Seanad debates

Thursday, 14 February 2013

10:30 am

Photo of Marc MacSharryMarc MacSharry (Fianna Fail) | Oireachtas source

I am afraid I must continue with a similar theme to that aired in recent days in the House. As Members will be aware, the Government yesterday published the Finance (Local Property Tax) (Amendment) Bill 2013. While I have been stating in recent days that the banks are in denial in the context of dealing with real people's problems, it appears as though the Government is in denial on this issue. Far from the quotations of last September, when the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Gilmore, spoke of a tax that would be affordable for families, the Minister of State, Deputy Creighton, has complained that people should not be punished for their addresses but that square footage and ability to pay should be taken into account. Fine Gael's general election manifesto claimed "an annual, recurring residential property tax ... is unfair". However, in a move that is far removed from that and which missed the opportunity that presented itself with the aforementioned amendment Bill, for which Senator Byrne rightly called in his statement yesterday, there is further exacerbation of the problem for the 29% of mortgages that are in arrears, for the huge level of unemployment that obtains throughout the country and for the 50% of mortgages that are in negative equity. This measure is not affordable for families and is not linked to ability to pay. This is a tax on everyone in the country and by the Taoiseach's own admission, it will hit middle Ireland most, that is, those who increasingly are being asked to cough up repeatedly. I refer to a couple with two children who, by the end of this year will lose ¤240 in child benefit, will pay more than ¤500 between them in PRSI tax and now, on average, will pay between ¤300 and ¤500 a year on a property tax that is downright discriminatory. What was wrong with suggestions to impose an additional 3% tax on those with an income of more than ¤100,000, who frankly, were conditioned for such a hit in the budget? However, as Fine Gael would not have that, the Labour Party was obliged to swallow it. That is wrong. What is wrong with a tax on off-licence sales regarding the cheapest alcohol that is leading to so many difficulties nationwide? These two measures would bring in the same amount of money.

It is not the principle of having to pay a property tax. Of course that is just in normal conditions, but we are far from normal trading conditions.

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