Concrete levy ‘lacks clarity’ - Mannok

Days before the new Defective Concrete Products Levy (DCPL) comes into effect (September 1), one of the country’s largest producers of cement and precast products is calling for a “deferral” of its introduction citing a “lack of clarity, with details still only emerging”.

The new levy, announced in last year’s budget, is to be charged at a rate of 5% of the open market value of concrete products such as bridge beams, cattle slats, roof tiles, paving, ornamental concrete and even garden furniture.

Its purpose is to help mitigate the cost faced by the State in meeting commitments under Defective Concrete Block Scheme, also known as the Mica Redress Scheme.

Mannok says it appreciates the Government’s “dilemma” in having to fund costs for legacy building defects, but also asks that the State recognise how “current inflationary pressures alongside the urgent need for housing” make the timing “difficult for many”.

A spokesperson for the local firm told the Celt this week: “While Mannok is working on its processes to apply the concrete levy on applicable products, in light of the very short timeframe and the continuing lack of clarity, with details still only emerging, we are calling for a deferral of the September 1st deadline.”

The company spokesperson added: “Mannok continues to seek ways to bring innovation to the sector, while also reducing costs, and does not currently envisage any impact on local operations or employment arising from the levy.”

Fianna Fáil’s Senator Robbie Gallagher shares the concerns of the industry. He says there is a worry that the levy will include precast concrete products, which was never the intention. If it is the case he believes it could “damage the competitiveness” of Irish precast exports.

“The Department and Revenue are confirming that the legislation applies to the ‘concrete ingredients’ of precast concrete,” he said.

“As there is no levy on the precast product itself (as opposed to its concrete ingredients), there is no provision in the legislation to apply the levy to imported precast concrete products from Northern Ireland (as there is for imported readymix concrete imports). This obviously confers a competitive advantage to Northern Irish precast manufacturers,” said Senator Gallagher.

Precast concrete suppliers have fixed priced contracts up until the middle of 2025 and Sen Gallagher says they’ll “have no scope to recoup the levy”.

“The implementation of the levy needs to be delayed to change the legislation so that it can be implemented the way the government intends.”