Aideen Hayden (Labour) | Oireachtas source

I have raised the following matter twice on the Order of Business as well as yesterday on Second Stage. There is confusion in this measure as to whether the tax is a property tax or a local services tax. It is drafted as though it is a tax on the owner of a property rather than the occupier. If it were a true local services provision, it would be levied on occupiers. I agree with the sentiments expressed by Senator O'Brien and I am interested to hear the Minister's response on how it is intended to deal with this. It is a significant issue. One can talk about moving money from one section of a local authority to another and call it a paper transaction, but that does not reflect reality. In reality, the income will have to be generated. I sit on the strategic policy committee on housing of Dublin City Council and I am aware of significant rent arrears within the local authority area. There are similar problems in other local authorities across the State. It is difficult for me to see how a local authority will generate this income.

That is one side of the coin. The other side, which will be even more problematic, involves the voluntary housing associations. In many instances, voluntary housing associations are already levying service charges on tenants, while local authorities do not. There are historical reasons for that relating to the Housing Act 1966 and the definition of "deferential rents". There is no ability within the voluntary housing sector to levy greater charges on tenants. Clúid has between 5,500 and 6,000 units and it is impossible to see how the sums in question can be raised. I ask the Minister to give the matter very serious consideration. Government policy relies on the voluntary housing sector to provide increased housing stock for the poorest, most vulnerable people. I would hate to see a measure introduced which had the unintended consequence of completely undermining the voluntary housing association sector.