used for housing.

"But, at the same time, an active farmer is not a land hoarder and it is offensive and insulting to suggest they are. I know the minister for finance is coming up with a mechanism to decouple those two issues. He briefed us at the leaders' meeting on that. 

"I understand there is still engagement going on, and I hope it can be resolved later this week. The proposal isn’t fully agreed yet. I am confident an agreement can be reached."

Mr Harris also indicated next week's budget would include a cost-of-living package that was substantial, and indicated it would likely feature repeats of measures such as energy credits.

"I will say that many things we did in last year’s cost-of-living package worked very well," he said. 

"I think they should be replicated. It is true inflation is falling, but it hasn’t been felt around the kitchen table yet, and therefore we do need to have a significant cost-of-living package of scale. 

"Being very honest, the final size of the package will depend on the decision the Government makes on energy supports."