Fianna Fail Demands Tax Cuts For Developers - No Shame

SPN

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The Sunday Business Post is reporting that the FFailures are threatening to pull the plug on the Confidence and Supply Agreement if the Minister for Finance does not provide tax cuts for Developers.

https://www.businesspost.ie/politics/fianna-fail-demands-tax-cuts-developers-solve-housing-crisis-396861


In a major policy shift this weekend, the party's housing spokesman Barry Cowen (brother of Brian Cowen, the Finance Minister who bankrupted Ireland in the early noughties by cosying up to developers and allowing them to run riot) said their party is demanding that the VAT rate be cut to 9% in next month's budget, for which the Government will need the FFailures approval to pass
Talk about putting the gun to the head of the Government in a shameless and blatant way.


"We're looking for a VAT holiday for a sunset period for the construction sector" Cowen told the Business Post
Donations must have been down at the Galway Festival this year, and there's an election looming.


"We just have to be radical here" Cowen said. "I don't buy this thing about the Department of Finance not believing it's feasible or practical. That's rubbish"
For decades they've been robbing us blind, and now they want to to it all over again.

No Shame!
 


gijoe

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Invest in large tents now - there will be a big demand for them come the next Galway races I predict!!
 

Franzoni

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[video=youtube;BUptBgyzbyg]https://www.youtube.com/watch?v=BUptBgyzbyg[/video]
 

Sync

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We need more construction, both of homes and commercial sites. This is a potential way to encourage that. What legal, practical alternatives do you have to boost both of those?
 

gijoe

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Problem is that these temporary tax measures become very permanent. Hotel and West of the Shannon residential incentives survived throughout the boom despite it being blatantly obvious they were no longer needed for years. And the more recent VAT reduction for the 13.5% rate to 9% was only supposed to be a 3 year measure but is going on now for about 6 years despite the tourist industry going gangbusters for the last 3 years.
 

realistic1

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Problem is that these temporary tax measures become very permanent. Hotel and West of the Shannon residential incentives survived throughout the boom despite it being blatantly obvious they were no longer needed for years. And the more recent VAT reduction for the 13.5% rate to 9% was only supposed to be a 3 year measure but is going on now for about 6 years despite the tourist industry going gangbusters for the last 3 years.
and conditions for hotel worked is the worst in the State.
 

Watcher2

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The fact that a Cowan was elected is a real head scratcher. Some voters really are fvcking stupid.
 

Franzoni

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Problem is that these temporary tax measures become very permanent. Hotel and West of the Shannon residential incentives survived throughout the boom despite it being blatantly obvious they were no longer needed for years. And the more recent VAT reduction for the 13.5% rate to 9% was only supposed to be a 3 year measure but is going on now for about 6 years despite the tourist industry going gangbusters for the last 3 years.
Don't be ridiculous....the tax put on people from the threat of invasion by the French years ago is long repealed as was USC and the levy for insurance companies going bang...
 

Toland

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We need more construction, both of homes and commercial sites. This is a potential way to encourage that. What legal, practical alternatives do you have to boost both of those?
Local government could be encouraged to build social housing where it's needed, for example. As for commercial sites, there are multiple ways of make it easier and cheaper to build on them.
 

SPN

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We need more construction, both of homes and commercial sites. This is a potential way to encourage that. What legal, practical alternatives do you have to boost both of those?
The price of a house is the amount the highest bidder is prepared to pay.

Giving the developers more profit at the expense of public services is not a credible solution to the problem of a lack of housing supply.

A stick is what is needed here, not a carrot.

The Planning Laws already provide that a Local Authority may CPO zoned land if a developer does not apply for planning permission, and begin building, withing a defined period.

If the choice is between building houses at a moderate profit, or having the land CPO'd by the Local Authority, the greedy basturds won't be long about delivering what our society urgently needs.
 

gijoe

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Don't be ridiculous....the tax put on people from the threat of invasion by the French years ago is long repealed as was USC and the levy for insurance companies going bang...
Did'nt they get rid of that temporary tax as well, what was its name...........oh Income Tax!
 

gijoe

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The price of a house is the amount the highest bidder is prepared to pay.
Precisely. Prices won't fall as a result. The tax foregone just goes into developer profits.
 

Franzoni

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The price of a house is the amount the highest bidder is prepared to pay.

Giving the developers more profit at the expense of public services is not a credible solution to the problem of a lack of housing supply.

A stick is what is needed here, not a carrot.

The Planning Laws already provide that a Local Authority may CPO zoned land if a developer does not apply for planning permission, and begin building, withing a defined period.

If the choice is between building houses at a moderate profit, or having the land CPO'd by the Local Authority, the greedy basturds won't be long about delivering what our society urgently needs.
CPO's are only for little people in inner city area's and the odd farmer who they think can't afford a legal team....
 

