Topical Issue Debate

Airport Development Projects

Deputy Michelle Mulherin

I am raising the application that is being made to the European Commission for up to 90% funding for capital works at Ireland West Airport Knock. I want to know whether a special case has been made in that regard and about the timeframe involved. Thankfully, those involved with the airport are developing new transatlantic flights and trying to open that market. For that reason, they need capital investment immediately. The apron and the runway need to be extended to cater for the traffic at the airport. All of this needs to be done to put the airport on a self-financing footing. The airport is of strategic importance because it serves the west and north-west regions and caters for approximately 700,000 passengers each year. In recent years, the authorities at the airport have been explaining the case for the expansion of the airport so that it can grow further. Passenger numbers have been maintained at 700,000. The airport would need to have more than 1 million passengers in order to become self-financing. It wants to grow. It is always on the look-out for more business. It is very dynamic and efficient.

The west is the only region in the country that is not serviced by motorways, high-speed trains, or developed cargo and passenger deep-water ports. It is a peripheral region in Ireland and in Europe. Ireland West Airport Knock is not like any other regional airport. Most of the other regional airports, with the exception of Donegal Airport, are located in the shadows of the State airports - Cork Airport, Shannon Airport and Dublin Airport. Above all, with pride we know and declare that Ireland West Airport Knock is the people's airport and, in this regard, is a different creature from any of the other airports in the State. It is very dear to the people of the west of Ireland, who have personally invested a lot in it. The airport is run by a not-for-profit trust which was asked some time ago to take responsibility for running the airport while stimulating enterprise and jobs. It has a very broad remit. Its broad objective is to bring economic activity and growth into the region. To tell the truth, the region would be lost without the airport.

It is key to our future development. More than two and half years ago, a joint study group involving Ireland West Airport Knock and the Department of Transport, Tourism and Sport completed its in-depth review of the strategic options for the airport. In terms of capital investment, a commitment was given to Knock that 90% funding would be made available for it to carry out these crucial works. It does not want to look for money from the State forever; it wants to be self-financing after 2024. On that occasion last summer, we were told that the regional airports programme had been approved by the European Commission. That is very welcome, but it will only give Knock 75% funding when it needs 90% funding. We were told at that juncture that a further business case would have to be made for Knock. As I have outlined before, this investment is critical to the growth and development of the airport and its future sustainability. I would like to know what progress has been made, because time is of the essence.

I welcome the €600,000 OPEX funding that was announced before Christmas. This will help Knock balance its books for last year and cover operational losses for the year; its operational losses will remain until it can become self-financing. I will briefly restate that Ireland West Airport Knock should not have to compete with other regional airports for funding from the same pot. Knock is in an entirely different league and needs to be recognised. I also suggest that in our national aviation policy, Knock should be given recognition for its strategic importance and should not be treated the same as other regional airports, because it is most definitely not the same.

Minister of State at the Department of Jobs, Enterprise and Innovation (Deputy Sean Sherlock)

I am taking this Topical Issue on behalf of the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, who apologises for being unable to attend this afternoon.

The Exchequer provides funding supports to the four regional airports in Donegal, Kerry, Waterford and Knock under the regional airports programme operated by the Department of Transport, Tourism and Sport. Over the past decade, Knock has received almost €21 million in Exchequer support in operational and capital grants under the OPEX and CAPEX funding schemes administered by the Department.

In August last year, the European Commission gave its approval for the Department's new regional airports programme, which takes account of the recommendations of the Knock study group and the subsequent decision by Government to continue funding supports to the four regional airports. That decision recognised that the regional airports should be given the opportunity beyond 2014 to grow to a viable, self-sustaining position, particularly considering the contribution that they make to their respective regional and local economies. This was also acknowledged in the new national aviation policy that was published last August. The Deputy will be aware that, under new EU state aid guidelines of 2014, the maximum level of aid permissible for capital projects at airports with fewer than 1 million passengers per annum is 75%. The EU guidelines recognise, however, that airports in this category may face difficulties in sourcing the balance of at least 25%. Subject to a case-by-case assessment, an aid rate in excess of 75% may be justified in exceptional circumstances. In such a scenario, the Commission has indicated that a business case justifying any proposed higher aid rate would have to be approved by it and must be able to demonstrate the airport's inability to proceed with the proposed investment at the 75% aid rate. Under a new aspect of the regional airports programme called the public policy remit, all of the regional airports, including Knock, are eligible for grant assistance up to 90% towards the cost of capital investments in the areas of safety and security. There is also a PPR scheme which assists with grants of up to 100% of the operational costs of the airports in these two areas. Last year, under the first year of the new programme, Knock received almost €1.2 million in grant supports from the Department and the latter has already begun engaging again with all four airports on their future requirements for capital grant assistance.

