Seanad debates

Thursday, 14 February 2019

Nithe i dtosach suíonna (Atógáil) - Commencement Matters (Resumed)

Property Tax Review

10:30 am

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I join the Cathaoirleach in welcoming our distinguished visitors to Leinster House. It is good they are here.

We were discussing the local property tax. Senator Boyhan is about to head off to tell all his supporters around the country what I have been saying here on behalf of the Minister for Finance. The Minister is taking this matter extremely seriously. As he is awaiting the report, he obviously cannot make a determination until he has seen it. The report is not ready yet but when it is ready, I am sure the Minister will communicate with the Senator and tell him exactly what he intends to do. The Senator's number may be the first on the Minister's speed dial list because he is so interested in this matter, and rightly so.

The introduction of the local property tax could fill the most important objective of broadening the domestic tax base and replacing some of the revenue from transaction based taxes with an annual recurring property tax. In the past, there was an over-reliance on transaction based taxes and we know only too well how that proved to an unstable source of Government revenue when the financial crisis impacted. As the Senator will be aware, in contrast international experience has demonstrated that property taxes provide a secure and stable source of funding. Stability needs to be the cornerstone of our public finances now and into the future.

The Minister for Finance considered it was important that the Government was able to make its position clear in relation to the local property tax so that households will be aware of its plan for the tax well in advance of November 2019 revaluation date, and the associated local property tax liabilities in 2020 and beyond. We have some time yet. The Minister also considered it essential that the principle of achieving relative stability in local property tax payments of liable persons, both over the short and longer term, formed part of the current review he has ordered on the tax.

As I indicated, the report of the interdepartmental group that is reviewing the tax will be available to the Minister shortly and he will consider it carefully before making any recommendations to Government and letting Senator know what his thoughts are as well.

Photo of Denis O'DonovanDenis O'Donovan (Fianna Fail)
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I am sure Senator Boyhan will return to the issue again perhaps-----

Photo of Victor BoyhanVictor Boyhan (Independent)
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Within the hour.

Photo of Denis O'DonovanDenis O'Donovan (Fianna Fail)
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-----before Valentine's Day of 2020

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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I have no doubt about that.

Photo of Denis O'DonovanDenis O'Donovan (Fianna Fail)
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I thank the Minister of State and Senator Boyhan.

Sitting suspended at 11.10 a.m. and resumed at 11.30 a.m.