Peter Fitzpatrick (Louth, Fine Gael)

I welcome the opportunity to discuss the Local Government (Household Charges) Bill 2011. It has received much discussion time and some of the debates among the national media have been anything but objective. There are a number of issues worth noting, foremost being the hitherto unconsidered EU-IMF programme.

The EU-IMF programme of financial support for Ireland commits the Government to the introduction of a property tax for 2012. The programme reflects a need in the context of the 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 of such service. This is hardly ground-breaking and relates only to the proper provision of local services.

In light of the complex issues involved, a property tax requiring a comprehensive property valuation system which would take time to introduce and, accordingly, to meet the requirements in the EU-IMF programme, the Government decided to introduce a household charge in 2012. The household charge is an interim measure and a proposal for a full property tax will be available for consideration by the Government in due course.

This proposal is an interim measure and should be viewed in such a context. As such, it may not meet all the requirements of a properly functioning system, but it is the initial foundation of a system that, with minor improvements, could provide a solid platform for the funding of much needed and valued local services. Property valuations are hardly the criteria on which to introduce a measured initiative given the wide price fluctuation available presently.

The charge will be set at €100 and will apply to the majority of owners of residential properties in the country at a point-in-time basis. It is expected to raise some €160 million on full collection and the revenue from the charge will support the provision of vital services provided by local authorities.

Internationally, local services are administered by local authorities and financed by local service charges. In Ireland, local authorities are responsible for, among other services, fire and emergency services, maintenance and cleaning of streets, street lighting, planning, the development services, public parks, libraries, open spaces and leisure facilities. These services are an integral part of local communities. However, these much valued services must be funded and the proposed charges are a small monetary contribution to the maintenance of these said services.

As stated, this is an initial contribution but I firmly believe that the people of Ireland are significantly aware and appreciative of the value they receive from community providers. I can only speak for my own constituency in Louth, that there is not a town which does not have its streets cleaned early on a Sunday morning. This does not happen by magic and these services need to be paid for. In addition, there is an outstanding library service that functions as both recreation and leisure facilities among the constituencies.

As with most legislation introduced by the Government, fairness is of paramount importance. As a result, there are notable exceptions to the charge and not every dwelling will pay the proposed charges as there are many wide-ranging exceptions.

I would encourage anyone to evaluate the proposed charges. However, as an initial measure to ensure the better funding of critical local services, I have no hesitation in recommending this Bill to the House.

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