Oireachtas Joint and Select Committees

Wednesday, 7 July 2021

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

General Scheme of the Finance (Local Property Tax) (Amendment) Bill 2021: Discussion

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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That is perfect. As I said, it may be in the system.

I want to raise with the Minister an issue in the legislation. We only have the heads of the Bill at present. The retention of 100% of local property tax by local authorities does away with a large element of the regime. Notwithstanding our position on the local property tax, I want to dig into the details of this legislation. Under this legislation the requirement to put 20% into an equalisation fund, which is then distributed, is gone. We understand the Government is committed to making up the shortfall. Under this Bill the equalisation fund will no longer exist. Will the Minister outline the alternative model to the equalisation fund? The Minister will be very conscious that a number of counties, including my county of Donegal, rely heavily on the equalisation fund. Counties Donegal, Tipperary, Mayo and Waterford make up 40% of the total of €133 million in payments this year. What will be the alternative model? Has the Minister looked at what Dr. Gerald Turley and Dr. Stephen McNena have said? They said the old model was not good international best practice and that what is needed is a new model that would increase the fund from €133 million to €210 million. I ask the Minister to take these points first and I will come back with further questions on the fund.