Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for the opportunity to speak on this Bill. We tend to forget that in 1977, when rates were abolished, their abolition was ridiculed as a political ploy and as economic recklessness. At the time I did not have a vote but I do remember people giving out, not about the rates per se but about the valuation method used. The old poor law valuation method was deemed to be archaic and out of date, which it was, and what it needed was reform rather than abolition. In 1977 we were recent entrants to the European Union, or the European Economic Community as it was then, and money seemed to be flowing in. It appears that we came to the conclusion, on the basis of money coming into Ireland in a never-ending stream, that we did not need the money collected by way of rates. We had the same situation after the advent of the euro, when people thought that money would flow in indefinitely. It was very easy and the Germans, the banks and others, who must bear some responsibility, decided that we were a good case for credit. Credit came in too freely without any proper oversight and we saw what happened.

Deputy Murphy and others have referred to the property tax as a services tax and I would like this tax to be called thus. I would also have preferred it if occupiers were duty bound to pay some of the tax because that would have given a far stronger signal that the tax is for the provision of services. Fundamentally, the tax should be for services for householders. The money raised should be ring-fenced, as far as possible, for the local authority in the area in which it is collected. Furthermore, the people who collect it and are charged with spending it should be accountable to the public.

We need to look at fine-tuning the deferrals because there are many people who do not have an ability to pay and who paid dearly in terms of stamp duty on their houses. I know of a person who was not a first-time buyer and one third of his significant mortgage was for stamp duty. We must also evaluate the tax on an ongoing basis. Finally, I ask the Minister to clarify the issue concerning how far the powers of the Revenue Commissioners extend with regard to collecting the tax.

See this speech in context