Simon Harris 'remains to be convinced' on tax breaks for developers

Tánaiste said there was a range of ways to make construction more viable

Simon Harris said the Government would take a number of other steps to address viability in the construction sector in the coming weeks.

The Tánaiste "remains to be convinced" that tax breaks for developers will help increase the supply of new homes.

Speaking in Brussels, Mr Harris said the Government would take a number of other steps to address viability in the construction sector in the coming weeks.

"When I talk to people who are in the industry, and indeed, when I talk to many people who just want a home in Ireland in what is a housing emergency, I think the most important thing is that we get the viability measures right," he said. 

"There's a range of ways you can make construction more viable, particularly apartments more viable. I think we've taken some of those steps already, providing clarity and certainty around the RPZs [rent pressure zones], the planning permissions extensions, the exempted development changes we're going to make."

Asked about possible tax breaks for builders, Mr Harris referenced a Sunday Business Post interview with Ballymore founder Sean Mulryan, who dismissed the idea such incentives could be a solution to Ireland's housing crisis.

Mr Harris said: "I think the next big move we need to make on viability will be next month in the National Development Plan, where we will look at how we can better fund and faster delivery around water and wastewater — these are some of the big blocks.

"So we look at viability all of the time. I remain to be convinced that tax is the most effective tool, but there are definitely more measures we need to take on viability."

Mr Mulryan said tax reliefs were “not the answer”, amid a debate in Government and across the industry over the prospect of a return to Celtic-Tiger-style incentives for big builders.