Verona Murphy (Wexford, Independent) | Oireachtas source

The introduction of the property tax and its predecessor, the household charge, has been controversial; most obviously, around the time of their respective introductions. It perhaps ranks alongside the universal social charge as the most controversial of taxation measure in recent times. Those things were introduced in a time of financial crisis. Unfortunately, we may be at the beginning of yet another financial crisis and this time as a result of our Covid-19 measures.

I understand the proposals presented before us in this Bill will lead to a reduction in property tax for some residential properties in County Wexford, while most property owners will see their tax bill remain at the same level. A property valued at €200,000 in 2012 is in the third band and the current standard rate of property tax at €312. Under the new proposed bands, a property valued at €200,000 will be in band 1 and will pay the standard rate of property tax at €90. At first glance, this may look like a significant reduction but when we take into account that a house valued at €200,000 in 2012 is now likely to be valued at more than €300,000, we can see why most people will remain at the same level.

I am concerned Department figures show that approximately 33% of property owners will see an increase of up to €100 on their property tax bill. The bill is providing for the property tax to be charged on all houses after 2013. That means a far greater number of properties will be brought into this tax than are currently in it. With that in mind, I ask the Minister to examine ways of ensuring no one sees an increase in their property tax. By bringing more properties into the tax, the money raised from it will increase anyway and there is scope to avoid people having to pay extra property tax.

This Bill also states a shed, outhouse, garage or other buildings which are usually enjoyed with a residential property in rural Ireland shall be considered to form part of the residential property tax. Yards, garden sheds or other lands, such as gardens or grounds shall be considered to form part of the residential property, up to and including 1 ha, which is 2.2 acres. We are going from valuing a house to a situation in which we are now valuing everything on the site. I have some concerns and few questions.

What is the definition of an outhouse? I know many people who have old outhouses, almost in ruins, on their properties. Will they have to be valued? Does a wooden garden shed have to be taken into account when valuing the property? These are the questions people will likely be asking and we need clear guidelines.

Most of us here would accept that Government spending, in general, is too high and this has become even worse since Covid-19 measures were put in place. When governments are in a habit of spending too much money, the consequences will inevitably fall on the back of the taxpayer, who will be expected to give up an even larger amount of his or her income to help sustain such spending levels. Unfortunately, when the State gets into financial difficulty, the burden of solving the problem is too often placed, via extra taxes, on the ordinary working people. I hope that in recovering from our current difficulties, the first port of call will not be to increase taxes on people.

Instead, the first step should be to conduct a root and branch review of how savings can be made in Government expenditure.

Even in years gone by, when past Governments felt a need to cut back on spending, they targeted the vulnerable and easy targets. The cuts to carers' supports is one example that springs readily to mind. It appears that money is given hand over fist to NGOs and quangos, and there appears to be no end of money available to waste in gross overspending on projects such as the children's hospital. Members of the hospital's board appeared before the Committee of Public Accounts this morning and it seems we cannot be told what the final cost of the children's hospital is due to be as a result of the Department of Health taking the view that commercial sensitivity trumps public interest and accountability. The logic of this defies belief. The State is in the business of giving billions of euro to NGOs or lobby groups whose main function is to campaign to get the Government to spend even more money introducing policy changes to match whatever agenda they want to set or push. It makes no sense whatever, and this type of work should be carried on by Departments.

As we discuss this Bill to raise money via taxes, I would like to get clarity on one matter, which the Minister might address in his closing statement. Section 23 deletes section 15 of the main Act, which means the Revenue Commissioners will not accept self-assessment anymore in respect of properties valued at under €1 million. I am not sure about these self-assessments. Are they now subject to the Revenue Commissioners' compliance regime for other self-assessment taxes? Does that mean self-assessment can now be challenged by the Revenue Commissioners? Do property owners need to get valuations from auctioneers every four years, as one does when valuing properties for stamp duty, probate and so forth? I would appreciate clarification on that.

See this speech in context