David Cullinane (Sinn Fein) | Oireachtas source

I accept that certain individuals in the Labour Party say one thing outside the Chamber and then adopt a different position in respect of low and middle-income families when they are in the House. Regardless of whether those to whom I refer like it, I must make the point forcefully that we are referring to people on very low incomes who are being given the option to defer. If they choose deferral, it will mean that they will be obliged to pay interest. The Minister of State is essentially saying they should not pay the property tax and should allow their loved ones to pay it for them when they die. I do not believe that is fair. In the context of dealing with low and middle-income families, there are better ways to proceed and I certainly will not take lectures from the Labour Party on this matter.

It is not true to state the tax will remain the same up to 2016. I accept that the Government is not going to increase it, but we know that, regardless of the spin in this regard, local authorities have been given the power to increase the charge in 2015. They will also have the power to reduce the charge. We are all wise enough to know that if a local authority uses the powers at its disposal to do anything, it will be to increase the tax. It will certainly not be reduced. God only knows the level to which property tax will rise post-2016. The Minister of State referred to small and reasonable amounts and accepted that it would be difficult for some families to pay the tax. The average payments will be ¤225, ¤315 and ¤405 annually. Most people will broadly fit into one of these three payment categories. Any of the amounts in question will be huge for families genuinely struggling and suffering. There are better ways of raising the money required. It could, for example, be done by means of the income tax system rather than by imposing a tax on family homes which do not generate income. That is the core philosophical point I wish to make.

The Government has not done enough for people whose homes are in negative equity. It has not done enough across the board for those who are finding it difficult to pay their mortgages. Even in introducing this charge, it simply has not done anything to support the families to whom I refer. Where something has been done in the context of the deferral system, it is proposed to penalise those who take this option by obliging them to pay interest at a rate of 4%. That is not fair.