Séamus McGrath (Cork South-Central, Fianna Fail)
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10. To ask the Minister for Finance the percentage number of households that opted to defer payment of the local property tax in the years 2023, 2024 and 2025; and if he will consider reducing further the interest rate penalty on the amount accrued-deferred. [16042/25]

Séamus McGrath (Cork South-Central, Fianna Fail)
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I ask the Minister to outline the percentage of households that opted to defer payment of the local property tax in the years 2023, 2034 and 2025 and if he will consider a further reduction in the penalty on the amount that has been deferred.

Paschal Donohoe (Dublin Central, Fine Gael)
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Property owners who are experiencing financial difficulty may avail of a wide range of flexible payment options in respect of current local property tax, LPT, liabilities and for any previous years. To answer the Deputy's question on those accessing it, the number is quite low: 0.6% of all taxpayers are accessing it across the years 2023, 2024 and 2025. Ahead of the revaluation in 2021, I reduced the interest that applied to deferred LPT from 4% to 3%.

Given I reduced the rate last time, I do not propose do so again. What I have done is increased the income thresholds at which deferrals can be accessed. We have seen income growth in our economy, despite the cost-of-living pressures many have faced, and I want to ensure the ability of hard-pressed homeowners to access those deferral options is maintained. The evidence is the vast majority of people look to pay their LPT bill on time. I know it is a big bill but those who find it difficult to pay upfront can spread the payment across the year. The number is low but we are looking to deal with the issue the Deputy raised by increasing the income thresholds instead.

Séamus McGrath (Cork South-Central, Fianna Fail)
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I thank the Minister for that information. I accept 0.6% is a low figure. That suggests the cost to the State would not be significant if there were to be a further reduction in the interest penalty. I acknowledge there was a change in 2021 from 4% to 3%.

One of the flaws with the LPT is it is not based on a household's income; it is based purely on evaluation of the property. We know there will be properties in certain locations with high value but very often those households have a low income. It may be a household reliant on the State pension. It is unfair to charge a penalty of 3% to those households if they opt to defer the property tax based on income threshold grounds or hardship grounds. We should consider a reduction. I note in the changes announced that local authorities will have the option of increasing the property tax by up to 25%. That will allow scope for these households to be exposed to even greater liability. I ask the Minister to consider, in time, looking at the penalty again.

Paschal Donohoe (Dublin Central, Fine Gael)
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To bring to life the figures and move them beyond percentages, the overall number of properties that accessed the deferral option was between 11,800 and 12,500, so it is indeed a low number.

The Deputy made a point about the ability for LPT to be varied upward by 25%. One of the things I have learned from watching how this tax operates is this. I believe 25 out of 30 local authorities have increased their LPT beyond the base rate, but the average level of increase is 9%, which is a fair bit below the 15%. Many local authorities, many of which are governed by coalitions between our two parties, have been successful in persuading voters that paying a bit more can lead to better services and amenities within their community. I know the Deputy appreciates that. That is why we put in place the change of going up by 25%. I will take on board the point he made and I hope the change in the income thresholds will be of some help to those who find this difficult.

Séamus McGrath (Cork South-Central, Fianna Fail)
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I appreciate that the Minister will keep this under review. I acknowledge the change in income thresholds, which is welcome.

I will speak on the tariffs for a moment. As a Deputy representing Cork South-Central, we have a large concentration of US companies. I live only a couple of miles from Ringaskiddy, a large industrial base. I welcome the Minister's comment earlier that our first and foremost priority is negotiation and finding ways forward but it is critical we have a strong strategy for our multinational and FDI sectors to show them the Government will take a step-by-step approach with them in addressing the economic challenges we face. It is vital we show that support to them and show that we will be shoulder to shoulder with them so that we can navigate these difficult times. They are unprecedented times. I know the EU will respond as a collective but Ireland is particularly exposed. Within Ireland, the region I represent is particularly exposed. I urge the Minister to ensure every effort is made to find solutions and negotiate our way out of this. Obviously, the EU will respond in due course in terms of potential reciprocal tariffs.

Paschal Donohoe (Dublin Central, Fine Gael)
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I referenced earlier the large number of significant employers clustered in particular parts of our country.

This is, for want of a better phrase, because of the ecosystem and their ability to upskill people working in communities who then leave to go to employers in similar sectors located in similar parts of our country. There are some very large employers, and one in particular that Deputy McGrath is referring to. I absolutely understand that. The Government and I have engaged with individual employers on this. We are proud to have them in Ireland. They have contributed to the growth of our country but we also believe we have played a role in contributing to their success here and back home in the US also. Of course we will continue to engage with these very important employers at what is also an unprecedented time for them. All Deputies have emphasised this to me today.