I move: (1) THAT the Value-Added Tax Consolidation Act 2010 (No. 31 of 2010), be amended— (a) in section 46(1) – (i) in paragraph (a), by the insertion of "(cac)," after "(cab),", (ii) in paragraph (c), by the insertion of ", (cac)" after"(cab)", (iii) in paragraph (cab), by the substitution of "25 November 2025" for "31 December 2030", and (iv) by the insertion of the following paragraph after paragraph (cab): "(cac) during the period from 26 November 2025 to 31 December 2030, 9 per cent in relation to— (i) goods of a kind specified in subparagraph (2) of paragraph 9B of Schedule 3, and (ii) services of a kind specified in subparagraph (3) of paragraph 9B of Schedule 3, on which tax would, but for this paragraph, be chargeable in accordance with paragraph (c);", and (b) in Schedule 3 – (i) in Part 2 – (I) in paragraph 9(1), by the insertion of "(not being services referred to in paragraph 9B(3))" after "Services", and (II) by the insertion of the following paragraph after paragraph 9A: "Supply and construction of housing as part of a social policy. 9B.(1) In this paragraph- 'apartment block' means a multi-storey building that comprises, or will comprise, not less than 3 apartments with grouped or common access; 'completed' has the same meaning as it has in section 94. (2) The supply of immovable goods, as part of a social policy, which are or, when completed, will be– (a) one or more than one apartment, used or to be used for residential purposes, in an apartment block, or (b) an apartment block, used or to be used for residential purposes, but excluding any part of the apartment block that is not used or to be used for residential purposes. (3) Services consisting of the development, until completed, of immovable goods to which subparagraph (2) applies.", (ii) in Part 3, by the substitution of the following paragraph for paragraph 14: "Housing. 14. The supply of immovable goods used or to be used for residential purposes, other than immovable goods to which paragraph 9A or 9B(2), as the case may be, applies.", and (iii) in Part 4, in paragraph 15(2), by the insertion of "or 9B(3)" after "paragraph 9(1)". (2) THAT this Resolution shall have effect on and from 26 November 2025. (3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927). The first financial resolution provides for a reduction in the VAT rate applied to the supply of new apartments to 9% from 26 November 2025. This measure will apply until 31 December 2030, at an estimated cost of €250 million in 2026, with increasing costs in the following year as more apartments are built. As Deputies will recall, the temporary 9% rate of VAT on the supply of apartments came into effect on budget night. This financial resolution extends the budget night measure to cover the construction of apartments and the supply and construction of apartment blocks, including student accommodation, from tomorrow, 26 November 2025. The 9% rate will apply until 31 December 2030. The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is required to comply. In general, the EU VAT directive provides that all goods and all services are liable to VAT at the standard rate, which in Ireland is currently 23%, unless they come within the provisions which permit the application of a lower rate. Under the EU VAT directive, member states may apply a reduced rate to the supply and construction of housing as part of a social policy. As colleagues know, Ireland has two reduced rates, 13.5% and 9%. The Government has committed to the delivery of 305,000 new homes, of which apartments will comprise a considerable share. It is recognised that a viability gap exists when constructing apartments in Ireland. As has been outlined in discussions of this measure in earlier stages and in discussions around the Finance Bill, the purpose of this measure is to reduce that viability gap and achieve wider policy goals, as outlined by the revised national planning framework. Increasing density, recognising demographic and societal changes and fostering greater social cohesion can more sustainably be realised by the delivery of more apartments. As developers are incentivised to build more apartments and to commence work on the projects which have planning permission but which are not currently deemed viable, the overall housing supply will increase. The measure is set to be in place for five years. This will allow it to cover the life cycle of a building project, which can stretch over a number of years. The legislation around VAT on property is complex. As such, this financial resolution makes changes to the text that was previously passed on budget night. These changes are to ensure that the text is in line with VAT legislation and that it achieves the original policy intention of the measure, as outlined by the former Minister, Paschal Donohoe. The measure now covers both aspects of an apartment sale sold under dual contract, that is, the sale of a site and the sale of building services to build an apartment. The revised text also includes the word "development" rather than the word "construction", which is in line with existing VAT legislation and case law. Affordability and the chance to own a home must be at the heart of all that we do and is at the heart of our housing policy. The Government has introduced a comprehensive implementation strategy, which is in place to support the various affordable housing schemes now being delivered by a range of partners. However, to meet the housing needs of our people there has to be private sector involvement. This is what this VAT measure does - reducing the viability gap that developers face when considering whether to advance the projects across the country that have planning permission but where the sale of apartments may not lead to a profit. I am also moving a financial resolution, as the Ceann Comhairle alluded to, in relation to the help-to-buy scheme. As a consequence of the VAT rate reduction for an apartment, it is necessary to amend the definition of "qualifying residence" in section 477C of the Taxes Consolidation Act 1997, which provides for the help-to-buy scheme, to reflect this second rate of VAT. This will ensure that new build apartments will continue to be included in the scope of the help-to-buy scheme. An amendment to section 477C has accordingly been proposed. To avoid a period between 26 November 2025 and the enactment of the Finance Bill, where such apartments would not qualify for help-to-buy during that period, the change to the definition of "qualifying residence" in the proposed amendment to the scheme will need to take effect from 26 November 2025 also.

