Paul Gavan (Sinn Fein) | Oireachtas source

The Minister is very welcome. I will go through a few points first. In Sinn Féin's view, the Bill before the House confirms the unfairness at the heart of the budget. This is the Government's final budget, and it is on course to deliver the same two-tier income tax package we have come to expect. The cost-of-living crisis is not over. Yet, this Government, through its unfair income tax package, has again chosen to short-change anyone earning the average wage or below and workers who have been hardest hit by the cost-of-living crisis.

Sinn Féin showed how the Government could deliver a fair tax package for all workers by abolishing the USC on the first €45,000 a person earns, starting with the first €30,000 this year. Under the Government's income tax package, someone on €180,000 would benefit by three times as much as someone earning €35,000. How is that fair? The workers at the sharp end of the cost-of-living crisis have been let down again by this Government. In addition, the Government has singled out some of the highest earners in our society for additional tax reliefs, including increased tax breaks for landlords.

Sinn Féin has long called for a renter's tax credit. The Government was dragged into this position, but the credit will be eaten up by rent increases in the absence of a cap on rents. The standardised average rent increased by 8.1% for new tenancies nationally and by 5.9% for existing tenancies between quarter 1 of 2023 and quarter 1 of 2024. Indeed, with regard to the escalating cost of rents, I point out to the Minister that for the lifetime of this Government, rents in Limerick have gone up by €10,000 per annum. That a truly shocking figure. That is as a direct result of the choices the Government has made.

Many mortgage holders have again been left out in the cold. Households may have an outstanding balance of €80,000, locking many out of a scheme who have nevertheless seen their annual mortgage costs rise by thousands of euro. The Bill before us will also fail to tackle some of the biggest issues we face in terms of bulk-purchasing of homes by vulture funds. Banks will be allowed to keep their windfall profits, with no increase to the banking levy. Those profits have come not through innovation but at a direct cost to households. The €200 million in this regard is a continuation of the bank levy at its existing rate, meaning no increase to reflect the huge profits being made by the banks as a result of higher interest rates. Sinn Féin called for a €450 million tax on bank profits through the bank levy. It is further evidence that this Government is out of ideas. It is more of the same from two parties that have been too long in government.

I will deal with two or three issues in the time remaining. As the Minister can see, we have plenty of recommendations to work through later this afternoon. However, I will try to work through them as quickly as possible because I want to be fair to my colleagues, particularly Senator Higgins who has some very valuable recommendations of her own to work through.

On capital acquisitions tax thresholds, I guess this is just an ideological difference - a left-right difference - to be fair to the Minister. Sinn Féin believes that inheritance tax is an important tool to tackle inequality. As such, we do not support any increase to the capital acquisitions tax relief thresholds. We note that the Commission on Taxation and Welfare recommended substantially reducing the capital acquisitions tax relief thresholds. Therefore, it is extremely disappointing to see the Government ignore those recommendations. As I mentioned, we welcome the increase to the rent tax credit, but this will be eaten up by rent increases without a cap on rents. That is really the step that should have been taken by the Government.

I want to talk about the residential zoned land tax, RZLT. This was introduced in the Finance Act 2021 and seeks to increase housing supply by encouraging the activation of development on lands which are suitable zoned and appropriately serviced. RZLT is an annual tax to be calculated at 3% of the market value of the land in scope. Sinn Féin believes that residential zoning should be made on a use-it-or-lose-it basis. In Sinn Féin's view, where a landowner or developer has not either sought planning permission on land zoned residential or where planning permissions have not been activated, the land's residential zoning should not be automatically carried over in the development plan review. Rather, the landowner or developer should be required to justify why the land in question was not subject to development during the lifetime of the previous development plan. Where legitimate grounds can be provided, such as legal challenge, economic conditions, etc., then continued residential zoning can be considered. However, where landowners and developers cannot provide any legitimate grounds for not developing their sites, they must understand that this failure to develop land will result in the removal of the residential zoning. The Economic and Social Research Institute, ESRI, the Government's own think-tank, has warned the Government against delaying introduction of the RZLT.

The Bill provides for an increase to the rate at which the vacant homes tax is charged from five times to seven times a property's existing base local property tax liability. That increase will take effect from the next chargeable period, commencing on 1 November last. In our view, this is insufficient to tackle vacancy and dereliction. The tools in place, namely the local authority derelict sites tax and the recently introduced vacant property tax are poorly designed, badly implemented and do not work. In government, Sinn Féin would transfer responsibility for the derelict sites levy to Revenue. The new vacant sites tax would be set at 7% in the first year after the transfer and increased by 50% for each year a site was left vacant. Sinn Féin would also increase the vacant property tax to 1% of the market value of the property and increase it annually by 50%. Holiday homes and homes in the fair deal scheme and in probate would be exempt. The purpose of these two proposed taxes from our party is not to raise revenue but to incentivise owners of vacant or derelict properties to either use, rent or sell the properties.

I wish to mention the stamp duty on residential property as it relates to the bulk acquisition of homes.The Bill provides for the higher stamp duty rate of 10% on bulk acquisitions to be increased to 15%. This measure applies where ten or more residential properties, excluding apartments, are acquired in any 12-month period. As the Minister of State knows, we initially called for stamp duty to be increased by at least 17%. However, this is about speed and intent. Since then, we have seen vulture funds continue to snap up homes. Sinn Féin has long supported a 100% stamp duty to stamp out this practice, most recently tabling amendments to the Government's financial resolution to that effect. Furthermore, we believe the criteria should be more restrictive and also apply to apartments.

I could make many more points, but I am conscious of time and allowing others to speak. I smiled when I heard my good colleague Senator Maria Byrne suggest to Minister for Finance that she hopes to see him back as Minister for Finance. That very much confirms the cemented relationship between Fianna Fáil and Fine Gael. I have long maintained that there is no difference between the two parties, and that is very clear from the debate we have had for some time in this Chamber. As long ago as five years, I believe, I was on the record as predicting a merger between the two conservative parties in this country.