Fergus O'Dowd (Louth, Fine Gael)

This is a very important debate and it comes at a time when the country remains in an extremely difficult position. Internationally, significant financial problems have arisen in countries such as Greece, etc. This debate focuses on a very narrow part of what the Government must do in order to meet the requirements laid down in the agreement with the troika. Nonetheless, I accept there is a need for the Government to spell out the position again. I challenge Sinn Féin. Later, I will challenge them directly with regard to some of the points they have made.

Deputy Stanley has proposed that the Local Government (Household Charge) Act 2011, which has so far raised more than €94.5 million, be repealed. This is a significant amount of money in today's challenging financial circumstances and is crucial to the continued funding of local government and the provision of essential local services. The legislation was enacted relatively recently by the Oireachtas and there is no basis or justification for its repeal. Given international events and continued uncertainty in the international economy, many will find it incomprehensible that Deputy Stanley and Sinn Féin can make this proposal at this time.

The household charge was introduced as part of the agreement with the troika, to which Ireland is committed. It is a vital funding element of our public services at local level. The full yield from the charge is estimated at €160 million, based on payments from all liable households. The purpose of the Act was to give effect to the EU-IMF programme of financial support for Ireland's commitment to introduce a property tax by 2012. The programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services. It was considered that, in light of the complex issues involved, a property tax would take time to introduce and accordingly to meet the requirements in the EU-IMF programme, the Government decided to introduce a household charge in 2012. I want to emphasise that this charge is, and was always intended to be, an interim measure.

The Local Government (Household Charge) Act 2011 provides, essentially, for the majority of owners of residential property in the State to pay an annual charge of €100. Liability arises each year on a point in time basis, which is 1 January. As I have noted, the charge is expected to raise some €160 million on full payment, and revenue from the charge is supporting the provision of the vital services provided by local authorities in our communities. Internationally, local services are administered by local authorities and financed by local service charges.

Deputy Stanley will be well aware of this. It is accepted practice to fund local service through a property tax and this is the position in Northern Ireland among other places.

The Sinn Féin Deputies seem to be exercising a particular form of doublethink at which they are becoming quite expert.

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