Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

It is because local authorities are being told people paying the property tax are of the opinion it will provide more street lighting, look after roads, lead to more planting of flowers and shrubbery and the provision of services in the locality. The reality is there is a shortfall in the revenue the country is generating and this will plug the hole which exists as a result of the decrease in property-related taxes such as stamp duty and capital gains tax.

The purpose of the tax is to retain the services which exist at present and long-term wise it is a more sustainable model, so when the property market gets to a level of 12% to 15% of a normal economy we will have additional taxes and we can look at how to redistribute them, such as through a reduction in property taxes or providing additional income for local authorities which can then provide additional services. The message has gone out, probably in an unfair fashion, that this will increase services in local authorities, when more realistically we are only shoring up a gap left as result of the collapse of what was a false economy. The stamp duty figures quoted show a reduction from approximately €3 billion to €1.4 billion. We have huge holes in revenue which we need to shore up.