Darragh O'Brien (Fianna Fail) | Oireachtas source

I agree with what Senator Reilly has said. Amendments Nos. 18 and 27 are in my name and they make similar proposals to what has been outlined by Senator Reilly. I mentioned on Second Stage that the Minister has gone against the recommendation of the Thornhill report in this regard.

On Second Stage, I provided specific figures with regard to Fingal County Council and Dublin City Council. Based on the number of social housing units they have, a full year cost for Fingal Council based on an average payment of approximately ¤325 would be approximately ¤1.6 million and more than ¤3.5 million for Dublin City Council. This money must be provided for in the budget passed just this week. This property tax is being sold as something that will fund local government, which is fine. However, the issue is that we have a situation where two local Dublin authorities - three if we include Dún Laoghaire-Rathdown - will either have to increase rents for social housing tenants or reduce services. This is contrary to what the Government has argued this Bill is about. It says the Bill is about broadening the tax base and funding local services. I will not labour this point further as I made the same point yesterday.

There is an issue with regard to the voluntary housing sector, such as organisations like the Iveagh Trust, Clúid and the North and East Housing Association. The Thornhill report recommended that these associations should be exempt from the tax. The Minister mentioned on Second Stage that he would look into this area and that his officials were talking to the housing associations. I welcome that. Does the Minister envisage addressing this further in the Finance Bill? Can we take it that there is a commitment or at least a desire on the part of the Government and the Department to deal with the voluntary housing sector?

Clearly, the Minister is not going to deal with the issue of the charge on local authority housing, which the Thornhill report said was effectively a circular tax.

From what has been said already, it appears that 65% of the money raised will go back to local authorities. The remaining 35% will be retained in the central Government pot. If Fingal County Council pays ¤1 million, it will get back ¤650,000 while the Government retains ¤350,000. I would like to hear the Minister's views on that.