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Seanad Éireann debate -
Wednesday, 9 May 2012

Vol. 215 No. 5

Adjournment Matters

Property Tax

I welcome the Minister to the House and thank him for his recent visit to Ballaghaderreen. He was well received by the Western Development Commission. When one is the bearer of good news, one is much appreciated. I thank the Minister for visiting the fire station and recognising the memorial on display for the firemen who died in the events of 11 September 2001.

The issue I want to discuss concerns the non-principal private residence charge, introduced by the last Government. When it was introduced, it was not meant to cover circumstances it is covering at present. There are thousands of small shops, businesses and pubs throughout the country whose owners were led to believe in 2009 that if they paid rates, they would not have to pay the second home property tax. Since the recent debate on the household charge, many shop owners and small businesses have been asking questions, on foot of their uncertainty, as to whether they are liable for the €200 charge. When they made contact with the local authorities, they were told they do not owe €800 but as much as €2,200 because of the accumulation of interest and penalties. In most cases, the people affected are shopowners who have built a house in the country and who have paid the property charge on that house. All they are left with is unused overhead accommodation. I have no issue with cases where overhead accommodation has been converted to apartments and flats that are being rented out. One should be liable in that instance. In many cases, however, the premises are just disused accommodation. Naturally, it cannot be rateable property because most businesses are already stretched paying rates for the downstairs parts of the buildings. People certainly cannot afford to have the whole property attracting rates. In most of these cases, access to the overhead accommodation is through the shop. How such a property can be considered a second property has me baffled. In many cases, most of the owners cannot afford to do up the properties to rent them.

Many may reluctantly pay the second home property tax, bearing in mind that they never believed they were liable in the first instance. I ask for an amnesty in respect of the interest and penalties for those who did not realise they were liable in the first place. I am not asking for an amnesty for those who simply will not pay. There are many genuine cases, however.

In 2009 and 2010, county council staff were not always sufficiently educated on the second home property tax. In many cases, they told business people such as those I described that they were not liable. Naturally enough, they did not pay as a consequence. I am familiar with one such case, that of a publican who lives in the country some two miles from her pub. I brought this matter to her attention during the week and she could not believe what I was suggesting.

Could the Minister not give control back to county councils such that they could account for genuine cases where people did not realise they were liable for the charge? The councils, in such cases, could collect the €800, which is vital, as opposed to expecting people to pay €2,200, which they simply do not have and will not pay. Will the Minister organise an amnesty in this case? I ask him to amend the legislation to account for ratepayers. At present, there is no exemption for ratepayers listed. It was never meant to be the case that the scenario I describe would arise. The Minister is a fair man and I expect him to give me a fair response.

I thank the Senator for raising this important matter for debate. The Local Government (Charges) Act 2009, as amended, broadened the revenue base of local authorities by introducing a charge on non-principal private residences. The charge is set at €200 and liability for it falls, in the main, on owners of rental, holiday and vacant properties. The charge on non-principal private residences, since its introduction in 2009, has contributed €218 million to the financing of vital local authority services, including fire and emergency services, planning and development services, the maintenance and cleaning of streets, street lighting, public parks, libraries, open spaces and leisure facilities.

There is no obligation on local authorities to issue notifications or invoices regarding the charge. It involves self-assessment. Nationwide advertising has taken place each year since the introduction of the charge in 2009 to ensure general awareness of the charge and the liability dates, and this has been successful. In tandem, local authorities have undertaken their own advertising campaigns locally. Communications have also been issued to persons who paid the charge in respect of previous years reminding them of their possible liability for the charge.

Significant efforts are being made to ensure property owners are aware of the charge and the liability dates. However, the charge is based on self-assessment principles and it is a matter for persons with a liability to pay the charge by the due date to avoid late payment fees. Payment of the charge within the three month period ending on 30 June discharges the liability to the charge and ensures late payment fees do not arise.

