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

I thank the Deputy. If I look at the current operation of the LPT, it has raised approximately €3 billion since it was implemented. It raises approximately €500 million per year. The raising of that €500 million per year has allowed that money to go to local authorities and, in turn, freed up space on behalf of the Exchequer to spend money elsewhere. It has broadened our tax base. It has allowed more funding to be made available for public services. I strongly believe a local property tax is part of what we need to have to have a stable tax base. We have many issues with the local property tax, including homes that have been built since a certain point now that do not pay it. We have issues in respect of the valuation of the local property tax that will also have to be considered at another point.

I strongly believe that the retention of a local property tax is an important part of having a stable tax base. I would differ from the Deputy when he said that because house prices have gone up, which is clearly the case since the time the LPT was implemented, it is a failure of the LPT. Other forces have driven increases in house prices. I welcome the fact that we have seen signs of moderation in the price of houses in recent months but I believe the use of this tax in the future is an important part of how we will have a stable and fair way of collecting tax from people.

I do not believe that the model that the Deputy is proposing would either raise the same amount, nor do I believe it would be fairer in the long run.