Dáil debates

Wednesday, 14 December 2011

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

 

5:00 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)

I am sharing time with Deputies Aengus Ó Snodaigh and Sandra McLellan.

Some months ago in this Chamber, we debated the revenue that could potentially be raised from untapped natural resources believed to lie in Irish coastal waters. An interesting point made by one speaker was that the revenue was referred to as Sinn Féin's leprechaun gold. This was a puerile attempt to denounce Sinn Féin's view that our natural resources should benefit all our people. The idea of spreading the tax burden was dismissed. Nine months after the debate, there are attacks that will target the little people with an annual charge of €100 that is entirely indiscriminate and punitive for householders, many of whom do not have the means to pay.

As the dust begins to settle on last week's budget, all of us have had the opportunity to absorb the implications of the regressive austerity measures that have been rammed down the throats of the State's most vulnerable citizens. People voted for change but we have a government that seems hell-bent on implementing the same grossly unfair policies of its predecessor.

The household charge, an indiscriminate flat tax, will have a disproportionate impact on those struggling to make ends meet. There is no equality regarding the payment of the tax. It fails to take into account or differentiate between the individual circumstances or hardship faced by individuals or families. The millionaire householder is to pay the same as the pensioner or person on carer's benefit.

When the Taoiseach addressed the nation on the Sunday before the budget, he stated quite clearly that the average citizen was in no way responsible for causing the catastrophes that have led to the loss of our economic sovereignty. This is not much comfort to those families who must do much of the heavy lifting and meet the State's financial burden. Those responsible for causing the crisis remain immune from any real sanction. They are free to live a cosseted existence and are exempt from having to face any real consequences of their actions.

By any standard of fairness, it is wrong that the household charge will be imposed on people regardless of their ability to pay. One hundred euro may not seem a lot to some politicians who believe it is appropriate to pay advisers in excess of €135,000 and at the same time draw down a wage that greatly exceeds that amount. To the unemployed or working poor, however, it represents a significant burden. This isespecially true given that the latter face additional stealth taxes, cuts to their benefits and changes that deny them a decent education and health service.

The number of unemployed is close to 450,000 and the rate of unemployment is 14.5% of the working population. In my constituency, Dublin South West, the rate of joblessness is one of the highest in the country, with over 11,000 people on the live register in Tallaght. The most recent CSO data show that in November, 2,261 people who found themselves unemployed were under the age of 25 and have little or no prospect of employment.

To make matters worse, the cuts in funding to CE schemes will deny many people the opportunity of finding work.

Poverty, deprivation, hopelessness, alcohol and substance abuse, marital break-ups and growing despair are the consequence of unemployment which, coupled with forced emigration, makes this a very bleak time for families. How is it fair that families depending on social welfare or low paid jobs are expected to pay the same household charges as those who earn 100 times more than what the State pays in benefits? Nobody on the Government benches has answered that question. The implementation of the household charge is yet another example of the Government's abandonment of its pre-election promises to protect the most vulnerable and families on low incomes. This charge will mean there is less money to spend in the local economy, which in turn will lead to further economic stagnation.

The new poor are not all living in local authority housing or unfinished estates. A considerable proportion of the new poor are living in estates all around the country. That is why I have a difficulty with this tax.

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