Finance Minister Paschal Donohoe has said he is "absolutely standing behind" a concrete levy to raise funds to cover the Mica redress.

It comes after Housing Minister Darragh O’Brien penned a letter to Mr Donohoe raising concerns from Fianna Fáil party members the 10% concrete levy could put additional pressures on the construction industry.

BusinessPlus.ie understands that the Fianna Fail minister sent the letter last Wednesday after a private meeting of TDs and senators.

In the letter, Mr O’Brien said "these concerns were particularly acute in the context of inflammatory pressures on the building sector and (the) need to boost housing supply."

Despite the unease, Mr Donohoe is still in favour of it.

In Association with

The Society of Chartered Surveyors Ireland (SCSI)have said the 10% concrete levy announced by the government in Budget 2023 will add €3,000 to €4,000 to the delivery cost of the average three-bedroom semi-detached home.

SCSI president Kevin James said the levy would add to the challenge of hitting the target of increasing housing output by 8% every year until 2030 under the Housing for All plan.