Steven Matthews (Wicklow, Green Party) | Oireachtas source

Amendment No. 73 is about the retention of records and the fine that would accrue to somebody who failed to comply with the rules on the retention of records with regard to declaring that a house is not vacant because it has been occupied for more than 30 days. I think that is what is set out in the legislation. This amendment is similar in nature to the one that Deputy Boyd Barrett spoke on earlier about the overall rate of the tax. I tabled an amendment which was ruled out of order because it would place a charge on the State. I take the Minister's point that we are introducing a new tax and its objective is to activate vacant properties and bring them into use. He suggested that if the rate were too high, it may have implications for people who cannot afford to pay the tax as well as other implications. We are trying to activate them to move on that house. I often hear the argument that a building is derelict or vacant because the person cannot afford to do something with it. On the other hand, there are often people who have no financial challenges whatsoever, and if they are doing nothing with the building, it is an indication they have too much wealth since they are prepared to let it sit there and rot rather than sell it, refurbish it or move it on.

I was glad to hear the Minister say the property tax will be reviewed. We can look at the rate. The model which was introduced in Vancouver many years ago was quite successful. It brought slightly more than a quarter of the vacant properties in Vancouver back into use, which is what we are trying to do here. That was introduced at a rate of about 1.5%. That is on a sliding scale which increases with time. That is regarded internationally as a successful vacant property tax measure. My suggestion was to pitch this at about ten times the local property tax because it equates to approximately 1%, depending on what band the property falls into. Ten times the local property tax would be approximately 1% of the value of the home. That is where we should have gone. I take the Minister's point that he will review it but I would like it to be higher to stimulate bringing more houses back into use.

Amendment No. 73 provides a fine of €3,000 for non-compliance or non-retention of records. I suggested that we increase the fine to €10,000. It has to be punitive. While I understand the vacant homes tax is set at a level which the Minister thinks is fair when trying to achieve its objective, I think withholding or not supplying correct information to Revenue that is required should incur a higher charge than €3,000.