John Gormley (Dublin South East, Green Party)

-----assured me this is a good way to raise revenue.

The Bill is important because it gives effect to a new locally based income source for local authorities, the first in many decades. While the amount of income is modest in the context of local authority overall revenue expenditures, it will nevertheless broaden authorities' revenue sources and reduce their dependence on finance from central government. Over the years, there have been many calls for a new locally based source of local government funding to be introduced and I believe the introduction of the new charge through this Bill is positive. It has been broadly welcomed by the Opposition.

It has been stated that the ideal taxation measure is equitable, simple and flexible. The Local Government (Charges) Bill scores well under the criteria of simplicity and flexibility. It is simple and cost effective to administer and understanding and complying with it will be simple. It will generate revenue on a continuing basis and will not be subject to the volatility we have come to associate with transaction-based property taxes. In this sense, it has the flexibility to cope with varying economic conditions while maintaining a stable yield. It must be acknowledged that the Bill does not include a valuation-based component, something that would make the system more complex and difficult to administer and comply with, as mentioned by a previous speaker. As against this, the amount of the charge is relatively modest at €200 and should not cause those liable to pay it any great difficulty. For these reasons, I hope Deputies from all sides of the House can support the passage of the Bill.

I will refer to some of the points raised. As they primarily relate to issues that will arise on Committee Stage, I am reluctant to address them on this Stage. However, my amendment will put beyond doubt the availability of an exemption from the charge for granny flats and persons vacating their homes due to incapacitation arising from mental or physical ill health. People in those circumstances are different from the general run of owners of non-principal private residences.

I wish to comment on the points made by Deputy McGuinness. He has since left the Chamber, but I share his interest in local government reform. For too long, that area has been stagnating. If we are to examine seriously the issue of the dual mandate, which the Deputy raised, we must examine electoral reform. We all know that Deputies compete with up-and-coming councillors. We send out the same sorts of letter assuring people that the drains have been cleaned and the potholes have been fixed. One must wonder whether this is a role for national legislators. Electoral reform at a national level goes hand in hand with local government reform. We must have a serious debate on reform of the Dáil, the Seanad and local government.

I want to go further and consider broadening the revenue base. I will be able to do so more thoroughly once the Commission on Taxation has reported. We will be able to determine in greater detail how we can raise money at local authority level. Bearing in mind that there is a Sinn Féin amendment in this area tabled for Committee Stage, I want to consider empowering the local authorities to set the levels and examine the scope of charges. This is what real local government is about. I agree with Deputy McGuinness in this regard.

I thank the Deputies opposite and those on the Government side. Second Stage has given rise to some interesting debate, which I want to continue on Committee Stage.

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