Robert Dowds (Dublin Mid West, Labour)

With regard to the comment by Deputy Ó Snodaigh concerning people who pay the charge in cash, I ask the Minister to re-examine that issue. People should not suffer because they are paying this charge in cash.

Obviously nobody likes paying tax. My colleague, Deputy Hannigan, has outlined why we are in the current position. However, a measure like this is more palatable that budget cuts. The main reason I support the Bill is that there is a need for a more adequate stream of funding for local government. I realise this is an interim measure whereby some funding to local government can be recouped. A household charge of €100 is quite small compared to what is paid in Northern Ireland, our nearest neighbour, where the charge averages £1,500 for an average sized house. It is also worth pointing out that Ireland is almost unique in not having some form of direct local taxation. One element of restoring power to local authorities is giving them a proper stream of funding.

There are some weaknesses in this Bill in the sense that it does not go far enough. The €100 charge per house is to be lodged in the Local Government Fund, which is then passed on to local authorities. I have two problems with this and I ask the Minister to give serious consideration to amending the legislation before it goes on the Statute Book. The money collected should go directly to the local authority in which the dwelling is situated. If it goes into the general pot, the more populous local authority areas will not receive what its residents have paid. In this regard, it is the same situation as pertains with motor tax. The motor tax collected in each county goes into a general pot and is then divvied up. That means Dublin and other populous places such as Cork do not get the money that is collected in their areas.

Second, not only should the money go to the local authority for the area in which the money is collected, but each authority should be given the responsibility of collecting that money. It is important that local authorities have the ability to finance themselves. They should not be directly dependent on the Government. I realise this cannot be done immediately but I hope the Minister will consider it in the context of subsequent local government reform.

What I have outlined in my last two points will obviously be inadequate for rural counties with small populations, so some mechanism will have to be put in place to ensure they get central funding to make up the shortfall.

Another issue needs to be addressed as soon as possible. To be honest, a flat charge per house is unfair, in that it does not discriminate between the wealthy and less wealthy. The Minister accepts that this needs to be addressed. Ideally, the determination of a household rate should be influenced both by the size of the home and the wealth of its owners. Taxes related to the size of a home would encourage empty nesters to sell, thereby freeing up homes for young families. I appreciate that there are waivers. Will the Minister check that the waivers will actually go to the right people as the legislation is implemented?

This morning, I heard Deputy Pringle on the radio encouraging people not to pay either this charge or the septic tank charge. Frankly, that is highly irresponsible of the Deputy. It is important that people are encouraged to pay the tax that is imposed. None of us likes paying it, but that has been the case from time immemorial. If we do not pay the taxes that are imposed, it will set us on the road to chaos such as we have seen in Greece where many taxes are not collected at all.

Deputy Pringle's remarks highlight two further points. We need to work, in so far as possible, towards a more equitable system of income tax. There is also a need to secure greater fairness from the EU and IMF, because that would at least set a good example to people.

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