The construction industry still has to contribute financially to the mica redress scheme, the Agriculture Minister Charlie McConalogue has said.
The Government originally intended to do so by charging a 10% levy on concrete blocks but is expected to U-turn on or substantially alter that policy in the coming days.
The scheme was expected to raise €80 million but opponents said the cost of the levy would simply be passed onto buyers and do little to penalise the construction industry.
Minister Charlie McConalogue - whose Donegal constituency has the highest number of mica homes in the country - described work on the levy is “ongoing”.
“From the outset of the micra redress scheme, it was made clear there would be a levy in relation to part of the approach in relation to funding the scheme,” he said.
“That was then followed through in relation to Budget Day as part of an overall €11bn budget package in relation to supporting the country to meet the challenges of the months ahead.
“In the context of how that’s applied, obviously, I think it is important that the industry itself makes a contribution in relation to that.
“Obviously, in relation to how that’s structured it’s important that we look at how we minimise the impact on people while actually ensuring the industry itself makes a contribution.
“So that’s the considerations that Minister Donohue is making and consulting in relation to the Finance Bill that should be clarified shortly.”
On Friday, Taoiseach Micheál Martin hinted that the levy was no longer viable in the current economic climate.
“This was agreed in November, prior to the war,” he said.
“Since then, we’ve had a war in Ukraine, we’ve had huge increases in energy prices and increases in commodities in respect of the construction industry also.
“So, we have to balance this.”
