Phil Hogan (Carlow-Kilkenny, Fine Gael)

Senators also pointed to the provisions in the Bill which enable the level of the charge to be increased in line with changes in the consumer price index, CPI, in the future. I stress that this provision would only allow for minimal changes in the level of the charge and it is also included in the Local Government (Charges) Act 2009. Any significant change in the quantum of the charge will require primary legislation and cannot be increased without further reference to the Oireachtas. I would also point out again that the household charge is an interim measure and will be replaced by a full valuation-based property tax in due course.

The charge will be administered on a self-assessment basis and is to a significant extent based on those arrangements applying to the non-principal private residence, NPPR, charge introduced under the Local Government (Charges) Act 2009. It will be a matter for owners of residential property concerned to register and pay the charge. It is intended that the liability date will be 1 January with payment due by the end of March for those not opting to pay by instalments. This liability date was chosen due to its fit with the overall annual financial cycle of local authorities and will allow moneys collected to be expended by authorities in the year collected. It also provides clarity as to ownership on the liability date as there are likely to be very few, if any, property transactions on New Year's Day.

I wish to make clear that the liability date of 1 January is the date upon which persons will have to assess whether, as an owner of a residential property, they are in fact liable to pay the household charge. The payment of the household charge can be made from this liability date up to and including 31 March 2012.

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