Tax breaks for developers? Harris 'remains to be convinced' it's the best tool to boost supply

TÁNAISTE SIMON HARRIS has said he remains to be convinced that tax breaks for developers is the most effective tool when it comes to boosting housing supply. 

Speaking in Brussels this morning, where he is attending a Foreign Affairs Council meeting, he referenced an interview with top builder Sean Mulryan in the Business Post newspaper this weekend, whereby the developer dismissed the idea that tax breaks is the solution to Ireland’s housing crisis.

The Ballymore founder and chairman said tax reliefs were “not the answer”, stating that getting more land zoned and infrastructure built should be priority.  

“The fact that those who are responsible for building many houses actually suggested other practical steps that could be more impactful. 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,” said the Tánaiste this morning.

Harris said there’s a range of ways to make construction more viable, particularly apartments.

The next “big move” government will take is the publication of the National Development Plan next month, which will set out and fund faster delivery around areas such as wastewater treatment and other “big blocks” holding up construction, he added.

“I remain to be convinced that tax is the most effective tool, but there are definitely more measures we need to take on viability,” said Harris.

While the Taoiseach said last week that he did not want to speculate on any potential tax breaks for property developers, stating that “very significant priority” will be given to the housing issue in the upcoming Budget. 

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“Housing remains the number one priority in all of our plans, budget, national and the development plan,” said Micheál Martin.

The National Development Plan, due this summer, will be key, he said, stating that creating certainty in policy to attract private sector investment is going to be crucial.

Earlier this year, Finance Minister Paschal Donohoe strongly came out against the reintroduction of Celtic Tiger-style tax breaks for property developers, putting him at odds with the Taoiseach who said the government was exploring the idea of possible tax breaks for private housing developers in a bid to boost supply.