Phil Hogan (Carlow-Kilkenny, Fine Gael)

I know Deputy Charles Flanagan will agree that I do not write headlines for newspapers and that is not the basis on which we collect money nor can it ever be. It is the duty and responsibility of each homeowner to understand the law and be compliant with it. I wish to set out for the Deputy the issues involved.

The Local Government (Charges) Act 2009, as amended, broadened the revenue base of local authorities by introducing a charge on non-principal private residences. The charge is set at €200 and liability for it falls, in the main, on owners of rental, holiday and vacant properties. The charge on non-principal private residences, since its introduction in 2009, has contributed some €205 million to the financing of vital local authority services, including fire and emergency services, maintenance and cleaning of streets, street lighting, planning and development services, public parks, libraries, open spaces and leisure facilities, etc.

It is recognised that the existing revenue base of local authorities is narrow by international standards. This was a consideration in the introduction of the non-principal private residences charge in 2009. While the NPPR charge represents a dedicated source of funding for local authorities and is relatively stable, it does not go far enough in addressing the imbalance in the sector's financing. A proper broadening of the revenue base for local government is being brought about as a result of the introduction of the household charge in 2012 and the potential of the subsequent property tax in due course. This measure is significant because it recognises that local authorities should not be disproportionately dependent on central government funding. The 2009 Act is structured from a starting position of a universal liability for the charge in respect of all residential property. Liability arises each year on a point-in-time basis, which is 31 March in each year. A number of exemptions from the charge are provided for in the Act, the most significant being where a property is an owner's sole or main residence. The charge is on a self-assessment basis and it is a matter for an owner of a residential property to assess whether there is a liability to pay the charge in the first instance. The Act places the charge on non-principal private residences under the care and management of the local authorities, and application in particular circumstances is a matter for the relevant local authority. Perhaps that is an avenue the Deputy might wish to pursue his concerns on the matters he raised.

Where a person owns a property in which he or she does not live and his or her sole or main residence is another property, there may be a liability for the non-principal private residence charge in respect of the property owned by the person, unless it is exempted under section 4 of the Act. Interpretation of the legislation is ultimately a matter for legal advice.

I take this opportunity to clarify that the charge on non-principal private residences is not a second-home charge as it has been termed. The Local Government (Charges) Act 2009, as amended, provides for a charge on residences which are not the owners' sole or main residence. However, I note the Deputy's comments on mounting arrears owing to genuine reasons on the part of some homeowners who might not have considered themselves liable. I will investigate his concerns and seek a reasonable and practical solution with local authorities.

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