Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Environment, Community and Local Government his views on providing individual local authorities powers to set property tax rates; and if he will make a statement on the matter. [46303/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The development of a system of local government funding which is fair, stable, effective and brings greater local responsibility in financial matters is an essential feature of the reform programme for local government. Consistent with the overall local government reform process and as stated in chapter 10 of the action plan for effective local government entitled, Putting People First, the Government is committed to the introduction of a local property tax, with provision for an appropriate element of local authority financial responsibility to underpin local democratic decision-making. Beyond that principle, no decisions have been taken and it would not be appropriate to discuss such matters prior to the Government's consideration of the matter.

I can state, however, that the local property tax will improve the governance of local authorities by strengthening their accountability to local taxpayers. A local property tax will alter the relationship between the citizen and his or her local authority in a way that will be altogether beneficial for good governance. The action plan noted that if local elected members have relatively little responsibility for raising revenue, their rigorousness in prioritising its allocation, ensuring its efficient use and stewardship and overseeing the performance and management of local authority operations generally is likely to be diminished.

An independently chaired interdepartmental expert group was established to consider the structures and modalities of a local property tax to replace the household charge. The group's terms of reference were to consider the design of an equitable tax to be approved by the Government to replace the household charge, which would be informed by previous work and international experience. The group submitted its report to me and proposals will be brought to the Government as soon as possible. I do not propose to comment on the content of the expert group's report at this point, pending the Government's consideration of the report and the associated issues. Then it will be a matter for the Government to decide on the exact details of implementation, including considerations related to local determination of the value of the property tax, taking into account the modalities involved. The Government has decided that the local property tax will be collected and administered by the Revenue Commissioners.

Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister has initiated the discussion by virtue of what he had to say last week and what is within the local government action plan, Putting People First, relating to local property taxes. This is against the backdrop of the Thornhill report. The Minister commissioned the expertise of Mr. Thornhill to make recommendations to him.

The Minister has had the report since last May or June; he is heading into his fifth or sixth month with it. The Taoiseach tells us that the implementation of a property tax has not yet been discussed at Cabinet and that the only decisions made were that it would be implemented in the budget and collected by the Revenue Commissioners, and that it would come into effect next June or July. Will the Minister not share this report with someone, at the least those in the Cabinet? It cannot be that scary, although I realise the Minister has done some scary things in the past 12 months. Surely he could sit down and read the book to someone to give us an indication of where we are going with regard to property tax. The vagueness of it only adds to the aspirational feel of the whole document as produced last week. The Minister has opened the debate but has not produced the Thornhill report. I call on him to produce it immediately, considering he has had it for so long and is sharing it with no one. It is about time we all got a look at it, at least to establish what is being discussed or what might be discussed and ultimately what might be coming down the tracks. Let us compare it with what the Minister has referred to in the report.

Does the Minister now envisage local authorities augmenting the property tax the Government will bring in for their benefit in respect of services they might provide in future? If so, will that be collected by the Revenue Commissioners as well? Will the system of collection be enforced in the same manner in which the Revenue Commissioners enforce other types of collection?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Deputy Cowen is well aware that the issue of a property tax was negotiated by his party in November and December 2010 and that it was included as part of the memorandum of understanding. I say as much just in case Deputy Cowen has forgotten.

Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister can remind me all he wishes.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Thornhill report was to establish how we could implement the decision made by Deputy Cowen's party in government. This will be considered by the Government in the context of the budget. I have stated as much on several occasions. The details of the property tax and its implementation will be outlined in the Budget Statement.

Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Will the Minister answer a specific question? When did the Minister get the Thornhill report? Has he read it? When will he share it with anyone in his party or the Government? Will it take a meeting of half an hour before 5 December to decide on it? Is that why Thornhill put the report on the Minister's desk? Is it envisaged that there will be a wide-ranging debate involving more of the populace to arrive at a decision which might achieve the desired result of having the support of the majority of the people?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Deputy Cowen cannot have it every way. Fianna Fáil was jumping up and down when some of the budgetary details went out prematurely from my office in February 1995 and I resigned. A great deal of information has gone out since and nobody resigned. I will not fall into the situation of detailing what is contained in the budget to the Deputy or anyone else in this House in advance of the Minister for Finance making his Budget Statement. What will form part of that is the Thornhill report, which will go towards informing the Minister for Finance and the Government on the final decisions it has to make on implementation.

Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Can the Minister answer the question? Is what he proposes here augmenting the property tax?