Victor Boyhan (Independent) | Oireachtas source

I thank you, a Chathaoirligh, for selecting this matter. I welcome the Minister of State, Deputy Fleming, to the House.

This relates to reform of the local property tax. I am calling for an end to the local property tax section 8 exemptions. Some elderly people in their 70s, 80s and 90s living in locations like the one in which I live, Dún Laoghaire, have no income other than the State pension and are paying the tax. They can apply for a deferral which is not always granted. As the Minister of State will know, many people do not like to leave unfinished business behind them. They do not want to leave debts or bills behind them for anyone. It is part of our psyche, which I understand.

The existing exemptions are as follows. Properties purchased in 2013 are exempt until the end of 2021 if used as a sole or main residence. Properties that were self-built from 1 January and 1 May 2013 are exempt until the end of 2021 if used as a sole main residence. Properties that were self-built after 1 May 2013 and before 1 November 2021 are not liable for LPT until 2021 even if sold again in that period. New and previously unused properties purchased from a builder or developer between 1 January 2013 and before 1 November 2021 are exempt until the end of 2021 even if sold again in that period. Residential properties constructed and owned by a builder or developer that remain unsold and have not yet been used as dwellings, known in the business as trading stock, are exempt.

I think it needs to end. There was a logic for it, but no longer. We are in a different time. Last week I cited an example of two professionals living in a house valued at nearly €2 million and they are not paying this tax. This tax has no relationship to people's income. It is associated with the value of the house. It is an unjust and unfair tax. I have always strongly advocated for a local council contribution. It can be called a local council tax or whatever the Government likes, but it needs to be upfront and straight with people.I recognise that local government needs funding and that people should pay for that. I am not here to advocate that councils not be given an income. Local authorities are strapped. In essence what I am saying is that the local property tax needs to be reformed and that the current exemptions are grossly unfair to both other payers of the local property tax, LPT, and to those involved in the local authority.

While I am on my feet, I will stress that I support local authorities and recognise their needs and the difficulties they have in funding their core services. We have to do everything we can to increase their income but the reality is that we need, on another day, a long debate to tease out how we are going to sustain and fund our local authorities so that they can be viable. If we want to empower local communities and address the issues of subsidiarity and of making decisions at a local level, we have to give local authorities adequate funding to do their work and, more importantly, we have to hold them to account. The job of city and county councillors is to hold council executives to account to ensure that they get value for any citizens' money used and that it is used appropriately. Will the Minister of State touch on the issue of section 8? What is the Government's plan to address this anomaly under the programme for Government?