Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 66:

In page 23, between lines 20 and 21, to insert the following:"14.The Minister shall, within one month of the passing of this Act, prepare and lay before Dáil Éireann a report on options for the abolition of the Local Property Tax.".

Amendment No. 66 supports our position that the local property tax, LPT, should be abolished. We believe it is not an appropriate tax. Many who are in mortgage distress are being forced to pay it, and there are other ways to fill the gap in revenue that would accrue. One of the ways that would go a portion of the way would be to reintroduce the second house tax. Given the Government's position on LPT, I do not expect the Minister to accept the amendment.

Amendment No. 67 calls on the Government, within one month of the passing of the Act, to lay before Dáil Éireann a report on the likely changes to the amount of LPT payable by households based on the most recent house price data and forecast for the net valuation period. In July 2015, the Thornhill report called for a freeze on the valuation date and said any legislative change to defer the valuation date should be accompanied by the legislative changes necessary to reform the system as I have outlined. While we got a freeze, we did not get the reform which Mr. Thornhill suggested. Mr Thornhill was no politician facing an election. Of his 83 page report, the only recommendation implemented was the recommendation to freeze the deferral date that was intended. Even that was taken completely out of context. It was supposed to allow for reform. The report set out over more than 13 pages that LPT needed reform. However, there is no mention in the programme for Government to touch the issue.

The freezing of the LPT was a cynical election move. It cannot be deferred forever, and I want to figure out where the Government intends to go with it. Our position is to abolish LPT. The valuation date was May 2013. According to the Central Statistics Office, CSO, at this point house prices were at 59.6% of the base which was calculated in 2005. It is now almost 30 points above that, which means average house prices are almost 50% higher than they were when they were valued for LPT. When the freeze ends and revaluation kicks in, many people are in for a terrible shock. This is very clear. My position is not for reform but abolition. The tax has become bizarre tax. It is called a local tax, but it is no more local than any other tax. The only local element is that wealthier counties can afford to reduce it with no impact on services while poorer counties cannot afford to reduce it. What is the Government going to do about it? It is a poorly designed tax. If the Government decides it will freeze it forever and the valuation date will always be May 2013, people will not face an increase. If a revaluation takes place in two years' time based on current property prices, which have increased by 50%, people across the board will have to pay a higher LPT. A report is required on the options for the likely changes in the amount of LPT in order that we can be informed of the movement and, if the valuation date were set, for example, next year, what it would mean for individuals and local authorities.