'Measures announced by the Minister for Finance, Paschal Donohoe, TD, to address supply in terms of the property shortage, including allocating substantial resources to the problem, are welcome. However, ACCA cautions that the building sector is at near full capacity and these measures could be inflationary.
'Crucially, the measures to be implemented by the government are unlikely to impact the cost to build, and any land other than historic stock of land remains uneconomic to develop. However, the measures to encourage the release of “hoarded land” are to be welcomed.
'The Minister has made it clear that it is a priority to get people into homes, however, the inflationary effects of the measures being proposed could wipe out any benefits, as the new homes may become increasingly unaffordable.
'Experience tells us that any intervention in the building sector is fraught with risk. In terms of skilled workers, the construction industry is almost at full capacity and any increase in activity within the sector may increase the cost of building.
'This is all being funded by tripling stamp duty for commercial property, which will increase the cost of such property, repositioning Ireland as one of the highest jurisdictions in Europe in terms of commercial stamp duty, and will ultimately reduce the attractiveness of Ireland for Brexit related FDI.'
For further information, please contact:
Aoife Kelly | AIKEN
M: 0874101818 | E: Aoife@aikenpr.com
Notes to Editors
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
ACCA supports its 198,000 members and 486,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 101 offices and centres and more than 7,291 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.
Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers.