Dáil: Government made €100k tax on each Priory Hall apartment

by Bregs Blog admin team


Dáil: Government made €100k tax on each Priory Hall apartment- Building Control Regulation debate

In the following Building Control Regulation Dáil exchange from June 2012 the influence of developers and issues in building control are discussed. Link to Private Members’ Business- 6 Jun 2012: Dáil debates (KildareStreet.com) here.

Given the recent comments from vested interests in the construction industry regarding reducing costs we note an interesting contribution by Peter Mathews TD who suggested €100,000 of the purchase price of a typical prory hall apartment went to the state in the form of taxation. Is the taxpayer getting value for money under SI.9? Continued self-certification and little or no additional consumer protections, at a vast cost to the consumer and economy.

Extract as follows (highlight by bregs blog):


Peter Mathews (Dublin South, Fine Gael)

I thank the Minister of State for sharing time. It is helpful to step back from the legislative structuring and debate and merely think of the facts again. These are persons who have been literally diddled. Anybody who buys a car, a television or something as simple as a jumper that is not fit for purpose is legally entitled to a refund, and yet the residents of Priory Hall who spent €250,000 on their homes are being dumped with the bill because of a cowboy developer. It is as simple as that.

The Irish Home Builders Association calculations suggest that €100,000 of the purchase price of each Priory Hall apartment went straight to the Government in taxation. After paying such a staggering bill, the least the owners of Priory Hall apartments should be entitled to expect is that the State or the local authority would ensure these are safe to live in as the first port of call, and then the State or the local authority can go after the professions, the builders, the suppliers or whoever. However, those who have had to empty their apartments of furniture and family need to be restituted immediately. It is as simple as that. Anybody who spends €250,000 on a home should feel assured that it is fit for purpose.

In October last, the owners of 187 apartments were forced to empty their homes and move out. Eight months later their plight is not over and their future remains unclear. The developer, the banks and the local authority added insult to injury during this period, and the suggestion the local authority would pay owners €50,000 for apartments that cost €250,000 was a bizarre insult.

The local authority then attempted to wash its hands of the problem in the Supreme Court. This was not right. The banks are less than enthusiastic at finding a resolution. They are now attempting to deal with each apartment owner individually in a divide and conquer strategy.

As I stated, a first port of call is to deal with the problem and then start sorting the bill. I agree with the Minister there are professional responsibilities, building and contracting companies and local authority responsibilities, but these people are entitled to be able to get back into a home. That is to solve the problem and let us – the Government or the local authority – chase the responsible persons in due course, which will take two or three years, for the restitution of the cost of dealing with the problem immediately. That is my suggestion. The Motor Insurers’ Bureau of Ireland deals with motor accidents for uninsured drivers on that sort of basis.

Other posts of interest:

SI.9 costs for a typical house

SI.9 to Cost €168m in 2014 | Non-Residential Sector

SI.9 to Cost €532m in 2014 | Residential Sector 

SI.9 costs for a typical house

The extraordinary cost of BC(A)R SI.9 of 2014

The cost of a Solution to BC(A)R SI.9?