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Finance (Local Property Tax) Bill 2012

4th December 2012 - Alan Farrell TD

I accept this is probably not the best time to be introducing a property tax. That it is based on market value means it will clearly be slightly unfair to people in urban areas, particularly Dublin but also Cork, Galway, Limerick.

It is regrettable that those in cities are subventing those in rural areas again, primarily because house values are lower where demand is lower. I understand that we are in a difficult set of economic circumstances. I understand completely that the figures for this year and the next few years are done. I did not hear what my colleague, Deputy Mitchell, may have said earlier. It was given to me second hand. I will of course support the Government on this initiative. I hope we can actively review it in the future, having analysed the figures to see precisely where the income is coming from, and try to allocate it more appropriately or more fairly.

I do not wish to attack Sinn Féin’s position on the property tax. Some of its Deputies spoke earlier about being hamstrung by Westminster and all the rest of it. The fact remains that the average property tax payment north of the Border is approximately €1,000, whereas the average payment south of the Border will be approximately €400. Yet again Sinn Féin is taking a different approach to politics south of the Border, compared to north of the Border. I often find that quite ironic.
 
Fianna Fáil now claims it is the wrong time to introduce a property tax even though it committed the State to its introduction and the raising of €530 million before the end of next year. No doubt this is a duality of position for party political and personal gain on the part of the individual Members who continue to spout that line.
 
I regret that so little time is being allocated to this debate.
 
I do not understand why we are rushing through this debate to get the Bill passed before Christmas. The reckoning date is May and it is not being introduced until July. I find it very odd that we are rushing through another Bill.
 
The charitable housing bodies have made a cogent argument. I am sure all Deputies have received and read the e-mails. I am not sure why we are taking money from local government to give to local government, which seems pointless.
 
The income limits for exemptions, at €15,000 for an individual and €25,000 for a couple, are clearly too low. What about the couple living next door to me who have a €300,000 mortgage and a household income of €31,000? I have seen the payslips; they pay €1,700 a month for their mortgage and are in arrears. What about the countless other families? We are simply adding a debt burden to those individuals. The income limits should be reviewed.
 
I welcome the Minister’s proposed exemption for those in pyrite-affected estates. He alluded to this earlier when he said it would be referred to in the finance Bill. I welcome that because approximately 12,500 people living in estates such as mine in north County Dublin and dozens of others across the State are affected. These estates will be examined and the detail, of course, will be most important.
During the debate some people have mentioned that those in negative equity are somehow being unfairly treated in the introduction of a property tax. Negative equity is irrelevant in terms of the ability of a person to pay. For those not selling their houses, negative equity is not an issue. They pay their mortgage and other bills as they normally would. The only time it will affect people is when they go to sell. Obviously there are many choices to be made by people such as me, and doubtless countless others in this House and across the State, who are negative equity.
 
I again register my annoyance at the completely insufficient time allocated to debate the Bill.

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