Pearse Doherty (Donegal, Sinn Fein)
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89. To ask the Minister for Finance if he and his Department will confirm a date for the introduction of a vacant homes tax; and if he will make a statement on the matter. [62650/21]

Mairead Farrell (Galway West, Sinn Fein)
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We all know that the State is in the grips of a housing emergency. There are policies that could change the dynamic and provide solutions to the housing needs our people face. The Government's Housing for All plan chose to kick the can of the vacant property tax down the road for yet another year. Will the Minister confirm a date for the introduction of a vacant homes tax?

Paschal Donohoe (Dublin Central, Fine Gael)
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I want to begin by apologising to the Acting Chairman and the Deputies for the fact that I will need to leave early because I have an engagement at the European Council this evening. I have already conveyed apologies to Deputy Pearse Doherty and Mairéad Farrell, and I thank the Minister of State, Deputy Fleming, who will take over from me in a few moments.

I will quickly answer the question put to me by Deputy Farrell. The Government's Housing for All strategy includes an action from my Department to collect data on vacancy with a view to introducing a vacant property tax. My expectation is that we will receive information relevant to the design of the vacant property tax in the first quarter of next year and I anticipate, in the aftermath of that, I will be able to bring proposals to Government and the Dáil.

The Finance (Local Property Tax) (Amendment) Act has enabled Revenue to collect certain information on vacant properties in the local property tax, LPT, return forms submitted by residential property owners last month in respect of the new LPT valuation period from 2022 to 2025. This information, together with information from other available sources, will be used to assess the merits and impact of introducing the design of a vacant property tax.

Before introducing the tax, it is important to have a sound understanding of the quantity, locations and characteristics of long-term vacant properties. It is also essential to identify the reasons for vacancy, and whether this is long term or short term in nature. There may be genuine and acceptable reasons for vacancy, such as refurbishment work, the temporary absence of the owner for medical reasons or pending the grant of probate for a deceased person's estate. Appropriate exemptions from any charge will have to be considered in addition to acceptable periods of vacancy.

Mairead Farrell (Galway West, Sinn Fein)
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We need this urgently. Since 2016, Sinn Féin has called for the introduction of a vacant homes tax as another lever to increase supply, end the scourge of dereliction and put vacant homes back into use. In June 2017, my colleague, Deputy Ó Broin, called on the Government to introduce a vacant property tax in budget 2018, a budget that was negotiated between Fianna Fáil and Fine Gael. That was four years ago. No vacant homes tax has been introduced in any year since. The Government published its Housing for All plan on 2 September without any firm commitments on introducing a vacant property tax to penalise those who allow residential properties to remain idle and unused. What has been committed to is a data collection exercise. Will the Minister confirm that he rejects the conclusions of the 2018 Indecon report that was the grounds for the Government's previous rejection of a vacant homes tax? If he plans to introduce this tax, will he spell out its design?

Paschal Donohoe (Dublin Central, Fine Gael)
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The commitment to a vacant property tax is clear in Housing for All. The 2018 Indecon report reflected the housing market as it stood then but we are now in a situation where we need to make even more urgent use of properties and land available for housing and accommodation purposes. That is why the Housing for All strategy contains a different commitment to the introduction of a vacant property tax.

That said, the vacant property tax is only one of a number of measures we will need to implement to make progress in tackling the housing needs in our country. We are making progress. The construction of more than 30,000 homes had commenced by October 2021. That is an increase of 49% on the previous year. That is a signal that our strategy is working.

Mairead Farrell (Galway West, Sinn Fein)
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In a note to the Joint Committee on Housing, Local Government and Heritage in September, the Department of Finance cited analysis on vacant dwellings by GeoDirectory. In its quarter 2 report for 2021, GeoDirectory found that more than 92,000 homes, or 4.5% of the housing stock, lay vacant in June this year. Recent research suggests we have the tenth highest vacancy rate in the world. It is a national scandal. Why has the Government not introduced a vacant property tax in each of the past five years? Will the Minister commit to doing so as soon as possible? I know he has said he will give us further details in the future but we need this as soon as possible.

I also draw the Minister's attention to recent stories in the Business Post, which found the Minister and the Department massaged the facts regarding rates of vacancy to undermine the proposition of a vacant homes tax. Most recently, it was reported that briefing notes provided to the Minister for Finance cherry-picked data relating to vacancy rates, omitting documented evidence of high residential vacancy rates. That is completely unacceptable. Does the Minister agree? Will he commit to expediting the introduction of a vacant homes tax as soon as possible?

Paschal Donohoe (Dublin Central, Fine Gael)
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I completely reject any claims that the information and guidance my officials prepare for me is in any way massaged or in any way excludes important information that I need to make decisions. I receive full, impartial and comprehensive input and advice from my officials on this and every other matter. The information notes I receive and the evaluations that are given to me are part of how that guidance is provided to me. I have had ongoing engagement with my officials on this matter and they have provided me with comprehensive briefings on this and other issues. I repeat that I reject any claim that the information provided to me is in any way massaged or presents anything less than a full picture of this issue.

I will say again that the impact we are making at the moment, although we know we need to do more, is that 31,000 homes were commenced over the past 12 months. I have outlined to the House how we will deal with this issue and make the design choices on the vacant property tax.