Finian McGrath (Dublin North Central, Independent)

I thank the Ceann Comhairle for the opportunity to contribute on this Bill, which is a clear attempt to do something positive about an unjust tax on homes. I welcome and support the legislation and commend Sinn Féin on introducing it.

The Bill is clear and comprises three sections. There can be no dithering on the main issue - one is either for or against a home tax. It is not a tax on wealth or property. This is the crucial issue. It is time the Government admitted its mistake. It is not good enough that senior Ministers, for example, the Minister for the Environment, Community and Local Government, Deputy Hogan, are running around Brazil while people are being penalised at home for the actions of others.

Let me challenge the Taoiseach on some of his comments yesterday to Deputy Boyd Barrett, whom he lectured on breaking the law. Let us examine the State's history. Since its foundation, 40 Oireachtas Members have been arrested and imprisoned for breaking the law on issues about which they felt strongly. My good friend and colleague, Deputy Durkan, was jailed in the 1980s for protesting in support of farmers. The late Tony Gregory went to Mountjoy Prison because of his protest on behalf of this city's street traders. There is a proud tradition of defending the Molly Malones. Given these examples, we will take lectures from no one about legislators breaking the law.

I have already paid my tax - I paid stamp duty when I moved house. Many families have already paid central government thousands of euro in taxes. The Government wants people to pay tax for local government services three times. The public pays for these services through taxation everyday. Households pay for the fire brigade service, septic tank charges and management fees. Water charges will be added to that list soon. This is the real world, yet the Government wants the same households to pay an additional household charge.

I welcomed Deputy Stanley's comments last night. Not only did he complain about the charge and introduce the legislation, but he also suggested progressive ideas on funding central government through taxation. I strongly support the suggestion to introduce a third rate of tax of 48% on individuals' earnings above €100,000, which would accrue €410 million to the State. Group relief is availed of by companies that transfer losses to profitable companies to write down tax receipts. Its abolition would accrue in the region of €450.3 million. Abolishing legacy property reliefs would raise €341.8 million. A 1% wealth tax, which we in this country seem to be against, would accrue approximately €900 million. These are solutions to the question of funding local government services. The Opposition is not just introducing legislation to withdraw the household charge. We are suggesting solutions to the problem. For this reason, many members of the public listen to what is being stated.

I supported the second home levy, as it was a direct tax on people with extra houses.

Consider examples of good practice in other European countries. In Denmark, councils receive a portion of the corporation taxes raised in their respective areas. In Norway, there is a local wealth tax on natural resources. We are not examining such ideas because we are too conservative and afraid and our Government is asleep. In Spain, there is a local tax on development land. When the land's value increases, a percentage of its value goes to the local authority. These are sensible solutions.

It is important that we realise the difficulty the household charge causes many families. They are feeling the squeeze, paying many taxes and are suffering. Many people are losing their jobs and small business are going down the tubes due to the pressure. It is for the Government to assist these families and to kick-start the economy, yet the household charge's introduction has damaged the fight back. During the referendum campaign, we discussed growth and developing the economy, but taking €100 and more out of people's pockets is killing the economy, as they would otherwise have spent that money in their local small businesses and shops.

I support this commonsensical legislation. It is important that the Taoiseach, the Minister and the House listen to constructive proposals on local government funding. Such proposals have been made during this debate. Of course we must fund local government. I sat on Dublin City Council for five years and understand the reality of the situation. We also have a priority to put forward sensible taxation proposals. This legislation is part of the fight-back and part of trying to kick-start the economy. I strongly support this Bill.

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