Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

Now we see the effects of his campaign. Therefore, I take the views of the two previous speakers with a grain of salt.

The Bill provides that commercial and residential properties will be subject to tax in order to fund local government services. I ask the Minister if he will consider a tax on land. I have concerns that the tax cheque is to be handed over to the Custom House with no clear definition on how the money is to be distributed. I, therefore, ask for regulation or legislation indicating how the funds are to be allocated.

It is clear that homeowners Dublin will subsidise those in the rest of the country. Property in Dublin is much more expensive than elsewhere. In most small towns and rural areas house valuations will be in the lower valuation bands. I believe in social solidarity. However, wealthier areas of the country will subsidise less affluent areas. We all pay the same energy charges. Electricity services cost the same in County Kerry as they do in Dublin, even though provision in County Kerry is more expensive. Approximately 48% of the housing stock in County Donegal will be valued at below €100,000. This will mean a charge of €45 per house next year, a reduction of €55 on the household charge. Approximately 43% of houses in County Mayo will be valued in the €150,000 band. The average house valuation in Dublin city will be €300,000. Approximately 33% of homes in the constituency of Carlow-Kilkenny will be valued at the lower rates. The average charge in following years will be €90, a reduction of €10 on the household charge. There will, therefore, be a need for subsidisation to rebalance county council budgets.

This tax should not be seen as a Dublin tax, a Cork tax or a Galway tax. However, it will be difficult to explain to a homeowner in Ringsend that his or her small house is valued at a higher figure than a mansion in Leitrim, that his or her property tax will be used to subsidise hedge cutting in Manorhamilton. Has the Minister considered the introduction of a charge of €5 an acre on productive land? Will he tax brown field sites and land zoned for residential use to limit the number of derelict sites and the rezoning of land in urban areas?

I refer to Deputy Dessie Ellis's views on the voluntary housing sector.

I question Deputy Ellis's figures. My calculation indicates that the cost per unit for voluntary and social housing is approximately €2. I am not sure how Deputy Ellis worked it out.

When this Bill passes through the Dáil next week, we will have a period in which to reflect, fine-tune and determine how the legislative mechanisms can be used fairly and productively. The proposed tax is a form of wealth tax. I look forward to hearing the Minister's response later in the debate.

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