Plebian

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The price of a house is the amount the highest bidder is prepared to pay.

Giving the developers more profit at the expense of public services is not a credible solution to the problem of a lack of housing supply.

A stick is what is needed here, not a carrot.

The Planning Laws already provide that a Local Authority may CPO zoned land if a developer does not apply for planning permission, and begin building, withing a defined period.


If the choice is between building houses at a moderate profit, or having the land CPO'd by the Local Authority, the greedy basturds won't be long about delivering what our society urgently needs.

Heresy! There are too many FF and FG supporters in the electorate for that kind of sensible suggestion to be enacted by an Irish Govt.

Shur, they shut out the big German bank with the cheap mortgages so that AIB and BOI would be protected.

In an interview with the Sunday Independent, a project manager for Germany’s biggest bank, Sparkasse, claims the Department of Finance is slowing its ability to enter the Irish market. Harald Felzen claims this is due to the department’s interest in protecting the Exchequer’s shareholdings in AIB and Bank of Ireland
https://www.google.ie/url?sa=t&source=web&rct=j&url=https://www.irishtimes.com/business/financial-services/german-bank-claims-government-is-slowing-its-entry-to-mortgage-market-1.3199979?mode=amp&ved=0ahUKEwiu2q7k6YjWAhWIIsAKHe5aAycQFggiMAA&usg=AFQjCNH6KLV-gZYgUVlSQHhIjeHyXJ5izg&ampcf=1

https://www.google.ie/url?sa=t&source=web&rct=j&url=https://amp.independent.ie/business/personal-finance/property-mortgages/major-german-lender-targets-ireland-with-new-mortgage-model-36072198.html&ved=0ahUKEwiu2q7k6YjWAhWIIsAKHe5aAycQFgglMAE&usg=AFQjCNHD-zn-ppAmiEv1y6XmKjBLFqjvKA&ampcf=1

Didn't you know that building houses is always about funneling money into the Irish Banks?
 

Northsideman

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Local government could be encouraged to build social housing where it's needed, for example. As for commercial sites, there are multiple ways of make it easier and cheaper to build on them.
Yes but why didn't this happen under Labour in government? They presided over the building of feck all in their recent terms.

The big problem is the social housing stock was sold off by government after government. Many of the folk who cry loudest about developers benefitted from these sell offs.
 

wombat

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The big problem is the social housing stock was sold off by government after government. Many of the folk who cry loudest about developers benefitted from these sell offs.
It was a very popular policy among those living in council houses who voted accordingly. Cowen is daft, handing Varadkar an excuse to call an election on tax breaks for developers.
 

devoutcapitalist

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In the UK vat is 0% for new builds compared to 13.5% in Ireland. The high VAT rate is one of many reasons who house building is unprofitable in so many parts of Ireland.
 

HereWeGoAgain

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In the UK vat is 0% for new builds compared to 13.5% in Ireland. The high VAT rate is one of many reasons who house building is unprofitable in so many parts of Ireland.
2016 Report via Times:
Construction costs account for less than half of the overall price of building a three-bedroom semi-detached house in Dublin, according to a new survey.

The Society of Chartered Surveyors Ireland published a report on Wednesday that found the overall cost of build a three-bedroom semi-detached residential home in county Dublin was more than €330,000.
The society of surveyors suggests several measures such as reducing VAT and bringing down development levies on new builds to stimulate further development in Dublin.

The figures from “The real cost of new house delivery 2016” report showed that of the €330,000 total, land and acquisition accounted for €57,500, which is 17 per cent of the overall cost, VAT was €39,000 (12 per cent) and the margin was €38,000 (11 per cent).
The labour and construction costs of building the house were €150,000, or 45 per cent of the total.
https://www.irishtimes.com/business/construction/labour-and-materials-45-of-new-house-cost-survey-finds-1.2651912
 

Plebian

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In the UK vat is 0% for new builds compared to 13.5% in Ireland. The high VAT rate is one of many reasons who house building is unprofitable in so many parts of Ireland.
House prices across England and Wales soar by 4.8% to hit a new record high of £303,200

12th June 2017
That must be why the UK is flooded with cheap houses, not.

https://www.google.ie/amp/s/www.thesun.co.uk/money/3781723/house-prices-across-england-and-wales-soar-by-4-8-to-hit-a-new-record-high-of-303200/amp/
 

Windowshopper

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As much as I hate to say it they might be right. The problem before was we should of being using taxation policy to depress demand for construction now we have the opposite problem.

One of the problems with ideology in general is that it usually aims for a fixed destination point. Politics is rarely about finding the perfect policy that works forever more to use a much abused buzzword it should be 'dynamic'. The only reservation I'd have which was voiced by gijoe is temporary tax cuts are rarely tempoary and when the time comes when the best policy is to bring taxes back up it might not be done.
 
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