Seanad debates

Wednesday, 5 November 2008

Budgetary Measures

 

7:00 pm

Photo of Pearse DohertyPearse Doherty (Sinn Fein)

Cuirim fáilte roimh an Aire Stáit. Ba mhaith liom an táille ar thithe saoire, tithe atá á ligint ar cíos agus tithe nach bhfuil an t-úinéir ina chonaí iontu, a thugadh isteach i mbuiséad 2009, a ardú os comhair an Tí. D'fhógair an tAire Airgeadais trí sheachtain ó inné go mbeadh táille de €200 i gceist. Conas a chuirfear an scéim seo i bhfeidhm? Cathain a mbeidh an reachtaíocht os comhair an Tí? Conas a oibreoidh an chóras i gcás duine atá ina chónaí taobh amuigh den Stát? An gcoinneofar an tairgead sna ceantair — na comhairlí contae — ina bhfuil na tithe éagsúla?

This Adjournment matter deals with the budget, which has been a savage attack on the most vulnerable people in society. When I heard the Minister for Finance announce the €200 levy on holiday homes, however, I welcomed it. Earlier this year, I called on the Minister to allow local authorities to impose a levy on holiday homes across the State. The Minister went further than holiday homes, however, dealing with the rental sector and non-principal places of residence. When will the legislation be brought forward? Will the moneys collected within a local authority area remain within that area? How will the levy be applied to people who live outside the State?

When I asked earlier this year that a levy be imposed on holiday homes, I was asking for it to supplement local government funds. Unfortunately, however, three weeks ago the Minister and the Government decided to slash the funds available to local authorities. We now see many local authority projects across the country grinding to a halt because they cannot reach the matching funds. This should not be an either-or situation. As all Senators know, local authorities badly require additional revenue. Widening the scope for additional revenue to local authorities is positive in one regard, but it is deplorable to take it away with the other hand.

The Minister of State will be aware that many local authorities are currently examining their budget estimates. Many of them consider this holiday home levy to be the great white hope to bridge the funding gap that exists. The only other solution is to increase rates, but nobody wants to see that happening in the current environment. It is important to bring this legislation before the House, where I will examine it closely.

On budget day, the Minister said all other non-principal places of residence will be levied. However, my county has the highest unemployment rate in the country and many people must travel to Dublin or abroad to find work, thus leaving their houses vacant during the week. Under the Minister's plan, such houses would be subject to a levy. We will deal with these matters when the legislation comes before the House, but I would ask the Minister of State to deal with the questions I posed. When will the legislation be brought forward, will the moneys collected in a local authority area be kept within that area and how will the levy be collected from people who have property in the State but reside outside it?

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