Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

There were a couple of questions. The value of the charge will not be based on stamp duty paid. It is incorrect to contend that it will. The charge will be determined in the manner I explained.

When the Government made its decision in July, additional resources were allocated to the Revenue Commissioners for the employment of additional staff in the central unit to administer the charge. Generally, there are many ways of paying the tax. One could pay it by cash, cheque, credit or debit card, or have it deducted from one's salary. For the 1.8 million who work, the easiest approach is to accept a weekly deduction if one is paid by the week or a fortnightly deduction if one is paid by the fortnight, etc. The Revenue Commissioners will make the deduction and the tax will be collected in the same way as PRSI or the universal social charge. It will be another deduction from a wage or salary. This is not a compulsory means of payment. If people opt to pay through deductions, that is how it will be done, but there is nothing to stop someone sending a cheque to the Revenue Commissioners for the whole amount on the due date. The only point to remember is that the default arrangement will be a deduction from wages, salaries or any payment from the State to the individual. A direct farm payment, for example, is an obvious example.

Senator Darragh O'Brien asked about the logic of the exemptions for first-time buyers and those with empty houses.

There might be good value in the market now but value is not a fixed issue. There is no value if one buys today and the price reduces by a further 20%. The purpose of this measure is to try to repair the property market. Last year, I introduced additional mortgage interest relief for people who purchased houses in 2012. This has worked well during the last three or four months. We are now coming to the end of the year and people are scrambling to get their transactions completed. I stated several times previously that this would not be continued. However, so as not to risk the property market coming to a halt again, I have introduced incentives of a lesser value. It is hoped these will keep the property market going. That is the logic of this measure. Estates wherein only one third of the properties are occupied are not in anybody's interest. It is hoped this incentive will assist in the sale of the remaining houses, thus turning ghost estates into living communities. Some measures work and others do not. However, they are well worth trying. That is the justification for this measure.