Developer O’Flynn said he does not want tax breaks to build homes
In a recent event organized by Property Industry Ireland, prominent property developer Michael O’Flynn shared his stance on the potential reintroduction of tax breaks for developers. His comments come amidst discussions at senior government levels about stimulating housebuilding through such measures. However, Minister for Finance Paschal Donohoe has firmly ruled out tax breaks, citing their previous negative impact on the economy.
O’Flynn’s Stance on Tax Breaks
During the event, O’Flynn made it clear that he does not favor tax breaks for developers. Instead, he emphasized the need for a viable business model that can attract bank funding and generate profits.
- Business Viability Over Tax Breaks: O’Flynn stressed, “I don’t want tax breaks, and 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, and we can make a profit.”
- Zoning and Planning Challenges: He highlighted that there is insufficient zoned land that is adequately serviced or serviceable, and the current planning system is not functioning effectively.
The Housing Crisis and Policy Recommendations
O’Flynn pointed out that the country has shifted towards large-scale residential developments, but these projects are facing significant delays in the local authority system. He called for emergency measures to accelerate the process and catch up with the housing demand.
- Emergency Measures Needed: “We need emergency measures across all the areas if we are going to try and catch up,” O’Flynn stated.
- Government Inaction Criticized: He criticized the government’s inaction on the recommendations from the Housing Commission report published last year, asserting, “We are failing a generation of young people.”
Expert Perspectives on Housing Policy
O’Flynn was joined by Dermot O’Leary, chief economist at Goodbody, and Kathryn Meghen, chief executive of the Royal Institute of the Architects of Ireland, both of whom were part of the commission. Their insights added depth to the discussion on housing policy.
- Housing Commission Report: O’Flynn emphasized the need for the government to either embrace or challenge the report’s recommendations but cautioned against ignoring it. “What it didn’t need was to be put on a shelf somewhere or sent back somewhere,” he said.
- Government Response: He acknowledged that the newly appointed Housing Minister, James Browne, moved swiftly to meet with the Housing Commission to discuss the report.
Transparency and Cost Disclosure
O’Flynn also expressed openness to more transparency from developers regarding the costs of building homes. He believes this could help demystify housing supply issues.
- Transparency in Costs: “I would be open to more transparency by developers on how much it costs to build homes in order to take the mystery away from housing supply,” O’Flynn stated.
Property Industry Ireland’s White Paper
In conjunction with the event, Property Industry Ireland published a white paper outlining housing policy priorities for the government. The business group expressed significant concerns about the proposed zoned/land value sharing legislation set out in the government’s program.
- Concerns Over Legislation: PII director David Howard noted that members were “deeply concerned” about the proposed legislation, as it was already negatively impacting transactional activity in the development land market.
- Hindering Housebuilders: Howard added that the legislation was hindering housebuilders’ ability to acquire early-stage development sites and called for a pause in further legislative progress on this issue.
Frequently Asked Questions (FAQs)
Q: Why does Michael O’Flynn oppose tax breaks for developers?
A: O’Flynn believes that tax breaks are not necessary and instead advocates for a viable business model that can attract bank funding and generate profits.
Q: What are the main challenges in the current housing market?
A: The main challenges include insufficient zoned land, inefficiencies in the planning system, and significant delays in the local authority system for large-scale residential developments.
Q: How has the government responded to the Housing Commission report?
A: The government has been criticized for its inaction on the recommendations, despite the newly appointed Housing Minister, James Browne, meeting with the Housing Commission to discuss the report.
Q: What are the concerns raised by Property Industry Ireland regarding housing policy?
A: PII has significant concerns about the adverse effects of the proposed zoned/land value sharing legislation, which is already negatively impacting transactional activity in the development land market and hindering housebuilders’ ability to acquire early-stage development sites.
By addressing these key points and providing expert insights, this article aims to offer a comprehensive overview of the current housing market challenges and policy discussions in Ireland.