Séamus Kirk (Louth, Fianna Fail)
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I thank the Ceann Comhairle for allowing me to raise this matter.

I have received a number of complaints from constituents who own a number of properties which are mortgaged and rented to tenants. Because of their difficult and stressed financial position they find they are not able to make the non-principal private residence charge payments to their local authority.

There is a legal obligation to pay the charge which is covered by regulation. I ask the Minister of State to refer this aspect of the matter to the Department. Where there are exceptional circumstances and an individual or a combination of individuals find themselves in financial trouble, there should be provision to allow the charge to be paid on a phased basis. As the law stands, there is no provision for this; local authorities have no flexibility or leeway. A simple change to the regulations would be of considerable help.

The individual who raised the matter is not trying to find a way of not paying, but he said he could not pay on the due date. If one does not pay on the due date, interest accumulation kicks in. I am sure the legislation did not envisage penalising individuals who found themselves in stressed financial positions and facing them with that additional burden. Will the Department take another look at the charge and modify it to take account of special circumstances, such as I have outlined.

Fergus O'Dowd (Louth, Fine Gael)
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I thank my constituency colleague, Deputy Kirk, for raising this important matter. The Local Government (Charges) Act 2009 broadened the revenue base for local authorities by introducing this charge. The non-principal private residence charge is set at €200 and liability for it falls, in the main, on rental holiday and vacant properties. Proceeds from the charge are paid to the local authorities and used to fund the provision of vital local services.

The 2009 Act is structured from a starting position of there being a universal liability for the charge in respect of all residential property. Liability arises each year on a point-in-time basis, 31 March. A number of exemptions from the charge are included, the most significant being where a property is the owner's sole or main residence. The charge is paid on a self-assessment basis. It is a matter for the owner of a residential property to assess whether there is a liability to pay the charge in the first instance. The Act provides for the application of late payment fees of €20 in respect of each month or part of a month for which the charge remains unpaid after the due date. In addition, both the €200 charge and any accumulated late payment fees remain as a charge against the property concerned.

The Act does not provide for a general waiver scheme. I remind the Deputy that his party was in government when the legislation for this charge was put in place. I understand that the view was taken when the legislation was being drafted that a waiver scheme would not be necessary or appropriate. First, owners of properties other than their sole or main residence would not normally be in a category of persons for which a waiver scheme would be necessary or appropriate. Second, waiver schemes have proved disproportionately difficult and time-consuming to administer.

In exceptional circumstances, where there is genuine hardship demonstrated by an individual, a local authority can consider utilising its powers under section 6 of the Act. This provision places the collection of the charge under the care and management of the relevant local authority concerned. This is a standard provision which is also in the Finance Acts. The care and management provision allows the Revenue Commissioners some flexibility in addressing difficult cases. It is a matter, therefore, for the local authority concerned to examine the particular circumstances of the cases mentioned by Deputy Kirk. They have powers in exceptional circumstances to deal with the issue.

Séamus Kirk (Louth, Fianna Fail)
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I am happy to take the assurance of the Minister of State on this matter. We will have to return to the local authority and point out the provision and see if some arrangement can be reached.