Seán Kyne (Galway West, Fine Gael) | Oireachtas source

We have debated this issue in the constituency which Deputy Ó Cuív and I share. Last year Fianna Fáil opposed the flat rate household tax but now it wants to keep that tax and oppose this more progressive tax. There is a slight contradiction in that approach.

Sinn Féin's policies in the North differ from its approach in the South. In a partitionist policy, it supported increases of 10% to household rates between 2011 and 2014, with charges amounting to more than £1,000 at present.

It is right and proper that the Revenue Commissioners be charged with collecting this tax. While it is important to debate the principles of the tax, once any new tax is levied, it is important that democratically elected Members uphold the law of the land. When the household charge was introduced, Deputies refused to pay it and encouraged others to do likewise. Revenue has the power to collect this tax because it is, after all, the State's tax collection body.

While I have sympathy for Deputies Mitchell and Mitchell O'Connor, local property prices reflect the area in which one lives and the services available locally. For example, in urban areas there are footpaths, lighting and access to publicly funded municipal sewerage schemes. These are not necessarily available in rural areas. People in rural areas have also paid stamp duty and taxes on the construction or purchase of their houses. They may not have paid as much but they do not get as much in return. For this reason, I agree with the proposal to allow local authorities to set the local property rate after 2016. Authorities in which expensive properties are located will probably be able to reduce local tax rates by 15% or more as we move towards a less centralised system.

Everything must be paid for either by direct taxation or through local charges. The Putting People First document on local government reform is worth reading in this regard. With greater local collection of charges it will be more necessary to monitor local government and budgets. The people who elect their councillors will have the power of scrutiny and through this and other checks and balances they will be able know what their local authorities are doing in return for the money they receive.

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