The Act places the charge on non-principal private residences under the care and management of the local authorities, and its application in particular circumstances is a matter for the relevant local authority. Interpretation of the legislation is a matter for legal advice in individual cases and ultimately a matter for the courts. This is not what Senator Kelly is contemplating.

I have no proposals to provide an amnesty from payment of the non-principal private residence charge. I issued guidelines to local authorities on 14 March on the operation of the care and management provisions of the Local Government (Charges) Act 2009 in the context of individual situations where genuine hardship in having to discharge a liability in a single payment can be demonstrated. In such cases the guidelines are set out and the modality has been agreed for local authorities to enter into payment arrangements for the discharge of outstanding liabilities in instalments over a specified period of time. The local authorities already have information that can stop the clock on the payment of interest and fees. A person can pay the original amount and enter into an arrangement to pay the remainder by instalments. Each county and city manager has been asked to do this in as simple a format as possible.

Providing clarity regarding liability for the second home charge is ultimately a matter for the local authority manager. The Act is specific in putting the onus for care and management on the local authority manager to allow discretion where there are genuine cases. If the property is not habitable, there is no liability, but this must be proved to the satisfaction of the local authority manager. I ask the Senator if he is aware of genuine cases to discuss them with the local authority manager. There is also flexibility in the payment arrangements, but I am not in a position to grant an amnesty.

I appreciate the Minister's efforts on 14 March to make things a little easier for people. In fairness, I would not have thought many of the people who find themselves in this position would know this facility was available to them and I would be glad to announce it. I would like the Minister, however, to consider an amendment to the legislation in the longer term. The property being habitable is the core of the issue. It might be habitable if an investment was made. In the case of the small shop, where the accommodation cannot be accessed unless a person goes through the shop, it could be considered habitable.

For the purposes of the owner.

We cannot rehearse the debate.

My point is that it cannot be considered to be a second property for rental purposes because it cannot be accessed without going through the shop. I know the Minister is a fair man and that this is a common-sense issue, but the Government would be doing itself a favour in cleaning up another mess left by the last Government. I appreciate the response and thank the Minister for his efforts so far. Perhaps we might revisit the issue on another day.

In the case mentioned it could be interpreted that the property is not habitable on the basis that access is only possible with the assistance of the owner of the property who happens to be a shopkeeper. If that information was brought to the attention of the local manager, the case could be made. Local authority managers are fair-minded people and if a genuine case is made, I am sure they will look at it in keeping with the spirit of the legislation. All of the anomalies will not be resolved until we have a fully fledged property tax regime in place in 2013. I am not in a position to solve these difficulties in 2012 and must leave it in the care and management of the local authority manager to exercise common sense in dealing with genuine cases.

Leibhéal Foirne Scoileanna

Táimid ag leanúint leis an téama céanna a bhí againn an tseachtain seo caite agus tá mé thar a bheith buíoch don Aire Stáit as ucht teacht isteach.

Táimid fós ag caint faoi na scoileanna beaga tuaithe agus an próiseas achomhairc a bhí ann mar gheall gur athraíodh na huimhreacha sa cháinfhaisnéis. Tá roinnt scoileanna tar éis iarraidh orm an cheist seo a chur maidir leis an gcoiste achomhairc a bhí i bhfeidhm. Tuigim gur coiste neamhspleách a bhí i gceist ón fhreagra a thug an tAire Stáit féin dom an tseachtain seo caite. Chuir mé ceist faoin iarratas ar an achomharc a dhéanamh trí mheán na Gaeilge. Teastaíonn ó roinnt scoileanna fáil amach cé atá ar an gcoiste agus an bhfuil Gaeilge acu chun na hachomhairc a cuireadh isteach a léamh agus a thuiscint nó an é gur aistríodh go Béarla iad? Ní raibh sin soiléir.

