Oireachtas Joint and Select Committees

Wednesday, 9 May 2018

Joint Oireachtas Committee on Housing, Planning and Local Government

Review of Local Property Tax: Discussion

9:30 am

Photo of Maria BaileyMaria Bailey (Dún Laoghaire, Fine Gael) | Oireachtas source

We are talking about where the local property tax fund goes. Senator Victor Boyhan and I worked on many budgets together. The discretionary figure in Dún Laoghaire is approximately €2.5 million and one is then talking about reducing commercial rates. When one receives the final figures, it is too late in the process and there are all of these complications. There are many very experienced councillors, including the delegates. While I know my area and a few others well, we cannot lose sight of the fact that approximately €21 million of the money goes into housing grants. There is transparency on where the local property tax fund goes in certain areas. We have some fantastic parks and public amenities in Dún Laoghaire which I do not think anybody can doubt. While I know that Deputy Eoin Ó Broin did not mean it, remarks about scrapping the local property tax are not helpful. It is a little like scrapping the water tax. Look at where we are now. One still has to pay for a service, it is a matter of how one pays for it. On the local property tax, Deputy Pat Casey is dead right; it is about the baseline which needs to be looked at again. We talk about projects that have been finished since 2013. They have to pay their way. We have to re-evaluate the process.

Whether we call it a local property tax, a council tax or whatever else, in general, people do not mind paying for a service when they see it. We have a job to do to remind them of where the money goes. As the economy is recovering, there is a ripe opportunity to restructure the local property tax, but I do not believe there is an appetite in any party, although I can only speak for my own, to increase it or the burden on any family. As was said, there are many asset-rich homes, on which very little income is coming in. We need to be very cognisant of this when we look at any re-evaluation of the system. Senator Victor Boyhan is dead right that the principle of paying for services and seeing what one is paying for is a good one. If we scrap anything, with what will we replace it? One has to pay for services in some shape or form. At least, there is transparency when it comes to the local property tax. People can log on to any local authority website and see exactly where the local property tax fund goes. Whether one agrees or disagrees with it, there is a transparent process.

There is a figure of €21 million in Dún Laoghaire. I want it to be focused on the provision of capital funding for affordable housing, for which we are pressing, and the rent to buy scheme, for which we are also pressing and which I hope other local authorities will look, to give first-time buyers living in rental accommodation an opportunity to purchase and offset what they have paid in rent against the cost of purchasing that affordable home from the local authority. That is what I want to see the local property tax fund really targeting - those who need it the most, as well as people who use services.

I do not really have questions as such. Are there one or two ways by which the delegates would change the system to make it better? What comments do they have to make on scrapping the charge? Do they believe that would be reckless?

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