Sentiment score: 0.05

I thank colleagues for their contributions and interventions. First, on the issue raised by Deputy Collins, I will certainly make contact with Irish Water. I have a clear view that State agencies should meet public representatives. There is a thing called democracy. It is important that State agencies engage respectfully, regardless of where people are on the political spectrum, and respect the mandate of people in this House and at local level. Uisce Éireann should meet with the Deputy and the other representatives in relation to that issue. I thank the Deputy for highlighting it. On this issue, it comes down to whether we accept or do not accept that there is a viability gap when it comes to construction, particularly of apartments, in this country. I heard many references to what my Department estimates or predicts, but here is something else my Department predicts and estimates. It estimates that there are approximately 98,000 properties in this country that have planning permission in place but remain uncommenced. Around 42,000 of them are apartments in Dublin. We have a situation today where there are apartments that could be built but have not been built because they have been deemed unviable. This Government and I refuse to be prisoners to ideology. It is about adopting measures that reduce the viability gap. Contributors and colleagues are right. Deputy Collins is right. This measure in and of itself is just a measure. It needs to be seen alongside a range of measures that we are taking regarding housing. Deputy Boyd Barrett had to head off, but he made the point around if there was no policy change. There has been a policy change. It is called the Government's new housing plan. It is called the revised national development plan. It is called the national planning framework. It is called the infrastructure delivery proposals that the Minister, Deputy Chambers, will bring to Cabinet shortly. It is called the budget that was just delivered and the Finance Bill that is working its way through this House. I accept that standing still and hoping that everything is going to work out all right on the night is not going to get us to where we need to get. That is why we are taking decisions that may not be popular with everyone in this House, but I genuinely believe they will result in more apartments being built for our young people, the very people that all of us want to see with a roof over their head and an ability to buy a home again. I say to the young people who watch these debates and hear these debates, this measure is for you. It is not for any developer; it is to make sure that more apartments are built so that you have an opportunity when you go onto websites and search to buy somewhere. When I meet young people across this country, that is what they want. If you want to see a reduction in price, you need to see an increase in supply. I reject that this is about any sort of correction. This is actually about clarifying and expanding further the provisions the then Minister, Paschal Donohoe, announced. I accept the point that there are different views in relation to these measures, but I also accept the point that colleagues in opposition engage constructively, saying if we are going to go down this road we must make sure that approved housing bodies are included. This is an effort to ensure that happens. There has been much reference to developers, developers, developers. First, developers are not bad people. They are the people who build things, and we need to build things, by the way. None of us in this place build things. Good luck trying to build a house without a developer. It is not just about developers, however. Social housing will benefit from this because approved housing bodies will qualify. Affordable housing will benefit from this because approved housing bodies will qualify. Students will benefit from this because student accommodation will qualify. I note that there have been lots of suggestions made in relation to when this is commenced and the likes, but ultimately VAT is a consumption tax. It is placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. If legislation was introduced that sought to apply different rates of VAT to the sale of identical goods at the same point in time on the circumstances or timing of when work on those goods began, we believe it would likely breach the principle of fiscal neutrality. I am advised by my officials and by Revenue that they are satisfied that the principle of fiscal neutrality would not allow for VAT to be applied in the manner that some Deputies might have suggested earlier on and that Deputy Doherty's amendment suggests as well. There has been a lot of reference to first-time buyers and help to buy. This is a scheme to make sure that those who avail of help to buy can avail of the apartments that are produced as a benefit of the reduced VAT rate. There is a lot of talk about help to buy and what help to buy has done regarding the price of new houses. The Mazars review in 2022 found that there was no definitive evidence that help to buy pushed up the price of new homes. It actually also found that the prices paid for new homes by people who received help to buy relief were slightly lower than new house prices in the economy and generally, likely because of the price cap. We all know there are many factors that contribute to the rise in home prices, ultimately the lack of supply being the most compelling one. When talking about first-time buyers, I should also say that while we have a long way to go and we are living through a housing emergency, we have this year thankfully seen the highest number of first-time buyers since 2007. I agree with those, including Deputy Tóibín, who say that there are other serious blockages here, including the infrastructure delivery, the judicial reviews and the planning system. They can expect the Government, through the work of the accelerating infrastructure task force, to come forward with proposals on how to accelerate the delivery of infrastructure, including enabling infrastructure for housing, in the coming weeks. I commend these two resolutions.

Sentiment score: 0.21