Stephen Donnelly (Wicklow, Independent) | Oireachtas source

I would like to start by voicing my opposition to the Government's use of the guillotine on this legislation. This is the second time it has happened in two days. Yesterday, the guillotine was used on the Social Welfare Bill. Such a move intentionally stifles much-needed parliamentary debate on these two critical Bills.

Before the last general election, the government parties talked a good talk about reform, a new type of politics and a meaningful role for Dáil Éireann. It turns out that it was just that - talk. There has been no democratic revolution, no maturing of political debate nor any meaningful role devised for Dáil Éireann.

I am not trying to convince the Minister for Finance of anything on this property tax. The arrogance of this Cabinet has rendered it incapable of listening to other people's ideas. Instead, I will use the few minutes I have to give a voice to those who cannot pay and to those who should not pay this tax. Starting with those who cannot pay, one in five mortgages is now either in arrears or is being restructured. One child out of ten is now in food poverty. Two adults out of every three have less than €100 a month when bills are paid. That was before their PRSI was raised and their child benefit was cut this week. Does the Minister think they will have a few hundred euro spare at the end of next year to give him?

As for those who should not pay, on what exactly are we taxing those who paid tens of thousands of euro in stamp duty and are now in negative equity? We are taxing their debts. Before the last election, the Government promised to help people caught in that trap. Instead, it has increased their income tax, cut their child benefit and caved into the banks on finding meaningful solutions to distressed mortgages. To top it off, the Government is now going to tax them on the debt that has financially destroyed them but, somehow, it will exempt first-time buyers from the tax, an extraordinary move.

This is not a wealth tax. If it were, the Government would not tax people in negative equity. It is not to raise money for local services. If it were, the Government would tax the occupier of the house who uses the local services and it would fully adjust for regional variations in prices. It is not a progressive tax. If it were, there would not be this meaningless single jump at €1 million. This tax is not fair. If it were, stamp duty would be considered and people in Wicklow, Dublin and other urban areas would not have to pay multiples of what other areas will pay. Most of all, this tax is not necessary. The figure used for how much this tax will raise is €500 million. It is not. Taking out €500 million from the economy is going to reduce economic activity. Using the Government's own multiplier, the Government will raise €350 million from this tax. However, next year's Exchequer figures include pay rises of €700 million for public servants over the past four years. The property tax will raise half the amount needed for pay rises to public sector workers. So much for paying for vital public services.

I have tabled amendments for Committee Stage that address all the issues I have raised but not one will be taken. If those on the government backbenches believe they have a role that can influence legislation, will they tell the Minister they will not vote this Bill through next week in its current form?

Winston Churchill said, “For a nation to try to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle.” Good luck with that.

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