Cian O'Callaghan (Dublin Bay North, Social Democrats)

I move amendment No. 3:

In page 3, between lines 23 and 24, to insert the following:

“Report into differential rates for owners of multiple properties

3. The Minister shall within six months from the passing of this Act prepare and lay before Dáil Eireann a report on the potential introduction of differential rates of local property tax on residential properties under this Act and the Principal Act where such properties are owned by persons who: (a) own two or less residential properties;

(b) own more than two but less than 20 residential properties;

(c) own more than twenty but less than 50 residential properties;

(d) own more than fifty but less than 100 residential properties;

(e) own more than one hundred but less than 1,000 residential properties;

(f) own more than 1,000 residential properties.”.

This amendment is about broadening and diversifying the tax base but also supporting local government and local democracy. The delivery of public services at a local level requires good, solid funding streams. That has always been the position of the Social Democrats. It has never changed and it will not change. We cannot have strong local government and strong public services without having mechanisms and streams for financing them.

Ireland has one of the most strongly centralised forms of government in the western world, with the least power devolved to local authorities. We often talk in this House about the weakness of public services and how they can be improved and strengthened. One of the best ways of strengthening public services is through empowering local government, and that cannot be done without strong financing streams. The OECD's organisational autonomy country ranking chart has Ireland at third from the bottom, with only Malta and Belarus performing worse than us among OECD countries. There is no doubt this ranking is linked to issues around how we finance local government. It is a key factor. If we want better public services delivered at a local level, including affordable, high-quality childcare, improvements in housing and myriad other services, changes are best made at local government level. I make that overall point in case anyone in the Chamber or watching the debate is in any doubt whatsoever about our position.

The amendment seeks a report within six months of the passing of the Act on the potential for broadening the tax base by increasing the local property tax for owners of multiple properties. We are talking about landlords, including institutional landlords, who own a large number of properties. The rationale behind the amendment is that there is a difference between people who are paying local property tax on their home and those paying it on multiple properties they own for investment purposes. There is a strong rationale for considering higher rates for those who own multiple properties as investments. The amendment is just asking the Minister to provide a report on the potential introduction of differential rates. It at least merits consideration.

Earlier, the Minister referenced, in defence of his arguments, the report of the Commission on Taxation and Welfare. My amendment simply proposes that he provide a report that would look in detail into a recommendation of the commission. There is no point in the commission making a lot of recommendations if we in this House do not look to see whether we can implement them. It is important not just to defend income streams for local authorities but also to look at how they can be broadened in equitable ways that do not place the burden on lower income households and ordinary homeowners. This proposal seeks to do that. I ask the Government to strongly consider it.

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