Dáil Éireann Debate, Thursday - 25 October 2012
138. Deputy Shane Ross asked the Minister for the Environment, Community and Local Government if rates are formally introduced if both the household charge and the second residence charge will be abolished; and if he will make a statement on the matter. [46856/12]
View answerThe development of a system of local government funding which is fair, stable and effective and brings greater local responsibility in relation to financial matters is an essential feature in the reform programme for local government. The EU/IMF Programme of Financial Support for Ireland contains a commitment to introduce a property tax for 2012. The Programme reflects the need, in the context of the State's overall financial position, to put the funding of locally-delivered services on a sound financial footing, improve accountability and better align the cost of providing services wit h the demand for such services. It was considered that, in light of the complex issues involved, a Local Property Tax would take time to introduce and accordingly to meet the requirements in the EU/IMF Programme, the Government decided to introduce a Household Charge in 2012 as an interim measure. This was done via the Local Government (Household Charge) Act 2011.
An independently-chaired Inter-Departmental Expert Group was established to consider the structures and modalities for an equitable Local Property Tax to replace the household charge. The Expert Group’s terms of reference were to consider the design of a Local Property Tax to be approved by Government, which is equitable and is informed by previous work and international experience. The Group submitted its report to me and proposals will be brought to Government as soon as possible. It would not be appropriate to comment on the content of the Expert Group’s report at this point, pending Government’s consideration of the report and the associated issues. It will then be a matter for the Government to decide on the exact details of implementation, including considerations related to the Non Principal Private Residences Charge, taking into account the modalities involved. The Government has decided that the Local Property Tax will be collected and administered by the Revenue Commissioners.
