Alice-Mary Higgins (Independent) | Oireachtas source

I join the Cathaoirleach in welcoming the Aylward family.

In relation to this recommendation, the direct comparator is Dublin and our capital city certainly makes a point of going around comparing itself to San Francisco when it is seeking investment from many of the same kinds of companies that have a home in that US city. Many of us will have had the experience, which does not just apply to San Francisco, of visiting a city and paying a city tax when we stay in a hotel there. That is a standard charge that is applied in lots of cities of various sizes across Europe and elsewhere. It is an important source of funding.

Unlike many others, I support the LPT because while it is not always very well targeted, it is important to look to wealth and to taxation on wealth as well as on income in this State. Taxation can also be at its most effective when it is targeted in relation to particular activities. As the Minister himself said, there are particular parts of the country that may not have large revenues coming through from property tax or from commercial rates. They may have a particular context, specific powers and forms of activity that take place within their areas which might be appropriate for a smaller, targeted tax measure.I say that because I am a little concerned. I know we are moving towards retention, at every level, of the local property tax but there will be a concern when it comes to equalisation because there are local authority areas which are really strapped with regard to their incomes.

The collection issue is not really the main concern in that regard. There is very good reason arrears may not always be collected. The last thing we want is for local authorities to start to move towards evicting or putting pressure on local authority tenants at these very difficult times in housing. However, one of the concerns about the vacant site tax has been about the tax not going back to the local area where it was collected. That was one of the problems. Local authorities were remiss in applying and collecting the vacant site tax but if the moneys from that tax had been ring-fenced for urban or rural development, it might have incentivised and encouraged greater take-up and application of the tax function.

I am looking to the future in some of the areas where we need most action, such as climate change. I am thinking of transition communities such as those in Phibsboro and Donegal. There are local authority areas which have had a greater level of ambition than the national level. I am also looking to the idea that they might be able to come up with targeted, appropriate taxation measures and expenditure plans which might turn out to be leading measures when it comes to addressing the climate crisis. We have seen communities and cities throughout Europe and the wider world which have led, often ahead of their states, in this regard. I am trying to ensure local authorities have the tools to do that.