Bhí míshástacht i measc cuid de na scoileanna a chur isteach litreacha i nGaeilge mar fuair siad freagraí i mBéarla ón Roinn. Níl sin sásúil d'aon duine. Sá chás áirithe a chonaic mé féin, bhí cuid den iarratas i mBéarla chomh maith mar sin b'fhéidir gurb é sin an fáth, gur úsáid siad an leithscéal sin.

I ask the Minister of State to make a statement on the committee which has undertaken the review process which is independent of the Department and its capacity to do its work through the medium of Irish and whether the review documents submitted by the schools in question were translated in order that those sitting on the board could understand their contents.

Tá mé ag tógáil an ghnó seo thar ceann mo chomhghleacaí, an tAire Oideachais agus Scileanna.

I thank the Senator for giving me the opportunity to talk about the staffing appeals process for primary schools. The key factor for determining the level of staffing resources provided at individual school level is the staffing schedule for the relevant school year and pupil enrolments on 30 September. The staffing arrangements in schools for the 2012-13 school year can also be affected by changes in enrolment, the impact of budget measures and the reforms to the teacher allocation process. The reform of the allocation process is designed to bring about a more equitable distribution of existing posts between schools; therefore, there will inevitably be some schools that will lose posts and some that will gain posts.

The staffing schedule for the 2012-13 school year was published on the Department's website and includes an appeals mechanism for schools to submit an appeal under certain criteria to an independent appeals board. Details of the criteria for appeals are contained in Department Staffing Circular 0007/2012.

As part of the new staffing arrangements, the Department has expanded the existing appeals process in order that it is accessible to the small primary schools that are losing a classroom post as a result of the budget measure and enable some limited phasing arrangements for schools where the combination of budget and reform measures impact in a particularly adverse manner on a school's overall allocation. All appeals submitted to the primary staffing appeals board, including those in Irish, were considered in accordance with the published appeals criteria. This was done at its meeting on 18 and 19 April. Two members of the appeals board are former school principals, while one member is a former inspector. Each of these three members has competency in Irish on the basis of his or her qualifications and experience in primary schools. In advance of appeals board meetings, the Department also arranges for appeals forms submitted in Irish to be translated into English. The board operates independently of the Department and its decision is final.

A total of 367 schools submitted appeals to the appeals board and 205 schools had their appeals upheld. A summary outcome of the appeals has been published on the Department's website and individual schools have been notified of the outcome of their appeals.

The next meeting of staffing appeals board is due to be held on 14 June. The latest date for other schools to submit appeals is 1 June. The final staffing position for all schools will ultimately not be known until the autumn. At that stage the allocation process will be fully completed and all appeals to the staffing appeals board will have been considered.

Is mór an faoiseamh é a chloisteáil go bhfuil triúr de na daoine a bhí ar an gcoiste líofa sa Ghaeilge. An féidir leis an Aire Stáit tuairim a thabhairt maidir le líon na n-iarratas a bhí trí Ghaeilge agus cé mhéad acu a aistríodh? Is there any indication how many of the 367 school submitted appeals as Gaeilge and how many had to be translated?

I do not have the figure to hand but if the Senator wishes to e-mail me, I will endeavour to discover the information.

School Transport

I welcome the Minister of State, Deputy Ciarán Cannon, to the House. Some weeks ago a group of students from Killaloe visited Leinster House on their own initiative. While such groups are often invited by Members and other public representatives to visit the Houses of the Oireachtas, these children took it upon themselves to write to the Superintendent requesting a tour. During my meeting with them, those from the Clonlara area who are attending St. Anne's community college in Killaloe expressed concern that the bus service which traditionally brings students from that area to and from Killaloe is to be discontinued next year, if not for all students then at least for those commencing at St. Anne's next September.

Most schools in Limerick city, especially in the Clonlara area, are suffering severe overcrowding. As a consequence, many families send their children to Killaloe, which is quite close to the city, where they have a chance to partake of their education in an uncrowded environment. That practice has been customary in this area of south-east Clare for many years. I ask the Minister of State to be flexible in his assessment of the school transport arrangements in respect of St. Anne's community college in Killaloe next year and to take into consideration local customs that have continued for many years. The Minister of State is very accommodating in general and always endeavours to find common sense solutions, as I am sure he will do in this case.

