Dominic Hannigan (Labour)

I welcome the Minister. I am glad to hear his commitment to holding mayoral elections in Dublin next year, a year ahead of schedule. I look forward to elections in other city and town councils and the introduction of new town councils and urban district councils as soon as possible.

If the proposed charge is a new source of local government funding and not merely a replacement of existing Government funding it may be a step forward. I am glad the Government no longer proposes to apply the charge to mobile homes - the Labour Party had tabled an amendment to that effect. Having spent many holidays in mobile homes, I see this as a sign that the Government appreciates that mobile homes are not owned by the rich but by ordinary people who cannot afford an expensive second home. Mobile homes fill a gap in the market and it would not be right to include them in the legislation. I am glad the Government will not impose the charge on them.

I am concerned that self-catering homes are included. I have received much correspondence from people involved in the self-catering holiday industry, who are very concerned by this charge. The chairperson of the Irish Self-Catering Federation, Ms Helen Cousins, says that exempting registered and listed self-catering homes would cost the Government less than €2 million per annum. That is a very small amount compared to the estimated income from the tourism industry. The self-catering sector is worth almost €1 billion to the Irish economy. In addition, a constituent of mine from Laytown has pointed out that if registered and listed self-catering homes are not exempt, the local authority charge might mean that many self-catering operators will not be able to continue in business. Driving anybody out of business is a retrograde step. I urge the Minister to re-examine the issue of taxing self-catering properties. The Oireachtas Library and Research Service offers the information that one company has 750 self-catering properties in Ireland. This company alone will face an annual charge of €150,000 with the introduction of this levy. It will undoubtedly have a significant impact and could lead to a reduction in employment.

I agree with Senator Pearse Doherty's comments about rural homes and family homes in the countryside which have been kept, perhaps vacant, for many years. If elderly parents or grandparents die, people might not wish to sell these houses. They might not fetch a great deal on the open market anyway but they have a value in terms of the links people have to their family home. We should try to find a way to ensure these homes are not subject to this tax.

The €200 charge will be applied equally to all properties, regardless of their value. It is similar to a poll tax. Senator Dan Boyle mentioned that his relations in the UK are paying approximately €1,600 per annum in charges, but the charges in the UK vary according to the size and value of the property. I am not sure it is fair that somebody who owns a cottage in Annagassan or Clogher Head in County Louth, for example, should pay €200 while somebody who owns a second home worth €8 million or €10 million in Dalkey or Glenageary pays the same amount. There are equity issues here. Should there not be some sliding scale?

Payment of the levy can be made over the Internet or in local authority offices. Can Fingal County Council offices accept payment for a property in County Donegal or must somebody who does not wish to pay on-line go to the office in Donegal? Can they make the payment by post? Clarification about the payment mechanism would be helpful. I also have questions about tax issues in respect of the levy. Will the Minister confirm if businesses that operate self-catering homes or a rental scheme be able to get tax back when they pay the levy? Will they be able to claim this charge against their operating costs?

The Government is expecting to use the electoral register to help administer the levy. Everybody is aware of the problems this might cause. The electoral register in many counties leaves much to be desired. This will be compounded by the fact that additional work will be generated in local authorities. There is a recruitment ban in many local authorities so I am concerned about the impact this additional charge will have in terms of the administrative burden.

Research which we have seen suggests a significant amount of money will be raised by the charge. There are potentially 500,000 properties that will be subject to the charge. In Meath, it is estimated there will be an increase of €2 million in revenue and in Louth the increase is also estimated to be €2 million. How will that money be spent? It is important that this should be seen as additional revenue. It should not mean the Government will reduce payments to local authorities equivalent to what the authorities will gain from this tax. The revenue should be hypothecated towards, for example, the roads fund, which has been cut back in many councils and has suffered due to lack of funding. Sums of the €2 million to €3 million per annum would significantly assist the condition of local roads. What advice and guidance will the Minister give to local authorities regarding how this money should be spent? Will it just be put into a general operating costs pot or will it be hypothecated towards specific expenditure items?

The main issue is that we ensure the revenue generated as a result of this Bill will be seen as new revenue for local authorities, not as an excuse to cut back central funds provided by the Government to the authorities. The Labour Party will table amendments to the Bill. We are glad the Minister accepted our amendment relating to the charge on mobile homes but we will table a further amendment to provide that married couples who have separated or entered into an agreement to separate will also be exempt from the charge.