Michael McGrath (Cork South Central, Fianna Fail)
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I will ask the Minister to clarify something for me in respect of scenario 2. This is where the LPT yield for each local authority is to be kept more or less the same. An analysis is then done on home valuations in the area. The rate for that local authority can be adjusted based on those revised valuations to ensure that the yield for the local authority remains pretty much consistent with what it was. According to the interdepartmental report, some 80% of properties in that scenario will see an increase from just above zero to over €200. I am struggling to understand how that is the case given that in each local authority area, there will be new properties coming into the mix where the exemption will have lapsed. That will mean extra revenue. The local authority is having a target of collecting the same amount as it did under the old regime. How can it be that some 80% of properties in that local authority area will be facing an increase? Is it to do with the treatment of the local adjustment factor?