Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The decision to introduce a property tax was originally signed up to by the Deputy's party with a view to raising €530 million in 2014. The tax as originally proposed by that party was unfair. This is an issue that is central to the memorandum of understanding, and the Government has decided to introduce it on the basis of a levy of 0.18% on the value of the property and, in the case of houses worth €1 million or more, a higher charge on the portion above that value. There is a recognition of the challenges many people face in this regard. The inclusion of deferrals and the issue concerning pyrite have been referred to specifically by the Minister.

Deputy McGrath is well aware that in the past 20 years, commercial premises, including retail outlets and other businesses, have been hit every year by local authorities that had no wider tax base from which to run services and provide facilities for people. This measure was considered by Government on the basis of it being fair and progressive and with an understanding that there are challenges facing people. The timescale for the debate on the legislation was set out by the Government Whip at last week's Whips' meeting. As the Deputy is aware, the Revenue Commissioners have undertaken the mechanics, design and collection of the tax, with a view to ensuring that everybody will contribute. We are one of the last countries in Europe not to have a property tax. The vast majority of income from the tax will be retained by the local authorities for the provision of facilities and services for the people who pay it in the first instance. From that point of view, the Bill will proceed through this House and the Seanad, as outlined by the Government Chief Whip at the meeting last week.

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