asked the Minister for the Environment if his attention has been drawn to media reports of an interview attributed to his Minister of State to the effect that the Government intended introducing a new domestic rating system; and if he will make a statement on the matter.
Ceisteanna-Questions. Oral Answers. - Domestic Property Tax.
75.
I am aware of the newspaper reports referred to, and of the official statement made on 16 January 1987 by the Government Press Secretary to the effect that no legislation in relation to the introduction of a domestic property tax was being contemplated by the Government at the present time. I would simply add that a domestic property tax is just one of a number of options which merit consideration in the context of possible measures to improve the present system of local finances and that such measures are kept under continuous review within my Department.
I assume the Minister is referring to the Government press statement of January 1988? He referred in his reply to a Government statement of January 1987.
Yes, The Sunday Press of 17 January.
Of this year?
1988.
It is a little confusing. Is the Minister aware that, apart from the several interviews which his Minister of State has given saying that the Government had prepared legislation to introduce some form of domestic rates, the Minister himself has been quoted on a number of occasions in the national press as saying it is the intention of the Government to introduce some form of rating charge in the near future? Can he indicate whether it is the Government's intention to introduce some form of rates on domestic property during this year by way of legislation? Can he indicate whether, if that proposal is to be introduced, it will in some way qualify to be offset against income tax?
The implications that the Deputy puts forward are inaccurate. I never committed the Government to introducing a property tax, or domestic rates, or anything else, for that matter.
The Minister said he had an option.
I made a statement at the Ard Fheis that we would not be returning to rates.
Poll tax.
What I did say was that there was a review going on as to the whole question of local authority funding, and that all these things were being considered as options, including the poll tax, sales tax ——
Put Thatcher in.
——all kinds of measures from the UK and other European countries. I said it was my personal opinion that local authorities, if they were to retain their autonomy and their independence, would have to have a source of income available to themselves to act as developmental corporations.
A change of Fianna Fáil policy.
No proposals have been put by me to Government. I have considered many items and a great deal of work has been done in this area. It would be my intention to put forward recommendations in that area and also have some structural reform in the local authority areas and it is my intention to do that this year.
This year?
Whether it is acceptable to Government is another story. I believe it is nonsense to allow the funding of local authorities to carry on as it is indefinitely. It has not worked well.
If it is the Minister's intention to put forward these proposals this year, would it be his expectation that domestic property owners would be obliged to pay some contributions to their local authorities in the course of this year? Would the actual domestic rate, in whatever form it was to be introduced, apply to 1988?
I could not see that timescale. I could not see the proposal being available for 1988. I would like to disavow the attitude that has grown in some quarters that perhaps there is some question of a certain number of pennies per square foot to apply as a means of raising funds. That is not an option I am considering.
Is the Minister saying we can take it that the statement issued by his Minister of State does not represent his or the Government's policy?
In fact, the Minister of State confirmed that such a tax was not intended as part of the budget and that was recorded by the media. What the Minister of State, Deputy Boland, Deputy Quinn or Deputy Gibbons say outside the House is something I cannot be responsible for but I am telling the Deputy what I said and that is what will live and will last.
The Minister is not responsible for his Minister of State?
He is, and I have no difficulty with him.
That remark is being a little economical with the truth.