Feargal Quinn (Independent) | Oireachtas source

The Minister of State is welcome to the House. Nobody welcomes any tax. This is one we debated some time back and we are not here to debate it again. We are here to debate the exemptions. I will make a few suggestions.

Should we consider applying some discount where there are fewer than two residents in a property? The exemption could be based on census figures. In the United Kingdom, a discount of 25% is available when there are fewer than two residents in a building. It would be interesting to consider that in the context of the Bill. More occupants usually means it is easier to pay. An amendment would therefore be appropriate. I am interested in a number of exemptions and whether they should be stated explicitly in the Bill. If a bank repossesses a property, is it liable to pay the property tax? It is just a question. Are diplomats and people in prison liable to pay the property tax? One might ask why I have raised such specific examples. In some EU member states, exemptions in these circumstances are clearly provided for in legislation. Should we amend our legislation to clarify the position here?

I found no mention in the Bill as initially drafted or as currently presented of occupiers aged under 18 years. Perhaps we should consider an exemption where a house is occupied by people who are all under the age of 18. I wonder also if we should consider amendments to cut out those elements of confusion for the citizen or consumer. Given the valuations of houses, will the Minister consider an amendment so that some universal benefits could be withdrawn from those who paid property tax on a house valued over ¤1 million? Given the problems of means testing, this might be a way to introduce a more equitable system of social welfare. I wonder if we could introduce an amendment to that effect.

While we need to balance the books and I support the legislation, we must pay heed to the wider situation, particularly the mortgage crisis, which a number of speakers have mentioned. Anecdotally, I hear that people have over the last few months stopped spending. I have heard this from some business people, one of whom runs a garage and says there has been quite a drop in custom. People are thought to have ceased to spend in anticipation of the new property tax. I hope the Government will take on board the message that we are at about saturation point on the Laffer curve. The Laffer curve demonstrates that at higher rates of tax, less income is taken in by the Exchequer. At lower rates, more income is taken in. If there are green shoots of recovery, the Government must not go on increasing taxes. James Mackintosh of the Financial Times wrote "Ireland has met every one of the 190 requirements of the Troika of the IMF, ECB and European Commission overseeing its rescue programme". It is amazing to consider what the reward has been for the Irish citizen for the many sacrifices we have undertaken. I hope the Government has some pleasant surprises for citizens in the next budget.

I have tried to concentrate solely on the exemptions and to avoid discussing the property tax, which we have spoken about in the past. Today is the day to discuss the exemptions, some of which we must welcome. I have made a number of suggestions but we will wait to see if they form the basis of amendments.