Dáil debates

Thursday, 20 October 2011

Other Questions

Household Charge

5:00 pm

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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Question 13: To ask the Minister for the Environment; Community and Local Government if he will bring forward legislation to introduce the household tax; and if he has reconsidered the position he has enunciated in previous statements regarding the threat to impose severe penalties on those who do not pay the tax. [30244/11]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The EU-IMF programme of financial support commits the Government to introduce a property tax from 2012. The programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for them. A property tax would take some time to introduce, in the light of the complex issues involved, including the need for a comprehensive property valuation system. Accordingly, to meet the requirement in the EU-IMF programme, the Government has decided to introduce a flat-rate household charge as an interim measure in 2012. Proposals for a full property tax will be considered by the Government in due course. The legislation to underpin the household charge will contain the precise details of the charge. It will be published and brought before the Oireachtas before the end of the year. Similar to the charge on non-principal private residences, it is intended that the household charge will be administered on a self-assessment basis. It will be a matter for owners of residential property to register and pay the charge by the due date. In the event of non-payment, penalties will apply. Unpaid household charges will remain as a charge against the property concerned.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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When the Minister announced the proposed household tax in August, there was a huge uproar. People said they could not afford it. Therefore, the proposal needs to be reconsidered by the Minister. We have just discussed the issues of mortgage debt, credit debt and the burden on families as they try to stay in their homes. People are facing an austerity package of a minimum of €10 billion - it could be up to €14 billion - in the next three years. As Mr. John FitzGerald of the ESRI has said, it is likely that the tax will increase to €1,400. Therefore, the Minister should be honest with the people. He has said the household tax will be €2 a week, but if it is €1,400, it will be between €20 and €25 a week. That is the austerity the people are facing. I, therefore, ask the Minister to reconsider this proposal, as it is not an option for most. If we are talking about it in the context of household debt, it is clear that an holistic approach has to be taken. The suggestion penalties could be imposed over a period of time is an absolute disgrace. There have been many meetings on this matter in Dublin city. Some 18 meetings have been held in response and people have said they will not pay this tax. Almost 200 people opposed to the imposition of a household tax attended a meeting in Gaoth Dobhair. The Minister should reconsider.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am not surprised that so many people are attending meetings if they are being told by the Deputy and others that the charge will be €1,400.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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That is what Mr. John FitzGerald has said.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not know. He did not hear it from the Minister and neither did the Deputy.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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He knows how much tax the Government will be bringing in in a few years time.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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We will introduce a charge of €100, or €2 a week, in 2012. I do not know from where the €1,400 figure came.

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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We can say he said it if we want.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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If Deputy Joan Collins wants to tell people at public meetings that is how much it will be, I am sure she will draw a crowd. I advise her to proceed on the basis of what is accurate.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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We know it is an accurate reflection of the plans for this charge.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The list of exemptions and waivers from the household charge will include people in receipt of mortgage interest supplement. They will not have to pay it. People living in social housing will also not have to pay it. I am sure the Deputy is telling people at meetings about this. People living in voluntary and co-operative housing, residential property owned by a charity and who have had to vacate their homes to move into nursing homes will not have to pay it. People with a physical infirmity or long-term mental illness will also not have to pay it. There are many exemptions. If the full information is given to people accurately, I am sure their fears will be allayed.

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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Some 1.6 million people will be affected by this tax. It will be a heavy burden.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I wish I did not have to introduce it, but I am being forced to do so by the circumstances in which the country finds itself.

The Dáil adjourned at 5.45 p.m. until 2 p.m. on Tuesday, 25 October 2011.