Results 8,601-8,620 of 35,563 for speaker:Pearse Doherty

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: This section in the Finance Bill is larger than many Bills we deal with. Some of it is quite straightforward and other parts are a bit more complex. We will have another opportunity to look at it on Report Stage with the Minister's amendments and others. I know we are restricted to three interventions or something like that, but I ask the Vice Chairman to allow a bit of back and forth to...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: That site is currently being charged €70,000 to try to encourage its development or sale for development purposes and yet there is a reduction here. That is the concern. The vacant site levy was raised from 3% to 7%. There are many more issues with the vacant site levy regarding collection, implementation, local authorities and all that. The rate was also raised because at 3% on a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: I understand that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: I can understand some of the Minister's logic. As the net is far bigger, with a lower rate we might be able to move some of these sites on. However, it does not take away from the fact that by 2024, when this kicks in, the tax liability for sites where the owners currently pay the vacant site levy will reduce by more than half. That is problematic because at that point, rather than being...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: I understand that and the cumulative effect of it. What data has the Department collected on land value inflation over the last period? What projections does it have over the next five to six years? This means nothing if land values are increasing by more than 3%. There is no incentive to do anything because people can just sit and ride it out if land values are increasing every year.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: The value of the tax will increase but the over-value of the site that the owner disposes of at the end will increase. Has the Department done calculations based on land value inflation of, for example, 5%?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: I know.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: If the value of land increases and we take the portion of the increase every year, then the tax that is paid on that is 3%. The landowner will be able to maintain 97% of the portion of the land value increase each year. If the land value increases by more than 3%, there is a benefit for the landowner to do what is happening across the State, which is hoarding. That is the problem here....

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: Does the Minister have any indication of where it will be?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: Does the Minister accept if land value inflation were running hypothetically at 5% per annum, even with this tax there is an incentive for landowners to hoard land with the aim of cashing in some years later with a higher value on disposal?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: That is fine. Will the Minister give a working example, from the Department, of land value inflation running at 5% to 10% on a percentage basis and what that will mean for the tax? That would be helpful for the debate. Again, my contention is that the middle of a housing emergency is not the time to introduce a tax, which will not come in until 2024 at the earliest or 2025 for other...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: Okay. The toing and froing in respect of the local authorities takes up a large section of the legislation. It again speaks to the fact that, in some cases at least, this tax will not come in for another four years. This is not the time to introduce it at a low rate. We will bring forward amendments regarding that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: It is for the newly zoned land-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: It will be three years for all other lands.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: In the middle of a housing crisis, even three years is a long time. Given-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: I would assume-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: That is the key point. That is why we should introduce it at a higher rate. They will not have to pay it because they will take action, which is the desired effect the Minister and I want, but having a higher rate will ensure more people will take action.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: That is fine. If landowners do not develop, and if there is residential land in our towns and cities that is undeveloped, then they should pay 10% over three years. They should probably be paying 10% in the first year. We are in the middle of an emergency. This is not the time to be thinking about the poor craturs who are hoarding land in the middle of our towns and cities. This is a...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2021: Committee Stage (Resumed) (18 Nov 2021)

Pearse Doherty: Is that an executive decision or a reserve function of the local authority? Are all these decisions under this legislation taken by members of the local authorities or by their executives?