Seanad debates

Wednesday, 6 March 2013

Finance (Local Property Tax) (Amendment) Bill 2013: Second Stage

 

12:20 pm

Photo of Martin ConwayMartin Conway (Fine Gael) | Oireachtas source

However, I will take the opportunity to speak. I welcome the Minister of State to the House. No tax is easy and certainly, no new tax is easy. Unfortunately, due to the present economic environment and the challenging fiscal difficulties, there is little choice. Property tax is an international norm in that most countries in the world have a very well-established property tax. There are a number of very welcome elements to this particular tax. It is set in stone for the next number of years. This will bring certainty to the market for those purchasing properties. Following on from the local elections in 2014, local authority members will have a certain scope as to the setting of their local rate. I believe that future generations of public representatives will see this element of the tax being increased and local autonomy with it. I believe that political reform and reform of local government funding will go hand in hand. There has been significant political reform with a completely revised localised political agenda and there will be a referendum on the future of this House later this year. Naturally, that has to go with providing people with more autonomy in the raising of funds. The 15% element within the property tax is welcome. I would like to see that provision developed in the future.

This is a very important incremental step in our financial recovery. I commend the Minister for Finance and the Minister for the Environment, Community and Local Government for preparing people for what will be a long-term tax. In my view, this tax will not be abolished. It should never have been abolished in the 1970s in the first place. We need a properly structured myriad of taxes. This tax emulates best international practice. We may not like it but it is a necessary tax.

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