Niall Collins (Limerick, Fianna Fail)
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Question 1: To ask the Minister for the Environment, Community and Local Government if he intends to make up any shortfall that may emerge in the local Government fund between the estimated €160 million due to be collected in the household charge and the €164 million allocated by the Exchequer in 2011; and if he will make a statement on the matter. [5951/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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As part of the efforts to close the gap between income and expenditure in the public finances, the 2012 Exchequer allocation to local government was reduced in budget 2012 by €164 million compared to 2011. The introduction of the household charge in 2012 is therefore timely to allow local authorities to have the necessary resources to deliver services to their communities at close to existing levels in the coming year.

It is estimated that there are some 1.6 million residential properties potentially liable to the household charge. As such, if collected in full, the household charge has the potential to raise €160 million annually. The household charge is framed on a self assessment basis at a point in time. It is a matter for those who own residential property liable to the charge to declare this and pay the charge by the due date, 31 March 2012. As an incentive to pay the self assessment charge, late payment fees and late payment interest apply, and any amounts due and unpaid remain as a charge against the property concerned. Such amounts will have to be discharged in the event of the sale or transfer of the property concerned.

Over 68,000 properties have registered to pay the household charge from 1 to 31 January 2012. This represents some €6.8 million. The large number of people paying the charge is a clear indication of compliance with the legislation and an acceptance that the household charge is necessary to fund vital local services in our communities.

Motor tax is also a source of funding to the local government fund. I am concerned at the high level of off-the-road vehicle declarations being made, and am conscious of the need to tighten the current system of declaring vehicles off the road. I intend to bring forward legislative proposals in the near future on this matter.

I will be keeping the income being generated from the household charge under constant review and I and local authorities will take any necessary measures, as appropriate, in regard to compliance with the legislation.

Niall Collins (Limerick, Fianna Fail)
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As of the end of January, about 4% of households had paid the household charge and we are one third of the way through the payment period. Concerns are being expressed by local authorities that not all the money targeted for collection will materialise. In his reply, the Minister said that "if collected in full, the household charge has the potential to raise €160 million annually". What measures can he take to plug the shortfall for local authorities, if there is one?

As regards exemptions and waivers, what is the process for adding unfinished housing estates to the schedule of estates already published on the website? Elected representatives throughout the country, including myself, have been contacted by people to say that their estates have not been included in the schedule of unfinished estates.

Some concern has been expressed about the household charge form. It has been brought to my attention that it does not appear to be like other normal, official Government forms. There is no harp or departmental name on it. It has been queried as to whether making a cheque or money order payable to "household charge" is a legal entity for the receipt of payments. Is there a technicality concerning that?

With regard to the receipt of payments by local authorities, if a person pays in cash they will receive a receipt, but if they pay by cheque I understand that the local authority merely takes the cheque and forwards it to the central processing unit. If the Minister fails to collect the target of €160 million, how does he intend to compensate local authorities which have gone through their budgeting process on foot of that?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It is a hypothetical situation. The collection date for the charge is 31 March 2012. In line with the experience of the second home charge, approximately 4% or 5% were registered at the same time in the three-month registration period for that charge. We are not unduly concerned because people pay at the last minute in most cases because they have the use of that money for a longer period of time. They do not have to pay until 31 March and no penalties apply until after that. We will examine the situation and receive the final figures for the collection process at the end of March.

People should receive a receipt and local authorities should make offices available where they can take the money and give receipts, as set out in the legislation. I asked the County and City Managers Association to co-operate by taking in cash where there are motor tax offices, where receipts can be provided for the money taken.

Regarding unfinished estates, the categories are clearly defined in the legislation, category 3 and category 4. In general, these are not estates taken in charge by the local authority. They have been categorised by local authorities in conjunction with the Department.

Niall Collins (Limerick, Fianna Fail)
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Is there a process to add an estate that is not included?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The schedule has been laid down but I am sure any Deputy can make a case to the county manager. Ultimately, the county and city managers are responsible for the care and management of the collection of the charge. It can be considered if the estates are deemed to have been omitted in error.

Niall Collins (Limerick, Fianna Fail)
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What is the process for making an application to the local authority?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The strict letter of the law is that estates are liable for payment if they have not been included in the schedule outlined in legislation. Ultimately, like any scheme, if the Deputy makes a strong case to the local manager, it will be examined to see if a genuine mistake has been made.

Niall Collins (Limerick, Fianna Fail)
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Can the schedule be added to?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The care and management of the scheme is in the charge of the local authority and the manager is in charge of that authority.