Dáil debates

Wednesday, 1 May 2013

Other Questions

Property Taxation Exemptions

2:15 pm

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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7. To ask the Minister for Environment, Community and Local Government the reason some unfinished estates were excluded from liability for the property tax and some in similar conditions were not. [20493/13]

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 2012. The survey was carried out over the course of summer 2012 by my Department in conjunction with local authorities and the housing agency.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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The Minister of State referred to a survey carried out by councils. I understand housing managers in Fingal County Council and Dublin City Council were not consulted. Who carried out these surveys and where did they get their information? There are nearly 100 unfinished estates in Dublin alone but Priory Hall is the only exempted development. Smaller counties have more exemptions than the entirety of Dublin. Something is not adding up. I invite the Minister of State to visit the unfinished Heathfield estate in my own area. Seven estates remain unfinished in my area. In Heathfield, the roads are unfinished, some of the houses are unoccupied and the underground services and boundaries have not yet been sorted out. I cannot fathom how somebody could decide these houses should not be exempt. If they were exempt from the household charge why are they not exempt from the property tax?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I have explained that the lists were drawn up by the local authorities, all of which received a circular on the matter. While I do not know whether the housing managers saw the circular, some competent person would have been tasked with drawing up the lists. Every local authority designates an official to deal with unfinished housing estates and the public can engage with this individual if they have issues with unfinished estates. I presume Dublin City Council and Fingal County Council have designated people to carry out this role.

Deputy Ellis referred to an estate that he believes should have been on the list and described the condition of the estate. I am sure he has seen the list contained in the legislation which sets out the various criteria used to designate estates. It is a transparent process. We asked the local authorities to draw up lists in accordance with the guidelines they were given.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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There is limited consistency in the designation of estates. The Minister of State indicated that the survey was carried out by the Department in conjunction with local authorities. Parts of the Rockview estate in Portlaoise lack footpaths but the property tax is supposed to be used to provide footpaths and lighting, which comes from the roads budget in every county council with which I am familiar. It is a question of ring-fencing money. Some €150 million has been taken from the car tax fund this year and moved to the loan account to pay off debts.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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I was contacted in regard to four unfinished estates, namely, Bridgemeadow in Enniscorthy and Cluain Aoibhinn, Riverchapel and Aylesbridge in the Riverchapel area. These estates lack open spaces or footpaths and contain a number of unfinished buildings. When I asked the council why they were not included in the list of exemptions I was told that the original survey of estates was completed by the Department of the Environment, Community and Local Government, which then compiled a list of what it deemed to be unfinished estates around the country. The council stated that it has tried to include additional estates it knows to be unfinished but the Department refused to add them to its list. It thus has estates which are not deemed to be unfinished and, therefore, cannot be exempted from the property tax. The Minister of State says the process is transparent but these estates meet the criteria. I do not understand why they cannot be included on the list.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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The reality is that the Department has moved the goalposts. It is not logical to suggest that local authorities across the country have experienced a dramatic improvement in the completion rates for these estates. The Minister of State referred to estates which are in seriously problematic condition. Each of us can identify developments in our areas which meet these criteria and where residents are left without footpaths, lighting and basic amenities. They now face the insulting idea of being charged a property tax for local services they do not get. In many cases they are also being charged management fees. There appears to be a discrepancy between what local authorities are telling us and what we are hearing from the Department. Both sides cannot be true.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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A number of the Deputies' questions related to finances. Deputy Stanley will be aware that funds were made available for the safety initiative. These funds have not been fully drawn down and they remain available to local authorities.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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I welcome that.

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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Local authorities did not have their money reduced this year. From next year onwards, 80% of the property tax will be retained by the relevant local authority and the remainder will be redistributed fairly. The money will be used for the purposes that Members have suggested, such as completing roads and footpaths, as well as for other local authority needs.

With regard to the argument by Deputies Wallace and Daly that certain estates should have been included, my Department was in contact with local authorities in February, before the list was drawn up, to ensure that the inclusion of estates was finalised by local authorities. They were to identify the estates that fitted the categories concerned.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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What happened in Wexford if it is not getting a break? What went wrong?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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We cannot second guess local authorities.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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Why is there only one estate in Dublin?

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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Criteria were drawn up on a national basis but we asked the local authorities to identify which estates fitted the various categories, including the seriously problematic category that was included in the exemption from property tax by the Department of Finance.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Can we find out who signed off on the list?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I stated at the outset that we had six minutes for each question. We have spent eight minutes dealing with this question. It is unfair to other Deputies.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not know what is happening in Wexford if it is not getting a break. I hope it will do better in the championship.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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The Wexford youths won last night.