I thank the Senator for raising this matter. School transport is a very significant operation managed by Bus Éireann on my Department's behalf and covering more than 82 million km annually. In the region of 113, 000 children, including more than 8,000 with special needs, are transported in approximately 4,000 vehicles every day to primary and post-primary schools throughout the country. The current system for determining eligibility for school transport at post-primary level has been in place for more than 40 years. In 1966, when the Government announced the introduction of free post-primary education, the country was divided for planning purposes into geographic districts, also referred to as catchment areas, each with several primary schools feeding into a post-primary centre with one or more second level schools.

The definition of school transport catchment boundaries has been the subject of many submissions and representations to the Department over the years, with a widely held view that the current boundary areas do not reflect changed demographics. Changes in the post-primary school transport scheme were announced in budget 2011. One of these, which will take effect from the commencement of the 2012-13 school year, means the use of the catchment area system as a means of determining school transport eligibility will cease for all pupils newly entering a post-primary school. This change is not being introduced until this September, some 20 months after the budget announcement, to allow parents of children newly entering post-primary school ample time to consider their school choice options, taking account of the revised school eligibility arrangements. From this date, school transport eligibility for all new pupils entering a post-primary school will be determined simply by reference to the distance they reside from their nearest post-primary education centre, having regard to ethos and language. In general, eligible pupils who currently avail of school transport and who meet the distance criterion of 4.8 km will retain their eligibility for the duration of their post-primary education, provided there is no change in their current circumstances.

The closing date for receipt of school transport applications for the 2012-2013 school year was Friday, 27 April 2012. Bus Éireann has advised that only three new pupils from the Clonlara area had applied for school transport to St. Anne's community college, Killaloe by this deadline. Pupils who are not eligible under the post-primary school transport scheme may apply for transport on a concessionary basis in accordance with the terms of the scheme. To reiterate, the mechanism whereby it will be determined whether children are entitled to a school transport service to a particular school is changing this September. I expect that change to be for the better, there being a reasonable and sensible rationale behind it. It will make the operation of the scheme much more streamlined. The budgetary decision taken in 2011 concluded, on the basis of a value for money report, that it would save the Department money. It will also make it easier for parents to identify the post-primary school in respect of which their children are entitled to a transport service. There is no doubt that difficulties will arise throughout the State, as they have done in my constituency in east Galway, in Donegal and elsewhere. However, once all these issues are ironed out, I am confident the new arrangements for transporting children to their nearest school will prove far more beneficial and effective.

I thank the Minister of State for his reply. I agree that the end result of the changes he has outlined will be a far better and more streamlined system. There seems to be a ray of hope for the three children from Clonlara who wish to attend St. Anne's community college in Killaloe in September 2012 in the context of the concessionary travel system to which the Minister of State referred. Will this effectively function as an in-built appeals process, so to speak?

To clarify, the children from the Clonlara area who are attending school in Killaloe will be allowed to complete their studies and to access school transport until such time as they complete their leaving certificate. If there are sufficient children from Clonlara in that situation, we are obliged to provide a transport service for them. Moreover, if seats are available on the service, the children who plan to commence study in Killaloe next September will have access to those concessionary seats. While this arrangement could not be described as an appeals process, it is certainly an opportunity for children who are beginning their education in Killaloe next year to avail of the service, where seats are available. The price of a concessionary ticket is the same as that of a standard ticket, so there is no added expense. I am confident this concessionary option will allow many children in locations throughout the State to continue to access transport to the school of their choice until such time as this existing cohort works its way through the school system.

The Seanad adjourned at 7 p.m. until 10.30 a.m. on Thursday, 10 May 2012.
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