Fergus O'Dowd (Louth, Fine Gael)

Ba mhaith liom, i dtosach, mo bhuíochas a ghabháil le gach duine a mhol an leasú seo agus a nocht a dtuairimí air. Nuair a thagaim go dtí an tSeanad bíonn díospóireacht an-mhaith ann i gcónaí. Tá sé tábhachtach go bhfuil an díospóireacht seo ar siúl mar Bille bunúsach is ea an ceann seo.

These proposed amendments to section 2 would have the effect of excluding purchasers of houses under the affordable housing scheme and those who have purchased a residential property on which they paid stamp duty between 2004 and 2011 from the ambit of the household charge. This would in effect encompass a large number of homeowners. It is not considered appropriate in this context given the wide applicability of the charge to the majority of residential property in the State and the relatively modest nature of the household charge of €100 in 2012.

In any event, those who have purchased affordable units, either under the 1999 affordable housing scheme or units provided under Part V of the Planning and Development Act 2000 as amended, have received a discount on the market value of the dwelling when purchased. As such, it is difficult in the extreme to suggest such dwellings should benefit from an exemption from the household charge when owners of other residential property, some who may even be residing in the same estate are required to pay this charge.

For houses purchased under the shared ownership scheme, the housing authority concerned retains an ownership stake in the house until the shared ownership purchaser purchases the dwelling outright from the authority. In the meantime, the purchase is effectively renting that portion of the dwelling that he or she does not own. As such, houses under the shared ownership scheme which remain partly owned by the housing authority are excluded from the household charge under section 2(b) as they remain vested in the housing authority until such time as the housing authority's ownership stake ceases.

This Bill provides for several exemptions to the household charge including properties part of the trading stock of a business and have not been sold, occupied or the source of any income since their construction; properties vested in local authorities or voluntary and co-operative housing bodies for social housing, as making such properties liable would lead to a circular flow of income and be unnecessarily bureaucratic; properties owned by a Department or the Health Service Executive and used or let in the performance of their functions as, again, making such properties liable would lead to unnecessary circular administrative structures; properties to which commercial rates apply, as with the non-principal private residence. It is intended this charge would operate as an alternative to commercial rates. Accordingly, a property will be liable for either commercial rates or the household charge if it is a domestic property, but not both.

Exemption also applies to where a person is forced to vacate a property because of long-term mental or physical infirmity. This exemption was included in the Local Government (Charges) Act 2009 as a compassionate measure intended to provide for elderly people who have no choice but to move out of their sole or main residence into a residential nursing home and in cases where a charity owns a property.

In addition to these exemptions, two important waivers will apply to the charge. The programme for Government commits to giving consideration to the impact that such a property tax would have on the number of households in mortgage distress. The Government, therefore, proposes to exclude from the household charge households in receipt of mortgage interest supplement from the Department of Social Protection. Mortgage interest supplement provides short-term support to help eligible households pay mortgage interest payments and has, as a condition of eligibility, that the household could afford the mortgage repayments when the mortgage commenced. In excess of 18,000 households will benefit from this waiver.

The Government also intends providing a waiver for households in certain categories of unfinished housing estates. The Minister for the Environment, Community and Local Government will set out the list of the estates to which the waiver will apply in regulations. This waiver will benefit residents of such estates as they work with other stakeholders in developing resolutions for these problematic developments. It is not proposed to provide for additional waivers or exemptions.

Regarding Senator Ó Clochartaigh's amendment to section 4, the Bill sets out the definition of residential property for the purposes of the household charge. Once enacted the definition cannot be amended without the obligation of amending legislation being passed. In these circumstances, it is considered the insertion of this proposed provision is not necessary.

Accordingly, I cannot accept these amendments.