Donohoe says view on tax breaks for developers ‘unchanged’

By Cillian Sherlock, PA

The Finance Minister has insisted his resistance to tax breaks for developers is “unchanged”, after his party leader said he was “open” to such measures.

Minister Paschal Donohoe said there were “risks and dangers” around taking that step, having previously argued that schemes were expensive and damaged the economy.

Earlier, Fine Gael leader and Tánaiste Simon Harris said he was “open to considering” tax breaks for developers.

Mr Harris told Newstalk Breakfast he would be open to the measure if it was “very targeted” and “fully focused on viability issue”, adding: “And if we are crystal clear: ‘That’s it, get on with it, build the homes’.”

Speaking to the media at the Fine Gael think-in at Mullingar, Co Westmeath, Mr Donohoe said both he and his party leader were “very much aware of the risks and dangers of the past”.

He said their view on tax breaks is “unchanged”, telling reporters: “The Tánaiste and myself are really clear on the importance of building more homes within our country, how important that is to meet the needs of our society and how important it is for the future of our economy as well.

“There are always, and have always been, supports in place to allow more homes to be built.”

Earlier, Mr Harris also said there is a need to “move away” from one-off Budget measures on the cost of living.

The Fine Gael leader said “help is coming” on the cost of living in the Budget but added that one-off measures are “not a good way to run a country”.

Speaking to RTÉ’s Morning Ireland from the think-in, Mr Harris said: “We’ve got to move away from this kind of one-off ‘will I get, won’t I get?’

“That’s no way for a family to plan, no way for a business to plan.”

Several of the so-called, cost-of-living measures, such as energy credits, have been features of successive budgets.

Pressed on whether he accepted that families had already factored such measures into their financial planning, Mr Harris said: “There’s probably pangs of anxiety when people hear, ‘Oh, the one-off measures aren’t going to be there’.

“So, let me assure people that, as we frame this Budget, we will, of course, be looking to do things to help them with their cost of living: whether that’s things for carers; for older people in relation to their pensions; whether it’s keeping the lower rate of VAT on energy; I think that’s a very important measure – whether it’s looking at our small and medium businesses and what we can help them to do with their cost base, the cost of education, there’s lots of things that we can do.”

He added: “Help is on the way, there will be measures to assist them.

“But what we want to do is make sure they’re permanent, sustainable measures, not this idea of every year a family having to turn on the Budget and see, ‘will I be getting a double payment?’.”

He added: “This idea of, ‘they’re going to throw a bit of money at this year, and maybe it’ll be there next year’ is not a good way to run a country.”

Mr Harris also said he we was a “signed-up believer” to introducing a second tier of child benefit, but added that it would be a multi-annual project and requires constructive work with Government colleagues “to get there”.