Dáil debates

Thursday, 8 March 2012

Other Questions

Local Authority Charges

5:00 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Question 7: To ask the Minister for the Environment; Community and Local Government the number of households that have registered for the household charge to date; the total revenue raised; his plans to sanction those who do not register; if he will make up any shortfall to the Local Government Fund that arises from a failure to achieve the estimated €160 million in revenue; and if he will make a statement on the matter. [13212/12]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Local Government (Household Charge) Act 2011 and the Local Government (Household Charge) Regulations 2012 provide the legislative basis for the household charge. Under the legislation, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge by 31 March 2012, unless otherwise exempted or entitled to claim a waiver. The Local Government Management Agency, LGMA, is administering the household charge system on a shared service-agency basis for all county and city councils. I understand, from data provided by the LGMA, that as of 7 March 2012, a total of 200,101 properties have been registered for payment of the household charge. This equates to income of €20 million.

It is estimated that 1.6 million residential properties are liable to the household charge. If collected in full, the charge has the potential to raise €160 million annually. As an incentive to pay the self-assessment charge, late payment fees and late payment interest apply and 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. I will keep the income being generated from the household charge under constant review and local authorities and I will take any necessary measures, as appropriate, in regard to compliance with the legislation.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The Minister said 1.6 million households are liable for the charge but, up to the end of February, only 128,000 householders had paid. He cannot operate on the revenue estimate of €160 million. Will local authorities be given funding by the Department to address the shortfall? The household charge is not an additional income stream for local authorities. It replaces the local government fund, under which €164 million was available last year. The figures do not add up.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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There is no right to a supplementary question unless a Deputy is given permission.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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If the Ceann Comhairle had acknowledged me, I would have put my hand up.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I call the Minister.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The household charge will go into the local government fund and will be disbursed among local authorities. If the estimated amount is not collected, the local authorities will have to examine their service plans for the remainder of the year. The Government has no additional money. If the €160 million is not paid into this fund, there will be an impact on services and local authority staff need to realise that.

The penalties for late payment are proportionate to the level of the charge and are similar to the provisions that apply under Revenue legislation in respect of the late filing and payment of certain taxes. Late payment fees and interest will only apply if the household charge is not paid in respect of the liability date and the property that is liable. That will act as a strong incentive to pay the self-assessment charge on time.

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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I refer to a practical matter relating to the charge. People who are presenting at local authority offices are being refused when they offer cash to pay the charge. They are sent away to get a postal order. In particular, I have encountered elderly people who do not have cheque books or credit or debit cards but who want to have their affairs in order. Will the Minister direct all local authorities to accept cash? Cash is the primary mode of payment in this country. The same issue applies to the non-principal private residence charge.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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The Minister said that the penalties will act as a disincentive and will encourage people to register but with 75% of the time elapsed before his deadline and only 12% of households registered, how does he intend to square that circle when his Department was not capable of even delivering to every household? How does he intend to pursue people with late interest payments given the State would have to take them to court and the courts system is in crisis?

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I would like the Minister to clarify how he proposes to follow up cases of non-payment. It has been mentioned that a system of attachment orders would be introduced, which would result in money being take from people's wages or social welfare payments.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Has the Deputy a question?

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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The Minister for Justice and Equality said that he was considering bringing forward legislation to do this but the Tánaiste and Minister for Foreign Affairs and Trade and the Taoiseach both said that would not be the case.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are running out of time. Will the Deputy put a question?

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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Will non-payment be pursued under the Fines Act 2010? Will this be the means by which the Minister will chase people to pay this tax?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The tax is legally liable. It is the law of the land and the case of any person who is taken to court in breach of the law and how the payments are collected are matters for the Minister for Justice and Equality under the Fines Act 2010.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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Is that the method the Minister will pursue?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I will not develop any method. My methodology is to ensure people understand the law and understand they are liable for this charge and have to pay it. The late payment interest will be 1% per month and late payment fees will apply in the case of a household charge. If the Deputy is advocating that people should not pay, he is telling them that they should pay late payment fees and mount up a bill on top of the €100 charge.

With regard to Deputy Daly's question, people do not pay until they have to and they will have to pay by the end of this month.

With regard to Deputy Mulherin's question, I have advocated to the local authorities that they take legal tender. I am developing a system with An Post whereby it will supply the household charge forms. People will have access to them in the next few days, hopefully next week, and can pay through that methodology, particularly the elderly community in rural areas.