Dáil debates

Tuesday, 19 February 2019

Management Fees (Local Property Tax) Relief Bill 2018: Second Stage [Private Members]

 

10:20 pm

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I thank colleagues who contributed to the debate. I will respond to Deputy Jan O'Sullivan's queries shortly. The Minister of State, Deputy Kyne's, contribution was a type of history lesson on the LPT and an outline of the review. We know that, which is fine. However, this Bill is a genuine attempt to right some wrongs.

I was taken aback by the contribution from the Minister of State, Deputy Canney. It was not just the fiscal gymnastics in which he engaged when he spoke about matters such as the principle of horizontal equity and the principle of vertical equity. I have never previously heard him speak in such a manner on this. I learned new phrases this evening so perhaps every day is a school day. I am trying to right a wrong and make the LPT a little fairer. Thousands of homeowners in my constituency in Fingal County Council are not living in big mansions or big gated communities. I refer to teachers, gardaí and nurses living in apartments. Many of them bought them at the top of the market and they are paying between €2,000 and €2,500 in management fees.

I contest the Minister of State, Deputy Canney's, response that this relates to the horizontal equity test, which he was teaching us about earlier. He said the contention that people paying management fees are somehow paying on the double does not stand up to scrutiny. He should ask anyone who is paying LPT in full, particularly in areas where property prices have risen and the person is paying a decent amount from net income. The property tax does not take account of people's income, nor do management fees. They are paying for items such as wastewater treatment, parks in the estate, open spaces - I am not referring to shared landings or the like - and the roads they use through their LPT. Management companies are in a very difficult position right now because there is an overall issue.

Deputy Jan O'Sullivan referred to what the Labour Party would do. I have published three Bills on this and I was not a Minister of State with responsibility for housing in the Department. There are actions that must be taken to rectify this. One relates to fairness and that is what this Bill is about.

The Minister of State, Deputy Canney, gave the Government's response after he asked us to park our Bill for six months during which time he said the Government would have a look at it in more detail and cost it properly. I was open to that initially before he gave what was a condescending, dismissive, trite and petty response on behalf of the Government. To be fair, he is not like that, but that is the official Government response. That is how it treats Opposition legislation. Frankly, it is disgraceful. They should talk to the thousands of people concerned across the country. Some 200,000 homeowners or approximately 500,000 people say this is an issue. These are owner-occupiers, not landlords and investors, and I take Deputy Jan O'Sullivan's point that we should be far more specific about that on Committee Stage. I know it is an issue, despite the Government's response to a Bill, which is a proposal by an Opposition party that does not have the Revenue Commissioners' resources to cost all our proposals, yet another criticism that was made. Of course, it is an approximation and we have done the best we can. That is something that would be done on Committee Stage.

On foot of the Minister of State's response, it would be impossible for me or my party to accept the request from the Government to delay the Bill for six months to allow for more detailed consideration. That should be done at the housing committee. Deputy Jan O'Sullivan has one of her Bills before the committee tomorrow. Let us do it through the committee because I do not trust the Government to do it within six months. When the Minister of State's colleagues in Fine Gael are out and about over the next few months they should talk to people, mainly in urban areas, and ask them if this is an issue and if they are paying €2,500 a year in management fees. It is an issue when they are paying full LPT. This Bill is a recognition of that. There is a maximum of €300 and, incidentally, that would be in a minute number of cases. We are looking at an average reduction of approximately €86.

This is an acknowledgement that there are managed areas, managed estates and apartment blocks that are providing the services themselves whereas in other areas the local authorities do so. Deputy Jan O'Sullivan raised a fair question when she asked if this would be a way of ensuring that some estates which should not be private estates would remain private and not go under the council. That would not be our desire at all. I believe more estates should be taken in charge. Indeed, in my area of Fingal, the council is moving to take some estates in charge. However, we should not forget why these are private estates. The reason is that in the original planning permission it was a condition of the local authority that they would be managed estates. We have to look at estates that can be brought back under the local authorities by taking them in charge.

This is a measure to recognise the fact that thousands of families need a break on these. These are the people who, to quote the Taoiseach, "get up early in the morning". They are working families. Many of them bought their homes and apartments at the height of the boom and they are paying management fees. The Minister of State mentioned the review of the LPT. We are still waiting to see what the Government will do with the property tax. At present, if nothing is done LPT will be doubled across the country. I cannot understand the reason for the continued delay by the Government in publishing the review. I have a fair idea, however, that it is down to pure politics. The Government wants to produce it in April or May in advance of the local elections. It wants to say what all of us want, which is that there will be no increase in the LPT. Fianna Fáil's position is that there should be no individual increase in the tax. Why not produce it now? What is the delay?

With all due respect to the Minister of State, Deputy Kyne, I would have expected him to give us an indication of when that will be, but we do not know. Instead, we have people in the Department of Finance and in the Revenue Commissioners writing a script for the Minister of State, Deputy Canney, that does not warrant any further comment. If the Opposition brings forward Bills with its limited resources, at the very least the Government should show some respect for the spirit of the legislation.

I agree that changes to the Bill are needed and I hope to work with colleagues in this regard. I welcome the support of Sinn Féin, the Rural Independent Group and others for the Bill and I hope I will have Labour's support for it in order that we can move it on to Committee Stage, deal with some of the very valid questions Deputy Jan O'Sullivan raised and work on the specifics.

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