Maureen O'Sullivan (Dublin Central, Independent)
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To ask the Minister for Finance if he has considered the implications of the proposed property tax, if it is imposed on housing associations particularly in view of the increasing demands on their services by many people, especially vulnerable people with mental health issues and addiction issues, former prisoners; and if he will make a statement on the matter. [5349/13]

Michael Noonan (Limerick City, Fine Gael)
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The Government is aware of the important role played by the approved housing bodies in the provision of housing for those who face difficulty in living in our communities. To the extent that such groups are charities and are engaged in the provision of special needs housing, they should be eligible for the exemption for such housing which is provided for in the Finance (Local Property Tax) Act 2012. I understand that most of the various bodies that comprise the voluntary and co-operative sector in respect of the provision of social housing would have been approved for charitable status by the Revenue Commissioners. Indeed, such bodies must have such charitable status before they can be approved by the Department of the Environment, Community and Local Government for funding to be used in the provision of social housing. Such groups also provide general needs housing in the same way as a local authority provides such housing. Depending on the level of local authority funding provided, some voluntary bodies may have flexibility to provide housing for those not eligible for local authority housing. To provide for a blanket exemption for such bodies would obviously be inequitable vis-à-vis local authority tenants. For this reason, the Government decided not to accept the recommendation of the Thornhill Group that all charitable bodies should be exempt but to restrict the exemption to those properties that are used to provide special needs accommodation to persons who, for reasons of old age, physical or mental disability or other cause, need special accommodation and support to enable them to live in the community. I accept that Government policy places significant emphasis on the approved housing body sector as an important part of social housing supply in the future. Issues relating to the impact of the Local Property Tax on approved housing bodies are being examined.