Michael McGrath (Cork South Central, Fianna Fail)
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The Deputy will be aware that it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

The Government is acutely aware of the difficulties in the housing market and the challenges this presents for many people and families at the moment. The need to address vacancy and to ensure all viable housing stock is being used is a priority for the Government. In Housing for All, the Government has set out a suite of incentives to address vacancy and efficient use of existing stock.

Following on from a commitment made in Housing for All, a new Vacant Homes Tax was announced in Budget 2023 and legislated for in Finance Act 2022. The first chargeable period was 1 November 2022 to 31 October 2023 and the tax was payable on 1 January 2024. The rate of the tax was increased, in Budget 2024, from three times to five times the property’s existing base local property tax rate from the next chargeable period ending 31 October 2024.

The Vacant Homes Action Plan, which was launched by my colleague, the Minister for Housing, Local Government and Heritage in January 2023, outlines the significant progress that has been made in addressing vacancy, along with the actions that are being pursued to return as many vacant properties back into use as possible. A range of schemes and supports have been implemented by the Government to address vacancy and bring properties back into use. Initiatives such as the Vacant Property Refurbishment Grant under the Croí Cónaithe Towns Fund, provide financial incentives for people to buy and refurbish vacant properties and sites; while the Repair and Leasing and Buy and Renew Schemes involve the Local Authority leasing or buying the vacant property from the owner to assist in the provision of social housing. The Urban Regeneration Development Fund provides funding for, amongst other things, local authorities to acquire vacant or derelict properties and sites for re-use or sale, and the CPO Activation Programme, launched in April 2023, provides for a planned, proactive and systematic approach by local authorities to bring vacant and derelict properties back into use. All local authorities now have a dedicated Vacant Homes Officer, funded by the Department of Housing, Local and Heritage, ensuring a dedicated focus on tackling vacancy.

With regards to dereliction, I understand the Department of Housing, Local Government and Heritage continues to liaise with Local Authorities on the implementation of the Derelict Sites Act 1990 with a view to improving its effectiveness.

As the Deputy will appreciate, proposals for any potential tax measures must be assessed carefully and need to be targeted and clear in their policy intent. That said, my Department continues to monitor all aspects of the property market, including vacant and derelict properties, and I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of much-needed housing in the State.