Mary White (Fianna Fail) | Oireachtas source

The imposition of the property tax was a political decision by this Government to break its pre-election promises. It was not written in stone by the European Union and International Monetary Fund. The local property tax has not been about the provision of improved local services, particularly as approximately 30% of the revenue collected in 2014 was diverted to Irish Water.

Fianna Fáil supports the main provision of the Bill, which is the postponement of the implementation of the revaluation date for the local property tax to November 2019. We have been calling for this since 2014 and the Government previously voted down Fianna Fáil amendments that would have dealt with the issue before now. Failure to amend the valuation date would have resulted in massively increased local property tax bills.

There are still many problems in the operation of the local property tax, including a need to address the issue of ability to pay. Fianna Fáil is committed to a review of the property tax which will take account of this. We are also committed to providing relief for homeowners who pay management fees to fund many services ordinarily provided by the local council. The Government has dragged its heels on exempting homeowners affected by pyrite from the local property tax.

The Bill does not address this issue of double taxation on apartment owners who pay management fees and local property tax. A typical two-bedroom apartment in Dublin will attract management fees of €1,200 to €1,400 per annum, which may be equivalent to an additional month's mortgage. Apartment owners and residents of other managed complexes provide many services, ranging from lighting to maintenance of road surfaces, footpaths and green spaces through the annual management fee. These services are ordinarily provided by local councils in housing estates but apartment owners must pay the same level of local property tax. A credit should be provided against the local property tax for up to a third of the liability or €300, whichever is lower, in cases where the apartment owner has paid their management fees in full.

I draw the attention of the Minister of the State to the inability to pay of those on squeezed household incomes. There are still many problems relating to the operation of a local property tax, including a need to address the issue of ability to pay. As I stated earlier, Fianna Fáil is committed to a review of the property tax which will take account of this. I wish put on the record the text of our proposed Committee Stage amendment tabled in the name of Senator Darragh O'Brien.