Paddy Burke (Fine Gael) | Oireachtas source

The motion raises many issues. I hope the review of the local property tax will take account of some of the issues raised. My colleague from Mayo, Senator Michelle Mulherin, has raised this issue on many occasions at our parliamentary party meetings and in the House. She proposed a system where the starting point would be the rate at which the local property tax was set when initially. It would then increase on a three year aggregate in line with inflation and a cap would apply. However, when the legislation was brought forward first there was no provision for a cap. There should be a cap.

The Revenue Commissioners have enormous power in respect of the property tax. I believe it is the first time the Revenue can enter a home and take control if the householder is not in compliance with the law. The law provides that householders must estimate the value of their property. As we know, various scenarios can inflate prices or, if there is not enough competition, the price achieved for a property may not be what was expected. I saw a house sold recently where there no bids were made. How would a value be placed on a house like that? In another case where a few people wanted to buy a house, the price was greatly inflated. Does that mean that the value of every other house in the area in question should be inflated as well?

That is where I believe there are inadequacies in the legislation. I raised this issue at a recent parliamentary party meeting with the Minister of Finance, Deputy Paschal Donohoe. He indicated he hoped the review, once completed, would deliver a fair and affordable system. I hope that will the case and that people will not be criminalised for putting a wrong value on their home. It is very hard for an ordinary individual to put a value on their property. How do they do that? People do not know what the value of their house is unless they put it on the market. That is when the real value of a property becomes known.