Paudie Coffey (Fine Gael)

I move amendment No. 3a:

In page 5, subsection (1), between lines 10 and 11, to insert the following:

"(i) a building which is occupied as a dwelling by a parent or both parents of the owner,

(j) a mobile home,

(k) a building which is the subject of a dispute in relation to probate for a period of five years or more.".

We propose this amendment to section 2 regarding the meaning of "residential property". In my Second Stage contribution I said this area needs clarification, and that is the reason we propose this amendment. If somebody is living in a granny flat beside an existing dwelling, according to the Bill that granny flat is considered to be a second dwelling and is possibly subject to the charge.

Also, if a family home transferred to a son or a daughter who may have got married and moved on but the house remains in their name, with the parent of that son or daughter remaining in the house, there would be no rental income from the house yet under the terms of the Bill that house would be liable for the charge. That is inconsistent with another area in Revenue in that where a house is inhabited by the parent of the owner and there is no income from that house, it qualifies for mortgage interest relief. The general principle should apply in this Bill as well where there is an acknowledgement that the parent is living in a house provided for by a son or a daughter, which is reasonable to expect in any circumstances. It is not an investment property nor is it rented out at any stage. Should the parent move on or whatever and the house was then used for rental purposes, I would have no problem with it coming back into the other category where a charge would be liable, but where the parent is still living in the house Fine Gael believes the charge should not be levied in that instance. There are many instances of parents living in accommodation provided by their children in good faith in recognition of the upbringing and care they received. It is not an investment and I would ask the Minister to consider the amendment favourably in that regard.

This is a relatively short Bill of which we are generally supportive because it will support local authorities in the work they do, but it could prove troublesome if issues such as this one are not fully thought out. What we do not want, as Senator Cummins said earlier, is to have to come back to this House with new Bills and new amendments in a relatively short period because of difficulties such as those I have pointed out.

In regard to mobile homes, which the Minister dealt with in his earlier amendment, Fine Gael asked that they not be considered a residence but a holiday home, which is what they are, and that they would not come under the category of the charge.

We also refer in our amendment to "a building which is the subject of a dispute in relation to probate for a period of five years or more". The reasoning behind that is that in many cases throughout the country disputes arise with regard to property in probate. Those disputes can run on for a number of years and we would consider it reasonable that until such disputes are resolved and there is a clear outcome as to the owner of the particular houses, they would be considered outside the category for charge. I would be interested to hear the Minister's views on that or if he has a better suggestion.

This amendment was rushed. To be honest, this legislation appears to be rushed. We would like more time to consider all sections fully and reflect on and propose amendments that can work. I would be happy to hear the Minister's views on the issues I have raised, specifically the one with regard to parents. He might clarify the position on granny flats which are individual dwellings. They have their own electricity accounts. The Minister will refer later to applying to the ESB and so on for information. They have all their own services and electricity and they are stand-alone. I would like clarification from the Minister that they will not be charged this levy. He might also deal with the question of exempting from the charge the houses where the parents of the owners live and from which there is no income.