Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I take the Deputy's point. We need to look at how to strengthen the link between the local property tax somebody pays and the local services he or she receives. That is a fair point. To make the Deputy aware I will refer to how the LPT is currently allocated. Of the approximately €500 million raised each year, approximately €400 million is recycled back to local authorities to provide services. Some €100 million is retained centrally. I would like to find a way to ensure that more of the tax raised within a particular area stays within that area. The flip side of that is the need to ensure other local authorities do not lose out as a result. We have to ensure that a local authority that currently receives funds from elsewhere is not penalised as a result of that policy decision. In parallel with bringing in the legislation we must make progress in dealing with that.

The Deputy made a point about the contrast between a property in Mayo and a property in a very affluent part of Dublin. As the Deputy knows, it is likely though not certain that the owner of the property in Mayo will pay less LPT because of the lower property value. This debate cuts into the heart of issues I will have to deal with when I present the legislation to the House. Because property prices have grown at different levels in different parts of the country, any reform will have distributional consequences. Some people will benefit and others will not. My overall point is that made by Deputies Chambers and Breathnach. As part of changing this I would like to build the link between what property owners pay and what is retained and spent in their areas. We can do that. We will have to do it for some local authorities in order to ensure a successful revaluation.