Oireachtas Joint and Select Committees

Thursday, 20 September 2018

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Home Building Finance Ireland Bill 2018: Committee Stage

10:20 am

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail) | Oireachtas source

I recognise the methodology behind this proposal in light of the continued review of the property tax in general and the various recommendations that will emanate from the public consultation process but there are elements of it which need to be tweaked to protect the safeguards that were in place for those on lower income, for those who had mortgage interest relief, where that mortgage interest relief, or the lack of it, may allow them to fall into the threshold to defer payment. We support the Government recommendations for, and await with interest, the consultation process on the property tax. Having talked to councillors who were faced with a Hobson's choice of altering the property tax in their area by the 15% variation that they have in order to bolster their own finances, one comment they made to me in recent weeks and months is that they are conscious of concessions that were in place previously that may be extended into the future. For example, if we eventually meet the targets set by Government for new house building perhaps property tax in an area could bolster the income of local authorities rather than them receiving the envisaged "Dear John" letter from the Departments of Finance, Public Expenditure and Reform and Environment, Community and Local Government.

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