asked the Minister for Local Government if he will introduce legislation to have rates struck on the income of the owner of the property rather than on the valuation of his property.
Ceisteanna—Questions. Oral Answers. - Striking of Rates.
10.
In the 14-point plan announced before the last general election, the Government stated that "rates will be reduced drastically by transferring health charges and housing subsidies to central taxation and will be replaced progressively by a form of taxation related to the ability of persons to pay." On 30th March last, the Government announced that, as an initial step in a phased transfer of the cost of health and local authority housing services from local to central taxation, the Exchequer would bear the full increase in the cost of these services as between 1972-73 and the present financial year and, in addition, 25 per cent of the cost of these services to rates in 1972-73. The effect of this decision has been such that this year, for the first time in many years, rates in most areas are less than they were in 1972-73 and in many areas the reduction has been significant.
The question of relating local taxation to the ability of persons to pay, which is referred to in the second part of the Government's statement of intent on rates, is at present under examination in my Department. All relevant aspects including that referred to by the Deputy will form part of this examination.
Is the Minister aware of the unjust form of rates and taxation whereby a house standing on a very small bit of land, maybe 20 acres, is valued and rated the same as one standing on 200 acres? I think Deputy Dr. Gibbons' question relates to the ability of the business being carried on, either farming or anything else, to pay and it is on that basis it should be valued and rated.
I can assure the Deputy every effort will be made to give a fair deal to those who are paying rates and who are unable to pay rates.
Would the Minister agree that the suggestion that a fair rate has been struck as between householders and others is not borne out by the facts? On the contrary, the rate is in favour of occupants and owners of office blocks and prestige buildings of that nature.
No. Fianna Fáil have been trying to sell that through the country since the last general election and it has not done them any good.
Will the Minister not agree that the same alleviation of the burden of rates has not been afforded to householders as has been afforded to owners and promoters of office block buildings?
No. I think Deputy Lynch is mixing things up a bit.
(Interruptions.)
I have been asked a question and perhaps Deputies would await the answer. I know they will not like it. The position is that those who have been paying rates on office blocks and business premises, if they save anything that saving is taken off them in another way, and Deputy Lynch and Deputy Colley who smile, know that this is so, while people under the Fianna Fáil scheme who owned small business premises and lived on these premises would have had to pay the full rate if Fianna Fáil had got back.
Deputies
No rate.
Would the Minister not agree that owners of office blocks and other substantial buildings of an industrial or other nature can claim income tax allowance on the rates they pay on these buildings while the ordinary householder has no rebate in that respect?
No. I think Deputy Lynch would want to look up the facts and, if he does, he will find out that what he says is not correct at all.
Question No. 11 postponed.