Dáil debates

Wednesday, 1 May 2013

Ceisteanna - Questions - Priority Questions

Property Taxation Exemptions

1:35 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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1. To ask the Minister for Environment, Community and Local Government if he will detail the criteria used to set out the list of estates eligible for exemptions under the local property tax; and if he will make a statement on the matter. [20595/13]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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An exemption from the local property tax applies to developments listed in the schedule to the Finance (Local Property Tax) Regulations 2013. The list of unfinished housing developments eligible for the exemption was compiled by local authorities utilising the categorisation employed for the purposes of the national housing survey of 2012. The survey was carried out over the course of the summer of 2012 by the Department in conjunction with local authorities and the Housing Agency.

The categorisation methodology for the survey was different from that used in 2011 which provided the basis for the waiver from the household charge. This earlier categorisation related largely to the level of on-site activity at the time the 2011 survey was carried out and had less to do with the physical character of a development. The 2012 survey was based purely and objectively on the actual state of completion of a development, and established there were 1,700 unfinished developments, with 1,100 of them deemed to be in a seriously problematic condition. This represents a 37% reduction in unfinished developments since 2010. Only developments deemed by local authorities to be in a seriously problematic condition, regardless of whether a developer was on or off site, were included in the local property tax regulations. For the purposes of preparing the final list of developments to which the exemption from the local property tax would apply, local authorities were asked by the Department to confirm or update the then existing list of estates in a seriously problematic condition, as appropriate.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Will the Minister of State confirm whether it is correct to state that where local authorities carried out the instructions and inspections, they were instructed to do so by the Department and to take into account certain criteria when devising the lists? Obviously this was the case because in my county, 26 estates were exempt from the household charge but only one estate was exempt when it came to the local property tax. Does the Minister of State have faith in the standards and requirements demanded by local authorities on a regular basis before taking charge of local authority estates? Does she support the mechanisms and procedures involved in the process? If she does, it totally flies in the face of the policy she and the Department employed lately when devising the secondary list of exemptions. Does she also believe it was totally unfair and unjust for the Department not to employ any appeals mechanism once the list was completed?

Does the Minister of State believe it was opportunistic, to say the least, of her colleague and senior Minister to give a candidate in the Meath East by-election the impression of the distinct possibility that any representations might result in an appeal, and by association give the impression in some way or another that certain estates in the county might see favour in being taken from the list? This does not take from the point I made in the first instance. Any candidate, whether a representative of a local authority or otherwise, was quite entitled to make an appeal. The Department brought out a system which was unjust and unfair and did not allow for appeals. To return to the kernel of the point I am making, if the Minister of State agrees with the procedures and the mechanism by which local authorities take estates in charge, and I am sure she does as the Minister of State with responsibility in this regard, will she admit it flies totally in the face of the policy and criteria which she directed local authority staff to use when devising the list?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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The list was drawn up by the local authorities then transferred to the Department in accordance with-----

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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The criteria-----

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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-----the national housing survey guidelines. It is only estates in a serious problematic condition or which have parts in a serious problematic condition which are exempted in the legislation from the Department of Finance on the property tax in this category. There are other exemptions. As Deputy Cowen knows, an estate being taken in charge involves a totally different test.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Does the Minister of State agree with it?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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The Deputy asked me my view on the taking in charge process. Thousands of estates throughout the country have not been taken in charge, and some have been in existence for 30 years. They were not part of the household survey upon which this exemption is based.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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There are different standards for different schemes. That is fine. It explains it.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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It is an entirely different system. Taking in charge is a serious issue and one we want to address with local authorities.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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They do it regularly.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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It is a different category from that of problematic conditions in an unfinished estate, which was the category laid down in the legislation by the Department of Finance. I am sure the Minister, Deputy Hogan, can answer for himself, but he tells me he did not say what the Deputy suggested he did with regard to the Meath East by-election. Deputy Cowen asked whether there should be a waiver system. This would be a matter for the Department of Finance, which established the property tax and brought forward the legislation to Cabinet for agreement by the Government.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I have a related question, and I would like to use this opportunity to ask the Minister of State to consider extending the period of time by which the forms must be returned by post. I believe the deadline is next week. Many queries and questions are emanating from members of the public to many representatives in the House and I ask the Minister of State to consider extending the deadline.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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It is not a matter for me. It is a matter for the Department of Finance.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Will the Minister of State pass on our-----

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I have heard the Deputy's request but I cannot give him an answer.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Will the Minister of State pass on my request?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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We will pass on the Deputy's best wishes.