Phil Hogan (Carlow-Kilkenny, Fine Gael)

As part of the efforts to close the gap between income and expenditure in the public finances, the 2012 Exchequer allocation to local government was reduced in budget 2012 by €164 million compared to 2011. The introduction of the household charge in 2012 is therefore timely to allow local authorities to have the necessary resources to deliver services to their communities at close to existing levels in the coming year.

It is estimated that there are some 1.6 million residential properties potentially liable to the household charge. As such, if collected in full, the household charge has the potential to raise €160 million annually. The household charge is framed on a self assessment basis at a point in time. It is a matter for those who own residential property liable to the charge to declare this and pay the charge by the due date, 31 March 2012. As an incentive to pay the self assessment charge, late payment fees and late payment interest apply, and any amounts due and unpaid remain as a charge against the property concerned. Such amounts will have to be discharged in the event of the sale or transfer of the property concerned.

Over 68,000 properties have registered to pay the household charge from 1 to 31 January 2012. This represents some €6.8 million. The large number of people paying the charge is a clear indication of compliance with the legislation and an acceptance that the household charge is necessary to fund vital local services in our communities.

Motor tax is also a source of funding to the local government fund. I am concerned at the high level of off-the-road vehicle declarations being made, and am conscious of the need to tighten the current system of declaring vehicles off the road. I intend to bring forward legislative proposals in the near future on this matter.

I will be keeping the income being generated from the household charge under constant review and I and local authorities will take any necessary measures, as appropriate, in regard to compliance with the legislation.

See this speech in context