Danny Healy-Rae (Kerry, Independent)
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I am glad to get the time to raise this important issue with the Minister of State. This residential zoned land tax is having an adverse effect on farmers, especially dairy farmers, close to our towns in County Kerry, and I am sure it is happening all around the country. It is happening in places such as Killarney, Tralee, Listowel and Castleisland.

Many of these farmers have not slept since they got notification at the beginning of April that they were liable for this zoned land tax. Some of these farms are classified as strategic reserve, which means that existing residential, infill residential and proposed residential. All those categories should be dealt with first. Under strategic reserve you are not even entitled to get planning permission. You would have to do a material contravention and the council would have to agree to it before planning could be granted.

There is plenty of other land. For example, in Killarney alone, Kerry County Council owns land in Deer Park and public land is owned by the HSE in St. Finan's Hospital, which it got from Kerry County Council in the first place. It should go back to Kerry County Council to build social housing on. We have been advocating for that for years.

This residential zoned land tax was designed and brought in to deal with speculators and would-be developers in Dublin, Cork, Limerick and other cities, but sadly there are plenty of other places to build in or around Killarney without doing this terrible deed to people and making them pay this tax. Some of them have been told it could be up to €100,000 a year. Even if their places were worth €1 million, they will not own them after a few short years. They will be totally wiped out with this tax. It reminds me of a song that goes:

The rent and taxes were so high I could not them redeem

And that's the cruel reason why I left old Skibbereen.

Is the Government going to do that to these people who have given their lives to building up enterprises? Some of these have been farming for three generations. They supplied Killarney dairy before Kerry Co-op existed. There places have been built up to be environmentally friendly. They are producing the best milk and beef that could be expected in any part of the world. Will these active farmers be wiped out? I ask the Minister of State to go back to the Departments of Finance and Housing, Local Government and Heritage where this is coming from. It is wrong.

12 o’clock

There are several things the Government should do if there is a shortage of houses, but it should not force anything on farmers who are actively farming. A distinction or exemption has to be made for these active farmers.

I am glad to get the opportunity to raise this very serious matter. Some of these farmers have not slept. They have had tough times trying to survive in recent years, with Brexit and every other kind of problem that has hit them nationally. I appeal to the Minister of State.

Patrick O'Donovan (Limerick County, Fine Gael)
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I am taking this matter on behalf of the Minister for Housing, Local Heritage and Government, Deputy Darragh O'Brien. I thank the Deputy for the question of the application of the residential zoned land tax, RZLT, to farmlands. The Finance Act 2021 inserted Part 22A, on RZLT, into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by landowners, including farmers, of land that is zoned for residential or mixed use, including residential purposes, and is serviced. It is important to note that to come within the scope of RZLT, farmland must be both zoned and fit for residential use and be serviced or have access to services. Farmland that is zoned for residential use but is not currently serviced is not within the scope of the tax and will only come within the scope of the tax should the land become serviced at some point in the future.

Within the Irish planning system, the county or city development plan is the principal planning strategy document for the development of a local authority area over the six-year statutory period. The development plan gives spatial expression to the physical, economic, social and environmental needs of the community in order to support and regulate new development, enhance amenities and protect the environment. Residential zonings contained within the development plan, which provide the basis for the application of the tax measure, form part of the adoption of the plan by the elected members, having regard to the need to accommodate sufficient land for housing development over the lifetime of the plan.

Land will be considered to be serviced for the purposes of the tax where it is reasonable to consider that the land has access to, or may be connected to, public infrastructure and facilities, including roads and footpaths, public lighting, foul sewer drainage, surface water drainage and public water supply necessary for dwellings to be developed on the land, and sufficient service capacity available for each development. Agricultural land that is zoned solely or primarily for residential use and is serviced meets the criteria set out within the legislation and, therefore, falls within the scope of the tax. Agricultural land that is zoned for a mixture of uses, including residential, is not in scope because farming is a trade or profession that benefits from an exemption in the legislation. These zonings are considered to reflect the housing need set out within the core strategy for the relevant local authority area. Landowners within such zonings may fall within the scope of the tax in the interests of ensuring an appropriate supply of housing on zoned lands.

Draft RZLT maps were published by each local authority on 1 November last. The purpose of draft maps was to allow landowners, including farmers, to see if their land is within the scope of the tax. If landowners see that their land is included on the draft maps and believe that it should not be, they had the opportunity to make a submission to their local authorities by 1 January seeking to have the maps updated and their land removed from them. Local authorities will have now considered the submissions received and made determinations on whether particular lands should stay on the maps or be removed. If a landowner disagrees with the determination of a council, he or she can appeal to An Bord Pleanála. If a landowner requested a rezoning of his or her land, the local authority would consider the request and, if appropriate, it would commence a variation procedure to alter the zoning of the land, as the Deputy said. The variation procedure, and the local authority’s decision on whether or not to commence one, is part of normal zoning processes.

It is acknowledged that the tax will impact on landowners. However, if the land in question is zoned for a particular purpose under a plan adopted by the local authority, and has been subject to investment by the local authority and the State in the services necessary to enable development for housing to accommodate increased population, it is intended that the land should be used for housing. This tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply.

Danny Healy-Rae (Kerry, Independent)
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I thank the Minister of State for his reply. I have read all that he read out. Farmers have been notified by the local authorities that they are liable for the tax, even for land that is zoned as strategic residential in reserve. That is wrong. These are active farmers. It is recognised there is no demand for this development land around Killarney. There is no demand as such. In 20 years' time, if farmers have to wait that long, their land might still not be sold because we are waiting for a bypass. For some of these farmers, their only access is onto the national primary road, which is the N22 going to Killarney. We know the kind of traffic jams that are on that road. If there was to be a housing estate there, people could not get onto the road any evening because we do not even have the bypass.

I say to the Minister of State these people are contemplating going to An Bord Pleanála. They have to go but it is an expensive process. I ask the Minister of State to ensure they are not put through this. Active farmers who have been farming their lands for many years should not be put through this. They should be exempt. A distinction should be made between the big hoarders of land in Dublin, where the housing problem is.

We have an outland that is owned by the county council in Killarney at present to cater for the housing list, including land at St. Finian's and other lands the council has. There are other smaller pockets of land in the town of Killarney that could be built on. When all those places are built, in 20 years' time, the council can then come to these fellas by agreement, but it should not try to force them off their lands with this tax because that is what it and the Government are trying to do.

I am sorry the Minister is not here to listen to me make the case. He is wrong in going down this road. He is hurting people. I was brought up to understand that you should never try to put one person or one community up by putting others down. That is very wrong. I ask the Minister of State to ensure that active farmers are exempted from this vacant land tax.

Patrick O'Donovan (Limerick County, Fine Gael)
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I thank the Deputy. I know about the issues he raised and I see he feels very strongly about them. The matter has been raised previously in the House, and the Tánaiste has responded directly specifically regarding, as the Deputy said, the tiers for different zoning matrices within towns. I will ask the Minister to contact him directly to discuss the specifics he raised as I am not familiar with them and am not in that Department. I will ask the Minister to come back directly to the Deputy.

Danny Healy-Rae (Kerry, Independent)
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I thank the Minister of State.