Eamon Scanlon (Sligo-Leitrim, Fianna Fail) | Oireachtas source

I commend Deputy O'Brien on bringing the Bill forward. The Bill provides for property tax relief for homeowners who are paying management fees and is one of a suite of measures that Fianna Fáil proposes to help people living in multi-unit developments. This is practical and long overdue legislation. The Government has continually neglected these owners and their issues, despite the fact that more than 500,000 people live in these types of properties. Under the legislation, apartment and homeowners would receive a discount on property tax, which would be worth one third of their management fee or property tax, whichever is lower. The discount would be capped at €300 a year provided the owner has paid the management fee in full. The local property tax was established to fund services such as maintaining public lighting, roads and paths, groundskeeping and management of public parking. Apartment owners and residents of managed complexes already provide many services themselves, including maintenance and upkeep of local recreation areas, through their annual management fee, yet they have to pay the same level of local property tax.

I have been contacted by people living in an estate who pay management fees that cost more than €2,000 per year in some cases. These residents should at least have a reduced fee because it is completely unfair to be charged twice for the upkeep of their area. The legislation is about ensuring we have a fair property tax system and nobody has to pay on the double for the same services. According to the Thornhill report on local property tax, based on an average local property tax of €257, the average benefit of the tax relief to a recipient would be €86 and at least 200,000 households would benefit, at a total cost of €17.5 million.

Many people who bought homes at the height of the market are paying high management fees of up to €2,500 annually. This can be the equivalent of two months of mortgage payments. The uncertainty surrounding the delay in the review of local property tax is causing major stress for homeowners and local authorities nationwide. This legislation will offer some comfort to those affected who do not know whether to prepare for an increase in the payment. Fianna Fáil made a detailed submission to the review in which we firmly outlined our opposition to the introduction of any increases in local property tax. We are committed to ensuring a fairer, more equitable system is introduced once the review has been finalised and published.

It is important to note that the provisions of the Bill would apply to owner occupiers only and would not apply to investors. Many owner occupiers bought apartments in the boom and paid high prices of between €250,000 and €350,000.

That is what the prices were at the time and there is no doubt that they are struggling now and need any help they can get. Hopefully, it will also encourage people to pay their management fees in full. There is a problem in that regard and a great deal of money is owed to management companies in circumstances in which people, quite simply, cannot afford to pay. They have to live.

Another issue was raised by Deputy Murphy O'Mahony. People applying for planning permission in rural areas face development charges of €10,000 or €12,000, even though they provide their own site and sewerage. They have to pay for their own water, of course, but that is not the problem. They have to pay these extraordinary development charges which are said to be for libraries, lighting and footpaths, but those people get little benefit. There is a great deal to be done.

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