Oireachtas Joint and Select Committees

Wednesday, 20 September 2017

Committee on Budgetary Oversight

Ex-ante Scrutiny of Budget 2018: Nevin Economic Research Institute, Irish Congress of Trade Unions, Irish Tax Institute and Chambers Ireland

9:00 am

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent) | Oireachtas source

I welcome the delegation and its comments on the site levy. Moving on to where the witnesses have spoken about land tax, what is their thinking in that regard? Do they think that the local property tax is not a just system in the sense that major property across the country is not taxed? On that issue, there is a planned re-evaluation, possibly for 2019, which will lead to major increases for households in urban areas, certainly in parts of Dublin. I note the views of some commentators, including our colleague, Senator McDowell, for example, who sent us a briefing recently. It is probably related to the next election. He is hoping that some of us may be able to vote for him as a Senator. He made the proposal that perhaps there should be some kind of regional valuations system.

To be fair we have been trying to broaden the tax base as much as possible and this committee is very interested in doing so but the property tax is becoming the local government tax, as other people have said. Obviously Mr. Talbot's organisation has a heavy involvement in this area in the context of rates and it members have a huge interest as business people, as well as as householders, in respect of what happens with them. Has Chambers Ireland given any attention to the efficiency of councils? Many people have been taken aback by how lethargic local councils sometimes are in respect of moving on the housing crisis, for example, or moving on other major issues. Councils are very often involved in many kinds of local development issues, but sometimes people think they should stick to the knitting, which is providing the basic essential services for households and businesses.

I wonder whether Mr. Talbot can see trouble ahead with regard to the local property tax, which was not the subject of huge political campaigns when it was introduced. I suppose it went straight to Revenue and the Department of Social Protection. That is one of the major things I want to ask about.

Reference has been made to the 9% rate. A rate of 23% is imposed on a range of businesses. We are fixated on this, to some extent. Many people feel that the Irish Congress of Trade Unions is making a very valid point. The key point that was made earlier by the witnesses from the Nevin Economic Research Institute, whom Mr. Talbot may have heard, was that tax expenditure should be the subject of an absolute timeframe. They referred to sunset clauses etc. Are we going to have this debate about VAT ad infinituminto the future?

I noted what Mr. Talbot had to say about the situation with regard to water. Does he have any ideas about how we might pay for water infrastructure from general taxation?

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