Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The EU/IMF Programme of Financial Support for Ireland commits the Government to the introduction of a property tax for 2012. The Programme reflects the need, in the context of the State's overall financial position, to put the funding of locally delivered services on a sound financial footing, improve accountability and better align the cost of providing services with the demand for such services.

In light of the complex issues involved, a property tax, requiring a comprehensive property valuation system, would take time to introduce and accordingly, to meet the requirements in the EU/IMF Programme, the Government has decided to introduce a household charge in 2012. The household charge is an interim measure and proposals for a property tax will be considered by the Government in due course.

It is estimated that there are some 1.6 million residential properties in the State potentially liable to the household charge. As such, if collected in full, the household charge has the potential to raise €160 million annually. The charge will be collected centrally on a shared service/agency basis for all local authorities. It is intended that the proceeds from the household charge will be paid into the Local Government Fund and will be re-distributed on an equalised basis to local authorities within the context of the annual allocations of General-Purpose Grants. The legislation to underpin the household charge will be published and brought before the Houses of the Oireachtas shortly.