Fergus O'Dowd (Louth, Fine Gael)

The reason for introducing this legislation is that it is part of the EU-IMF deal. This Government is committed to the deal made by the previous Government in order to keep money coming into the country. This measure is an essential and fundamental part of that agreement. The reality is that if we do not enact it, the cheques will no longer be signed and the money will not come from the EU-IMF. There will be a collapse in our infrastructure and our economy. Our education and health systems will be in very serious difficulties. That is the choice Deputies have to face. If all the Deputies on the other side were sitting on this side of the House, they would have to come up with an alternative. This is an interim measure that will last for two years.

I reiterate what I noted on Second Stage. I will be crystal clear. No individual local authority tenant, in Dublin, Cork, Galway, Drogheda, or wherever, will pay one penny of this charge. The broad general measurement of house ownership here is that if one does not own a house, one will not pay the tax. If a person is in private rented accommodation, he or she will not pay this tax. It is as simple as that. Deputies can shake their heads but that is what is stated in the Bill. If a person is in serious difficulties with a mortgage or is in receipt of a mortgage subsidy from the HSE, he or she will not pay this tax.

As for the builders and all those wonderful people who built estates that fall into categories 3 and 4, the 1,200 appallingly and disgracefully unfinished estates in our country, each of which will be listed and named separately in an order made by the Minister, Deputy Hogan - none of those people there will pay the tax.

I again direct the attention of Deputies to section 12 of the Bill. This section allows a county or city manager to take into account exceptional circumstances in regard to individual cases. A person would have to make a case regarding such exceptional circumstances. There are further powers in the Bill which will allow for that to happen.

The legislation will make local government more accountable because the money collected from this charge is to be ring-fenced solely for local authorities. It is correct to state it will go into a local government central fund but it will be disbursed to local authorities according to a formula that will be fair and equitable. Accordingly, counties that would face a potentially low income will not lose out because they do not have sufficient population base. The system will be fair and equitable.

Deputy Healy spoke about job losses. Let us put this on the line - there will be thousands of job losses if the EU-IMF deal stops and we do not receive the money. This measure will keep people in employment, keep them working in local government. It will put money in place to provide for the cleaning of the streets, the servicing of existing housing stock and the improvement of areas of designated poverty and disadvantage. The proposition to remove the section would take away every one of those provisions.

Accountability will mean that elected representatives at local level will be challenged by voters as to how they performed in the previous year. This will be the first time they will be asked what value they are giving for the money they spend. There will be more accountability, more efficiency and a much more effective local government. For that reason, my party believes this Bill should stand. If it must go to a vote, let us have it.

See this speech in context