The Minister is, of course, aware that Knock has indicated that it will require a higher grant rate than the maximum 75% permitted under the EU guidelines for certain major capital projects that are planned at the airport over the coming years. The ongoing engagement with Knock continues to address this issue, as well as the funding available to the airport under the new PPR schemes.

Deputy Michelle Mulherin

I am a bit shocked by the Minister of State's response. I cannot believe the Department has not made an application for 90% funding for Knock airport at this stage. A commitment was made two and a half years ago under the Ireland West Airport Knock-Department of Transport, Tourism and Sport study group, chaired by Deputy John O'Mahony, to give 90% funding. Last August, I was somewhat disappointed when we were told that the funding was actually 75% on approval of the regional airports programme by the European Commission with the opportunity to make a special case to seek 90%. I am now told that the conversation is ongoing. There is an idea that the ongoing engagement with Knock continues to address this issue, but it is not being addressed. This is two and a half years down the line. Last summer we were told that a 90% application was required, and the board at Knock airport is ready, willing and able to do whatever is required, including bending over backwards, to get such an application before the Commission.

What is going on in the Department of Transport, Tourism and Sport? I can never seem to get any answers. I have submitted parliamentary questions and freedom of information requests to find out what communication there has been between the Department and the Commission on Knock. It seems there has been very little. I am sad to say that the Minister of State has given another standard-issue answer. Knock is being treated like every other regional airport, but it is not the same. I mean no disrespect to every other regional airport in the country. Ours is the only region that does not have another State airport. It seems to me that this has been going against Knock in terms of its treatment by the Department and has been happening since its inception or conception, whatever one wants to call it. Will the report and agreement signed up to by the Department be honoured? The Department signed up to the 90% at the time. It can say that the European Commission stipulated that 75% could be paid for capital works.

Deputy Sean Sherlock

I note the points the Deputy has made. I do not have an answer to that question, but I am sure departmental officials and the Minister's staff are watching proceedings and I am sure the Deputy will approach the Minister directly on this issue. For the purpose of replying, I will reiterate that I do not think it is a case of ruling out the possibility of 90% funding. I do not think that was explicitly stated in the answer I gave. I will read again from the answer:

In my interpretation of the answer, that does not necessarily rule out the possibility of the potential for 90% funding. I do not have a-----

Deputy Michelle Mulherin

The Minister of State is correct. They have known for the past two and a half to three years that 90% funding is required but they are not doing anything about it.

Traffic Management

An Leas-Cheann Comhairle

Topical Issue No. 2 is on weight restrictions at Kennelsfort Road in Clondalkin in Dublin 22. Deputy Robert Dowds will speak for four minutes.

Deputy Robert Dowds

First of all, I will correct the Leas-Cheann Comhairle. I am talking about Palmerstown, Dublin 20, and not Clondalkin.

An Leas-Cheann Comhairle

I am only reading what is in front of me.

Deputy Robert Dowds

The Leas-Cheann Comhairle has been given factually incorrect information.

I raise this issue in frustration.

