Seanad debates

Thursday, 8 December 2011

Local Government (Household Charge) Bill 2011 - Committee Stage (Resumed)

 

6:00 pm

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)

The reason for our opposition to section 4 of the Bill is the question of exemptions. The Minister has stated he is willing to take into consideration individuals in receipt of mortgage interest supplement and this is to be welcomed as there are 18,000 people in receipt of mortgage interest supplement payments. However, this gesture is not sufficient. Already, 70,000 people are in mortgage arrears and they should be included in the exemption as the mortgage interest supplement does not take into account most of those people who find themselves in very difficult and significant financial difficulties.

I hope when our amendment is dealt with on Report Stage there may be some good news from the Minister when he has studied some of the proposals which we believe are valid.

The Department of Finance is budgeting for the household charge to produce a revenue of €160 million in 2012. However, the internal documentation supplied by the Department of the Environment, Community and Local Government to the Department of Finance prior to the budget calculated that the net income to the State will only yield a net income next year of €100 million.

Why is there a discrepancy? The reason is that the Department has calculated its €100 million figure on the basis that many people will not be able to pay the charge, whereas inability to pay has not been taken into account in the budgetary figures presented by the Minister for Finance. A difference of €60 million has emerged between the calculation provided by the Department of the Environment, Community and Local Government, which is sponsoring the legislation, and the Department of Finance, which presented the figures in the budget. I am not sure where the anomaly arises but I ask the Minister to cast some light on the matter.

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