Kathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister of State. I see that some of the amendments we have tabled have been ruled out of order, while there are others we will probably not reach. This is obviously not a tax with which we agree. While we do not oppose the Bill because there are some elements that are important in the granting of relief in pyrite remediation and for people with disabilities, we are opposed to the underlying principle which the legislation seeks to amend as it concerns property tax.

We are withdrawing some of our amendments, particularly those in which we oppose sections of the Bill. These amendments were originally to be submitted together to remove chunks of the Bill to repeal the local property tax in its entirely. Therefore, we will not be pushing them. However, we will be discussing other amendments, if we reach that Stage of the Bill.

Davy has predicted that by 2019 the average house price will have risen by €68,000, which means that the average family could be paying €180 extra per year in local property tax. People are not stupid and realise this change is coming down the line. One of the dangers identified in the Thornhill report on the local property tax was that the longer revaluations were left, the harder it would be to make them as the bigger the jump would be. It also pointed to the possibility of legal challenges similar to that in the 1980s to the agricultural rates system.

Sinn Féin believes the local property tax model is broken and unfair and has always stated this. Given the rushed nature of this legislation and the limited time we have to discuss it, we will not have time to reach the amendments tabled or to discuss the rationale behind what we attempted to do. When reading up on the legislation, I noted that it was stated in one national newspaper that the local property tax was on life support and that the next Government would have to make a quick decision on whether to revive it or kill it off. The effect of accepting our amendments as a group would be the abolition of the local property tax. That is my party's commitment, if elected to government. We tabled legislation which was rejected, but it is very much a firm promise by which we stand.

As mentioned, the Thornhill report contained warnings about the existing exemptions and suggested they be abolished and that a new valuation method be developed to stop the local property tax from losing legitimacy, or, as I said, facing a legal challenge. Dr. Don Thornhill said that unless the tax was put on a fair basis, it would either wither away or face legal challenges. He suggested a new way of setting the tax based on the funding needs of local authorities. What is the Minister of State's view of this? He said in a speech on the report that the recommendations made in the Thornhill report would be considered by the incoming Government. What does he envisage for the local property tax post-2019? What is Fine Gael's view and what are its plans post-election, should it be in government? In the context of the Thornhill report's recommendations, what would the Minister of State like to see being done? Will he take on board elements of the report? Will Fine Gael abandon the tax, which is what we believe should be done?

As other Senators mentioned, the Bill contains new measures to remedy the pyrite exemption scheme. Only 5% of applicants have been successful and the Department has admitted that the scheme is flawed and that it costs more to complete the necessary paperwork than the exemption is worth. I do not believe we will have time to properly scrutinise the changes, but I hope they mean that families affected will received what was promised to them.

I am disappointed that the opportunity was not used to make a move to introduce a similar exemption scheme for those affected by the mica block issue in County Donegal or for the residents of Longboat Quay and Riverwalk Court who find their homes practically valueless through no fault of their own. It is not acceptable that we are leaving it to the residents to declare themselves exempt. They need a clear signal that any such declaration will be met with a very positive response from Revenue. I understand there has been some progress made, but a total exemption, rather than a partial exemption by charging them at the lowest band rate, is warranted.

As I said, we will support the Bill, or, rather, that we will not oppose it. While it has some important element, we oppose the local property tax. It is our commitment that, if elected, we will abolish it.