Dáil debates

Tuesday, 13 December 2011

Local Government (Household Charge) Bill 2011 [Seanad]: Second Stage

 

7:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)

The most insidious aspect of the household charge is that it is being imposed as part of the IMF-EU deal which underlies the welding of the bank debt to the sovereign debt. When people find themselves in difficulty with this - for some it will be the straw that breaks the camel's back - they can at least have the satisfaction of knowing that somewhere a major bondholder will sleep easier in their bed at night.

Indeed, if we want to know what else is coming down the track all we need do is read the IMF-EU memorandum of understanding rather than bother with the programme for Government. The programme for Government means nothing. The memorandum of understanding determines what will happen. The memorandum of understanding with the EU and IMF commits Ireland to the introduction of a property tax for 2012 and to an increase in the property tax for 2013. At least we cannot be fooled into believing that these are temporary measures or that they will not be increased. The household charge is only a holding device prior to the introduction of a full scale property tax which the Government has committed to introducing this time next year at the latest.

I referred to reading the original memorandum of understanding because there was an attempted sleight of hand when the updated and ironically named stability programme was published last April. It refers several times to the alleged independence of the Irish Government in deciding what to do in order to ensure the debt is repaid. Many believe it cannot be repaid but we can happily destroy the country in the process of trying.

It is a bit like when one owes Tony Soprano money and he gives one the choice of burning down one's house and claiming the insurance money or stopping feeding the children. Like the IMF and Goldman Sachs, the Sopranos are not fussy as long as one pays them back.

Page 21 of the updated stability programme states: "Of course policy is a matter for Government." That is total and absolute nonsense. The only matter which the Irish State currently decides is where exactly to implement the massive cuts that we witnessed last week. The overall strategy is decided by the IMF and the EU and, as I said, the programme for that is laid down in the original memorandum of understanding.

The Minister admitted the household charge was necessitated by the IMF-EU programme of austerity, yet the Government would also claim that it is still a free agent. At least the Tánaiste had the good grace to abandon quickly his bravado of stating that it was either Frankfurt's way or Labour's way. He had his chest out and shouted that prior to the election. Frankfurt's way is Labour's way, as we have seen.

There is also the claim that the charge is needed to pay for local services. It is, but only because the State has stopped funding those services out of overall revenue. People's taxes will not be reduced and this charge and the coming property tax constitute an extra tax with no extra or improved services. Services are actually declining. The overall impact of the austerity programme and other measures will ensure that the level of public provision, through local services and the overall public service, will continue to decline.

People are being hit both ways. They are paying more for less. The assault on people's pockets and quality of life is being justified on the basis that the austerity programme is required to ensure there are teachers, nurses and gardaí. Of course we all know that is nonsense. We may have to borrow to pay for services but we always have, at least since 1932 with the first Fine Gael Government, which had a similar attachment to looking after banks and not providing public services.

This is not about paying for public services. It is about paying the bank debt. That is why we have the IMF and this new double form of taxation, one my party will strongly oppose.

Deputy Stanley mentioned public meetings taking place all over the country in opposition to the septic tanks charge. I attended a meeting in Listowel last Friday night where over 400 ordinary citizens who will be directly affected by the tax turned up. It was obvious that despite the invitation neither Government Deputy turned up. That is an indication of how fearful they are about facing the public because their constant U-turns on their pre-election promises are being exposed.

Septic tanks will have to be upgraded to complement the terms of the regulation. People who got planning permission between 1975 and now have done nothing whatsoever to undermine it and have complied with it, but will now be expected to put a lot of money into septic tanks to update them to comply with the requirements. The regulation was in place in 1975 but was not implemented. The ordinary public will have to pay for it. It is an absolute disgrace.

People right across the country will refuse to pay. Deputy Mattie McGrath has said he will lead a campaign to refuse to pay the charge. Genuine political leaders of political parties who are concerned about the poor and the rights and entitlements of ordinary decent citizens will be with people opposing the terrible austerity measures that have been brought about by the Government.

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