Jack Chambers (Dublin West, Fianna Fail)
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70. To ask the Minister for Finance to initiate a working group to address the issue of persons in private estates or apartments having to pay full management fees and property tax on their net income; and if he will make a statement on the matter. [6941/16]

Michael Noonan (Limerick City, Fine Gael)
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The introduction of a local property tax is part of a broader approach to the taxation of property. The aim is to replace some of the revenue from transaction based taxes, which have proven to be an unstable source of Government revenue, with an annual recurring property tax, which international experience has shown to be a stable source of funding. 

The Government decided that the LPT should be centred on the principles of equity, transparency and simplicity; and that a universal liability should apply to all owners of residential property with a limited number of exemptions and reliefs.  Limiting the reliefs available allows the rate to be kept to a minimum for those liable persons who do not qualify for relief.

Properties in managed estates, to which management fees apply, would have been purchased by their owners in the knowledge that they would be taking on commitments to partake in, and to fund, the management of the estate, and that it was the intention that many such estates would not be taken in charge by local authorities, nor would it be appropriate for local authorities to do so.

Management fees in these estates can include services such as refuse collection, maintenance of common areas as well as a sinking fund for certain repairs to the buildings, depending on circumstances. These are costs which homeowners in other households have to fund themselves for their own properties.

Revenue from the LPT accrues to local authorities and supports the provision of local services.  Local authorities provide a broad range of services in the public realm, which benefit the wider community.  The proper functioning of these services are important for the well-being of every community and household.  These include: fire and emergency services; road maintenance and cleaning; street lighting; spatial and development planning and other similar services; regulatory and inspection functions and business support services, as well as libraries, parks, and other recreation and cultural public amenities.  The benefits of these services accrue to all members of society.

I have no plans to initiate a working group along lines suggested in the Deputy's question.