Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The introduction of a property charge is part of the process of developing a system that is as fair and equitable as possible for people to contribute to the provision of services and the running of our country. Increasing income tax as an alternative to a fair property charge would have a very negative impact on the economy, jobs and the general situation. The ESRI pointed out that the local property tax is six times more jobs friendly on labour than increases in income tax. The bigger picture is that the Government has decided that 80% of the collected local property charges should be retained in the local authority areas and that no council will be worse off than under the previous system. The members of the party that I represent will reduce property charges where it is possible to do so, although clearly that will not be possible in every case.

If we take Deputy Martin's view of having his proposition put in place, we will have a reverse situation whereby valuations of property values are lower in certain parts of the country than in the major cities which are experiencing pressure for houses and consequently an increase in their value. The issue is to work out the details of retention of 80% of local charges in each area, of no council being worse off under this system, starting off, and of the right of councillors to have responsibility devolved to them for making decisions arising from the law to reduce property charges, if that is their decision, to publish their budgets and run their services so that the people in the areas that councillors represent know what services they are getting for the taxes and charges they pay. That is the way transparency and accountability can come across. A number of those details remain to be worked out. I am sorry to see Deputy Martin proceeding on the basis of a gospel belief in what he reads in the newspapers. It is certainly not true.

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