Phil Hogan (Carlow-Kilkenny, Fine Gael)

The EU-IMF programme of financial support for Ireland commits to the introduction of a property tax for 2012 and 2013 under its fiscal consolidation measures. The programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services. In the light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce and, accordingly, to meet the revenue measure in the programme, I have indicated my intention to introduce an interim household utility charge in 2012 on a flat rate basis. I will bring proposals to the Government in the near future on the legislative and administrative requirements necessary to implement the charge. It is my intention that the revenues from the charge will support the provision of locally based services and, in turn, reduce local government's requirement for Exchequer support for the funding of such services.

The progamme for Government also proposes the installation of water meters in individual households and the introduction of water charges based on usage above a free allowance. My Department is preparing a strategy to implement these proposals, including the funding of the metering programme. Further details will be made available following Government consideration of the proposals. The EU-IMF programme of support further commits Ireland to introducing water charges for households by 2013 at the latest. However, no decision has been taken by the Government on the exact date for the introduction of water charges by meter.

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