Cutting the rate on a controversial levy on concrete blocks, adjusting its scope or deferring it entirely are being considered in an effort to defuse political tensions around its introduction.
Sources said on Wednesday that a combination of all three may also be possible, with some indicating that there should be a formal engagement with the concrete and construction industry about the levy, seeking ideas from them.
It follows a meeting of Fianna Fáil backbenchers on Tuesday, which heard widespread insistence that the time was not right for a levy. A core group within the party is pushing back against the introduction of the levy, planned for April 3rd.
Members met with Minister for Housing Darragh O’Brien, who is working on the issue with Minister for Public Expenditure Michael McGrath on Tuesday. It is expected the ministers will engage with them again before liaising with Minister for Finance Paschal Donohoe.
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While the view is not unanimous across the party, several sources within the Fianna Fáil party who attended the meeting on Tuesday expressed the strong view that the 10 per cent levy would not be introduced.
“I don’t see it being brought in next April, I see it dying a death,” one said, predicting there would be a “waffly” line issued saying there had been a decision to postpone the levy. Sources at the meeting said they felt their views had been taken on board by Mr O’Brien.
However, sources elsewhere in government insisted that the proposal enjoys support at leadership level and while there “might be some amendments, I don’t see it being postponed”.
A second senior source in government said there has to be a levy “of some sort” and it has to apply from some point next year, and that it wasn’t possible to have a commitment to spend billions across several years backed only by general taxation.
Speaking points on the issue sent out by the Fianna Fáil press office to TDs and Senators emphasised, in bold type, that “further detail on the levy and in particular in regards to the specific products it will apply to, wil be set out in the finance bill 2022 when that is published on October 20th”.
“In the meantime,” the parliamentary party was told, “any party is welcome to put forward alternative proposals if they have them.”
In the Dáil on Wednesday, Mr McGrath has deflected questions about whether a levy on concrete products will form part of the Finance Bill when it is published next week.
But he said the mica and apartment structural defect repair schemes will cost more than €5 billion, which “somebody will have to meet at some point in time”.
Mr McGrath told Sinn Féin’s Matt Carthy in the Dáil that the Government “is engaging with all of those who expressed a view in relation to this issue”.
It comes as the country’s largest trade union came out against the levy. In a statement released on Wednesday, Siptu sector organiser John Regan said the union had seen a “high level of concern” from the concrete trade.
