Irish Developer Rejects Tax Breaks, Calls for Viable Business Conditions Amid Housing Crisis
Table of Contents
- Irish Developer Rejects Tax Breaks, Calls for Viable Business Conditions Amid Housing Crisis
- Navigating Ireland’s Housing Crisis: Beyond Tax Breaks to Sustainable Advancement
- How sustainable are Current Housing Development Practices in Ireland?
- What Systemic Barriers Are Hindering Housing Development?
- What Are the Most Critical Government Measures Needed to Address These Issues?
- How Can Transparency in Project Costs Improve the Housing Sector?
- The Role of Proposed Legislation
- Summing Up: Steps Forward for Ireland’s Housing Market
Cork businessman Michael O’flynn has rejected calls for tax breaks for developers, instead advocating for a “viable business” environment to stimulate housing construction in Ireland. His comments come amidst ongoing discussions at senior government levels regarding potential tax relief reintroduction, a move previously deemed detrimental to the economy by Minister for Finance paschal Donohoe, who stated such breaks did such harm to our economy.
Speaking at a Property Industry Ireland event on Tuesday, O’Flynn emphasized his opposition to tax incentives. I don’t want tax breaks, adn I want to make that clear, I just want a business that’s viable, that we can go to a bank, we can fund it, we can make a profit,
he stated. his concerns extend beyond taxation, however. He highlighted meaningful obstacles within the current system, citing insufficient “serviced or serviceable” zoned land and a dysfunctional planning process.
O’Flynn pointed to the shift towards large-scale residential developments, noting the extensive delays encountered within the local authority system. We need emergency measures across all the areas if we are going to try and catch up,
he stressed, underscoring the urgency of the situation. He further criticized the government’s inaction on the recommendations from last year’s Housing Commission report, declaring, We are failing a generation of young people.
O’Flynn’s concerns were echoed by other Housing Commission members present at the event, including Goodbody’s chief economist Dermot O’Leary and Kathryn Meghen, chief executive of the Royal Institute of the architects of Ireland. The commission, which published its report and recommendations last May, has seen its findings largely ignored.O’Flynn expressed his disappointment, stating the report needed to be embraced
or challenged
by the Government, but what it didn’t need was to be put on a shelf somewhere or sent back somewhere.
While acknowledging Housing Minister James Browne’s swift meeting with the commission following his appointment, O’Flynn deemed the report’s lack of attention most unfortunate.
Openness in project costs was another key point raised by O’Flynn, who suggested greater openness to take the mystery away from housing supply.
This sentiment aligns with a white paper released by Property Industry Ireland (PII) alongside the event,which detailed the association’s significant concerns regarding the proposed zoned/land value sharing legislation outlined in the government’s program. PII director David Howard expressed deep concern, stating the legislation is already negatively impacting transactional activity in the development land market
and hindering housebuilders’ ability to acquire early-stage development sites.
He urged a pause in further legislative progress on this issue.
The confluence of concerns expressed by O’Flynn and PII highlights the multifaceted challenges facing ireland’s housing sector. The need for a thorough approach addressing land availability, planning efficiency, and government responsiveness to expert recommendations is paramount in overcoming the current crisis.
In the midst of a pressing housing crisis, Irish developer Michael O’Flynn has sparked a conversation with a bold stance: rather than accepting tax breaks, the focus should be on creating viable business conditions. But what does it take to transform this vision into reality? We explore these questions with Dr. Fiona Harrington, a renowned housing policy expert and professor at Dublin City University.
How sustainable are Current Housing Development Practices in Ireland?
Editor: Amid discussions of reintroducing tax reductions, Michael O’Flynn advocates for more essential business conditions. Is the focus on tax breaks merely a distraction from larger issues in the housing market?
Dr. Fiona Harrington: While tax breaks often seem like an attractive short-term solution, thay don’t tackle the root causes of Ireland’s housing crisis.Michael O’Flynn is right to point out that creating a “viable business” surroundings is more beneficial in the long term. Developers need secure funding,efficient planning,and accessible land to build sustainably. If we continue to overlook these foundational issues, tax incentives will likely remain ineffective and possibly detrimental, as noted by the former finance Minister, Paschal Donohoe.
What Systemic Barriers Are Hindering Housing Development?
Editor: Operational barriers such as insufficient serviced land and a dysfunctional planning process are mentioned frequently. How do these factors specifically impede progress?
dr. Fiona Harrington: The lack of serviced, or serviceable, land is a meaningful hurdle. Developers often struggle to find suitable land that meets planning regulations or is already prepped with necessary infrastructure. This logjam in the availability of land delays projects substantially. Moreover, the current planning processes are notoriously slow and cumbersome. If we look at past strategies in countries like Germany, for example, we find that streamlined procedures and clear zoning laws have proven effective. Ireland needs a blend of policy reform and infrastructural investment to alleviate these barriers.
What Are the Most Critical Government Measures Needed to Address These Issues?
Editor: Given the Housing CommissionS recommendations have largely been ignored thus far, what case can be made for the government to prioritize these suggestions?
Dr. Fiona harrington: The Housing Commission provided a detailed blueprint for reform,which included many critical recommendations. These range from improving planning efficiencies to better integrating economic planning with housing needs. To foster a responsive and supportive environment for developers,the government must embrace and implement these insights rather than sidelining them.Ignoring these recommendations, as Michael O’Flynn emphasizes, risks further disadvantaging younger generations desperate for affordable housing options.
How Can Transparency in Project Costs Improve the Housing Sector?
Editor: Michael O’Flynn supports greater openness regarding project costs to demystify housing supply. How can this transparency be effectuated and what benefits might arise?
Dr. Fiona Harrington: Transparency in project costs would shed light on frequently enough opaque pricing strategies, helping consumers and policymakers understand the true cost of housing. Lessons can be drawn from countries like Canada, where standardized reporting has provided clarity. Greater transparency not only helps manage consumer expectations but also allows for more effective policy-making and investment strategies. By demystifying housing supply, stakeholders can work collaboratively towards solutions.
The Role of Proposed Legislation
Editor: With the Property Industry Ireland (PII) expressing serious concerns over the proposed zoned/land value sharing legislation, how might this impact housing development?
Dr. Fiona Harrington: The critique from PII is crucial here. Legislation can profoundly affect market dynamics by influencing developer profitability and land availability. If the proposed zoned/land value sharing legislation complicates early-stage acquisitions and hinders development activity, as PII argues, it warrants a careful evaluation and potential restructuring. A pause or reevaluation of this legislation would allow all stakeholders to assess its long-term impacts and modify it to better serve the housing sector.
Summing Up: Steps Forward for Ireland’s Housing Market
As we look towards the future of Ireland’s housing market, what steps should stakeholders consider to ensure balance between development and sustainability?
Dr. Fiona Harrington:
- Policy Reform: Implement complete policy changes based on accomplished international examples, focusing on planning and land accessibility.
- Stakeholder Collaboration: Encourage dialog between government, developers, and the public to align goals and create pragmatic solutions.
- Invest in infrastructure: Increase funding for essential infrastructure to support rapid, yet sustainable development.
- Embrace Transparency: Establish protocols for clear and transparent reporting of housing project costs.
- legislative review: Continuously review and adjust legislation to prevent unintended market distortions.
These strategies offer a roadmap for a robust and sustainable housing market that benefits all parties involved.
What are your thoughts on these suggestions? Share your views in the comments below or join the conversation on social media. Together, we can build a future where everyone has access to affordable and sustainable housing in Ireland.