Brian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this Bill, at which I had a good look today. Many homeowners across my constituency of Laois-Offaly are experiencing serious financial hardship, not just with huge debts on houses but because the last 18 months of Covid have meant a huge hit on their income. For many of those families, the recent announcement by the Government regarding the local property tax has caused further distress and concern. The truth is that the local property tax is a tax on the family home, not on wealth or accumulated property. The tax does not just affect cuckoo funds, millionaires and speculators; it targets everyone, including those who have very little besides the roof over their heads.

Thanks to these proposed changes by the Government, 36% of homeowners will see an increase in their property tax. Some of them may live in a house that has a high monetary value but they may have very little income, and do not have the income to do very much with that house. These are homeowners who already paid stamp duty when they bought the house. Many of these homeowners have some of the highest mortgage interest rates in the European Union and they have huge outstanding capital sums on those mortgages. The local property tax effectively becomes a tax on debt. Some of these people also pay management charges if they live in multi-unit housing or apartment complexes, so they pay again there. These families still fork out money for privatised local services such as refuse collection and pay their taxes for the upkeep of roads, schools and everything else. People pay a lot of local charges but many of the charges they pay are privatised local charges, on top of this local property tax. If homeowners are being asked to pay an increase in property tax, they should have a right to know exactly what they are getting in return.

The Minister has confirmed that these changes will mean councils can keep all the money raised from property taxes, instead of the 80% they can currently retain. However, as one of my colleagues alluded to, this takes from one county and gives to another. Counties with low levels of commercial rates, which do not have a strong broad commercial rate base, will be left in a vulnerable position. At present, Laois and Offaly county councils receive funding from the equalisation fund. What will happen to those councils after the two years' grace is up? Will the Government commit to making up the shortfalls that many councils are certain to face through Exchequer funding? For how many years will that funding be provided?

We in Sinn Féin have argued consistently that this tax is not a wealth tax. It is a tax on the family home and on the roof over your head. In its current form it must be scrapped. We need to have a serious conversation about the best way to tax wealth and to fund local authorities. I have taken part in many discussions over the years on this subject, in the Dáil Chamber, in council chambers and in other forums through the local authorities. It is important that we do that. This tax needs to be scrapped because it is unfair as it is currently constructed.

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