Developer O’Flynn said he does not want tax breaks to build homes
Property developer Michael O’Flynn said he does not want tax breaks and instead just wanted “a viable business.”
The Cork businessman was reacting to news of a possible reintroduction of broad tax reliefs for developers to stimulate housebuilding. The issue is being considered at senior levels. However, Minister for Finance Paschal Donohoe has ruled out such tax breaks as they previously “did such harm to our economy”.
Speaking at an event organised by Property Industry Ireland on Tuesday, Mr O’Flynn said he was also opposed to tax breaks for developers.
“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, we can make a profit.”
Mr O’Flynn said there was not enough zoned land that is “serviced or serviceable” and the current planning system “isn’t functioning properly”.
He said the country had moved towards large-scale residential developments but they are taking an awfully long time to get through the local authority system “We need emergency measures across all the areas if we are going to try and catch up,” he said.
He also criticised Government inaction on the recommendations contained in the Housing Commission report last year, saying: “We are failing a generation of young people”.
Mr O’Flynn was joined by chief economist at Goodbody Dermot O’Leary and chief executive of the Royal Institute of the Architects of Ireland Kathryn Meghen — both of whom were members of the commission.
The commission published its report and recommendations in May last year. Mr O’Flynn said 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”.
He added it was “most unfortunate” the report did not get the hearing it deserved but did acknowledge that following his appointment as Housing Minister, James Browne did move quickly to meet with the Housing Commission to discuss the report.
Mr O’Flynn also added he 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”.
In conjunction with the event, Property Industry Ireland published a white paper on housing policy priorities for the Government. It said the business group had significant concerns about the adverse effects of the proposed zoned/land value sharing legislation set out in the programme for government.
PII director David Howard said its members were “deeply concerned” about the proposed legislation, saying it was “already negatively impacting transactional activity in the development land market”.
He added it was “hindering housebuilders’ ability to acquire early-stage development sites” and called for a pause in further legislative progress on this issue.
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