Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Environment, Community and Local Government the extent, if any, to which agreement has been reached or arrangements put in place to set the levels and methodology for collection of the household charges which arise as a consequence of the Memorandum of Understanding and the general economic situation arising in the wake of the on-going economic crisis which he inherited on assuming office; if he will try to ensure that the level of such charges will be cognisant of the many serious financial obligations and cutbacks now faced by the people; if he intends to have regard for the ability to meet the payments in such circumstances; if it is expected that payment can be made on a monthly basis or other deferred basis; if it is expected that the relevant local authorities are likely to benefit in a meaningful way from such charges; and if he will make a statement on the matter. [39015/12]

Séamus Kirk (Louth, Fianna Fail)
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To ask the Minister for Environment, Community and Local Government the impact he anticipates the future property tax will have on local authority revenue; if the revenue raised will go directly to the local authorities; and if he will make a statement on the matter. [39003/12]

Timmy Dooley (Clare, Fianna Fail)
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To ask the Minister for Environment, Community and Local Government if he will outline his proposals for a property tax; the time frame for the implementation of same; the estimated average cost per house; and if he will make a statement on the matter. [38991/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 60 to 62, inclusive, together.

The EU/IMF Programme of Financial Support for Ireland contains a commitment to introduce 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. It was considered that, in light of the complex issues involved, a property tax would take time to introduce and accordingly to meet the requirements in the EU/IMF Programme, the Government decided to introduce a household charge in 2012 as an interim measure.

By international standards, the revenue base of local authorities in Ireland is relatively narrow, and local authorities here are disproportionately dependent on central Government funding. The introduction in 2009 of the charge on non-principal private residences represented an important step change in how local government is financed and was the first dedicated new source of funding for local authorities in some years. It did not, however, go far enough in addressing the imbalance in the sector’s financing. A more effective broadening of the revenue base for local government will be achieved by the household charge and the forthcoming full local property tax.

In February 2012 an independently-chaired Inter-Departmental Expert Group was established to consider the structures and modalities for an equitable valuation-based full local property tax. The Group recently submitted its report to me and its recommendations will be considered in due course. Proposals will be brought to Government as soon as possible and it will then be a matter for the Government to decide on the exact details of implementation taking into account the modalities involved. The Government has decided that the local property tax will be collected and administered by the Revenue Commissioners.