Dáil debates

Friday, 1 March 2013

Finance (Local Property Tax) (Amendment) Bill 2013: Second Stage

 

1:10 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

It does not surprise me given that those Members voted yesterday against extra time for this important debate. When the Tánaiste offered them the opportunity to continue the debate until 5.30 p.m. today, Fianna Fáil and Sinn Féin voted against it.

From the moment a property tax was mooted, it was implicit that while it had to be introduced, it would be fair. The outcry from all parts of the country and in my constituency of Longford-Westmeath indicates that this is not the case. Budget 2013 decreed that €3.5 billion must be raised, made up of €2.5 billion in expenditure reduction and, most importantly in the context of this debate, €1.25 billion in revenue. The mooted property tax became a reality. Fianna Fáil proposed and agreed it, but now its members cry crocodile tears at its introduction. On each side of the House there are conflicting viewpoints as to whether the troika required Ireland to introduce a property tax. Due to Fianna Fáil's actions, it did. More specifically, debate is most heated as to whether we should or should not take heed of such a requirement.

We are told that Ireland is the only country in Europe that does not have such a tax. This argument fails to take into account the fact that other EU countries do not have the same punitive level of stamp duty that applied in Ireland. On numerous occasions I made a strong plea to the Minister for Finance on behalf of people who are in serious negative equity. I welcome his comment this morning in opening this debate that there will be some concessions in that regard. One way or another, we are entrenched in a nightmare return to the horror of evictions, driven by the corruption of a so-called elite. As history repeats itself, the landlord is not the English squire, but the effect is still the same. We have been forced once again to doff our hats, this time to Europe, but driven to poverty by the actions of our own, particularly Fianna Fáil and, when it was in government, the Green Party.

  Of great concern to me is the effect the tax will have on our architectural heritage.  People could be forced by hardship to unroof their fine historical houses to avoid this levy.  As we seek to encourage tourism through The Gathering and generate interest in our heritage, this would be devastating.  Heritage is the cornerstone of our tourism industry.  We have seen the heritage budget shamefully cut over the last number of years.  It is now time for a considered approach to the reality that taxation could be the last straw.  Rural Ireland could be given a huge boost if exemptions were linked to a willingness to open properties to the public and tourists in varying degrees.  This of course would be dependent on the State's being prepared to cover insurance costs.  Given current insurance prices, it would probably cost more than the property tax to provide public liability cover.

  The role of our fast-disappearing great houses was wonderfully portrayed in a film I saw recently, "The Raj in the Rain".  It portrayed a landed gentry whom many would erroneously consider to be more foreign than native.  The sad fact is that today only 30 such families occupy their original estates.

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