John Halligan (Waterford, Independent)
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To ask the Minister for Environment, Community and Local Government in view of the fact that local authorities will be liable for the property tax with regards to their housing stock, the way he intends local authorities to deal with this; if he will be or has already issued any communication to local authorities in this regard; and his views on whether council tenants should be asked to pay for this. [5483/13]

Thomas Pringle (Donegal South West, Independent)
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To ask the Minister for Environment, Community and Local Government if view of the fact that local authorities will be liable for the property tax with regards to their housing stock, the way he intends local authorities to deal with this; if he will be or has already issued any communication to local authorities in this regard; and his views on whether council tenants should be asked to pay for this. [5546/13]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Minister for Environment, Community and Local Government in view of the fact that local authorities will be liable for the property tax with regards to their housing stock, the way he intends local authorities to deal with this; if he will be or has already issued any communication to local authorities in this regard; and his views on whether council tenants should be asked to pay for this. [5482/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 135, 137 and 146 together.

The introduction of the local property tax will provide a more sustainable funding model for local government, will devolve greater responsibility for financial decisions to local level, and will help renew the relationship between the citizen and his or her local authority. In introducing the Act, the Government has been keen to ensure that equity is seen to be preserved and that all sectors of society are required to make a fair and equitable local property tax contribution. In that regard, the relationship between the value of a residential property and the amount of the local property tax liability is important, as is liability for certain categories of social housing.

The Finance (Local Property Tax) Act 2012 sets out the position concerning residential properties and liability for the local property tax. Under the Act local authorities and approved housing bodies are, in general, liable for residential properties under their ownership. The existing arrangements for determining local authority rents are currently under review, under the relevant provisions of Housing (Miscellaneous Provisions) Act 2009, in terms of providing for new rent schemes in 2014, and I anticipate that these new schemes will provide for an appropriate contribution to be made by tenants of liable social housing properties.

Section 7 of the Act provides that owners of residential properties which are charities or which are bodies established by statute are not liable for the tax provided that such properties are used solely or primarily to provide special needs accommodation. Certain accommodation provided by local authorities and by approved housing bodies would therefore be exempt from the local property tax.

Consideration is being given to the mechanisms for the pay over of social housing related local property tax liabilities, and associated issues are receiving attention, informed by ongoing contact with the local government sector and approved housing bodies. I am working with the Minister for Finance, Deputy Noonan, with a view to implementing a set of arrangements that are effective, efficient and equitable. Local authorities and approved housing bodies will be informed of these arrangements in due course.

John Halligan (Waterford, Independent)
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I will be as brief as I can. There are a number of Deputies who want to contribute.

There is confusion and concern here. The confusion is that, although I am opposed to household charges of any form, when the household charge and the property tax were introduced, the indications were that these would not be placed upon those living in local authority houses.

The concern is that this may very well no longer be the case. It could be sneaked in under the guise that each local authority will be lumped with a bill that would be the equivalent of the property tax rate on its local authority houses. All that will happen is that it could very well force local authorities to increase rent on hundreds of thousands of already struggling families living in local authority houses, many of whom are unemployed or on low incomes and not in a position to pay any more to anybody. We need some clarity and we need to know the certain categories that will be exempt. Can the Minister state categorically that somebody living in a local authority house will not pay the property tax and that it cannot be imposed on them in another form such as rent increase or otherwise by the local authority?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I am not in a position to clarify a number of those issues today because they form part of the finance Bill. The regulations for the implementation of this tax will form part of that Bill in coming weeks when it will become clear. However, there is an issue of equity here. Some people in local authority estates, perhaps in tenant purchase schemes, are paying a contribution under the household charge or the property tax while somebody paying rent to a local authority is paying nothing in terms of making a contribution to the provision of services in his or her estate. There is an issue here that needs to be addressed and how it will happen is a matter that needs to be worked out between the Minister for Finance and the Department of the Environment, Community and Local Government in the context of the finance Bill.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The chairperson of the Dublin City Council finance committee and a number of other councillors have confirmed that there is no doubt that if the property tax is imposed on local authority housing in Dublin City Council, it will be passed on in the form of rent to local authority tenants. The same report was given by council officials in Dún Laoghaire-Rathdown County Council at pre-budget meetings and was, I believe, confirmed again at a meeting last night. We need clarity on the issue. If rent increases are to be imposed on local authority tenants, it makes a mockery of the claim that this is a property tax as the Minister suggested - it is not. It will mean an extra burden on people who do not own property.

Can the Minister confirm that a special committee has been established between the Department of the Environment, Community and Local Government, the Revenue Commissioners, the Department of Finance and the County and City Managers Association? What is the status of discussions and deliberations among that group on this issue as to whether the full cost of the property tax will be imposed on local authority tenants' rents and what that burden is likely to be?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Some 130,000 social housing units provided by local authorities and 27,000 units provided by approved housing bodies could become part of the category the Deputy mentions in the context of the local property tax. A steering group made up of all the Departments and agencies he mentioned is considering this issue and will report to the Minister for Finance in the context of the finance Bill.

Michael Kitt (Galway East, Fianna Fail)
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I will call three further speakers, Deputies Catherine Murphy, Dessie Ellis and Clare Daly. I ask them to be brief.

Catherine Murphy (Kildare North, Independent)
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In terms of social landlords, I have talking to a principal from the Iveagh Trust who is very concerned about the viability of housing in that housing stock. In my area we have Respond, Cluid and Circle. Increasingly housing will be administered by social landlords. The availability of housing is really bad at the moment and if we shrink that and put that housing stock at risk, it will have the very serious knock-on effect that the State will need to pick up on the other side. This needs the most careful consideration. I reiterate the point Deputy Boyd Barrett made that it clearly demonstrates that people of no property - they have no property if they are renting houses - will be paying a property tax. It is not a property tax and should be called what it is.

Dessie Ellis (Dublin North West, Sinn Fein)
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Social housing is provided by the local authorities for people on low income who cannot afford to buy their own home. It is now proposed to increase the rent paid by these people. Given people are already struggling and will not be able to pay, the local authorities will have to meet this cost from their funding, leaving them with less funding for everything else, including maintenance. That the Minister is going after people in local authority housing is an outrage. It can be argued that these people are different, have different lifestyles and in many cases do not have the same opportunities as others. Many of them are low paid, unemployed or are senior citizens. Given the amount which the local authorities and approved housing bodies are required to find is an additional €25 million and €3.5 million, respectively, these people will be asked to pay an additional €4, €5 or €6.

Clare Daly (Dublin North, Socialist Party)
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There is a contradiction in what the Minister said in terms of his statement that this so-called misnamed property tax is to provide a secure funding base for local authorities and his proposal to bill local authorities for 130,000 units. The dogs in the street know that cost will be passed on to tenants. Many local authorities have already done so. Against the backdrop of massive rent arrears, how will this benefit local services at local authority level? The Minister said that tenants of local authority houses do not contribute to services in their areas. Tenants in many areas pay management fees and taxes and should be entitled to the same services as everybody else.

Deputies:

Hear, hear.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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This is ironic given the calls by some Members earlier for support for the small business sector, in particular Deputy Boyd Barrett who called for some respite in the differentiation of rates in town centres. No one has yet suggested how all sectors of society could be asked to make an equitable contribution to same.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Make the big multinationals pay.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The issues raised by Deputies, in relation in particular to the approved housing bodies, are important and will be clarified in the context of the Finance Bill which the Minister for Finance will shortly publish.