The residents of Kennelsfort Road and the surrounding roads in Palmerstown have been fighting this issue for a long time and in more appropriate assemblies than this one. I am raising this for them because of their extreme frustration. The residents there want a 3.5 tonne weight restriction limit imposed on the above cell group of roads for the following reasons. First, all the roads concerned are residential roads not suited to large heavy vehicles. Some are on a hill, especially Kennelsfort Road, which adds to the noise made by large vehicles. Second, a significant number of trucks come off the R148, which becomes the N4 west of the M50, on to Kennelsfort Road in particular. However, the other roads need to be included in the restriction area, because if it only applied to Kennelsfort Road, truck drivers might use the other roads as an alternative and come in off the area called "The Oval." Third, a 3.5 tonne restriction limit would be in line with the 3.5 tonne restriction limit on Ballyfermot Road, Dublin 10, which is, in reality, a continuation of Kennelsfort Road. The only difference is that Ballyfermot Road is in the Dublin City Council area, as opposed to Kennelsfort Road which is under the domain of South Dublin County Council. Fourth, currently Kennelsfort Road has a 7.5 tonne restriction limit which is widely ignored. A 3.5 tonne restriction limit would respect the residential nature of the area. There is one industrial estate up this road but this can be accessed by non-residential roads, such as off the N4 at Liffey Valley shopping centre, along the Fonthill and Coldcut Roads. There are also industrial estates and a prison between Palmerstown and Clondalkin, which are often accessed from Kennelsfort Road. These can also be accessed from the same Liffey Valley N4 exit.

I am raising this because of the extreme frustration of residents at the failure to make progress. For example, in July 2015, South Dublin County Council overwhelmingly adopted a motion in favour of a 3.5 tonne restriction limit at this point. In spite of that, officialdom stands in the way. Officials in South Dublin County Council show no inclination to be of assistance. In addition, Mr. Kieran Kenny, assistant Garda Commissioner, in a letter to one of the residents on 6 January 2016, stated that the 7.5 tonne restriction limit should remain. Even back as far as 1995, a motion calling for a 3.5 tonne restriction limit was passed by South Dublin County Council. Since that time there have been EU directives on noise and trucks. Can the Minister ensure that those directives are not being broken on Kennelsfort Road and the surrounding cell roads in Palmerstown?

Also, it would seem from a parliamentary question I asked that there are no, or almost no, convictions of truck drivers who break the current 7.5 tonne restriction ban. The roads in question were built in the 1950s and 1960s, before the time when traffic calming was considered necessary. What Palmerstown residents have to put up with would not be inflicted on residents in more modern estates. Can the Minister of State please ask the senior Minister to deal with these issues? Otherwise, the residents will be left in continuous frustration.

Deputy Sean Sherlock

I am taking this issue on behalf of the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe. I understand that Deputy Dowds has been very proactive on this issue for quite some time and I thank him for raising the matter.

I understand that the background to this issue arises from the concerns of local residents living in the immediate area in relation to the use of surrounding residential roads by heavy goods vehicles and their wish to see a 3.5 tonne vehicle weight restriction applied to Kennelsfort Road for traffic management purposes. While I cannot comment on the specifics of any weight restriction currently applying to the Kennelsfort Road, decisions in respect of the application of such weight restrictions are entirely a matter for the relevant local authority. In this instance, and based on the intervention of Deputy Dowds, that would appear to be South Dublin County Council, though my script states it is Dublin City Council. The Minister does not have any role to play in such decisions.

However, should South Dublin County Council decide to apply such a weight restriction on Kennelsfort Road, this would be indicated by the use of the appropriate vehicle weight limit sign. The legislative basis underpinning the erection of such regulatory signage is provided for under road traffic legislation with which all local authorities must comply. Also, further details relating to regulatory vehicle weights signage are set out for local authorities in the Department of Transport, Tourism and Sport's 2010 traffic signs manual.

The Road Traffic (Signs) (Amendment) Regulations 2012, SI 331 of 2012, and the Road Traffic (Traffic and Parking) (Amendment) (No. 2) Regulations 2012, SI 332 of 2012, provide the legislative basis for weight restrictions on vehicles entering a road and associated signage. Relevant signage in this regard includes regulatory upright sign RUS 015, which is used in traffic management and road safety issues such as prohibiting heavy vehicles from using residential roads, and RUS 053, which is used in cases of entry restrictions relating to the structural integrity of the road network, including bridges. Sign RUS 015, giving maximum design gross vehicle weight, is used at the entrance of a road and provides that drivers of vehicles whose design gross vehicle weight exceeds the weight specified on the sign are prohibited from proceeding beyond that point except where it is necessary for a vehicle to gain access to, or egress from, premises accessible only from that road. RUS 053 indicates that the driver of a vehicle exceeding the design gross vehicle weight displayed on the sign shall not proceed beyond it. There are no exceptions to this regulation. The entry restrictions associated with traffic signs RUS 015 and RUS 053 apply to all vehicles, including buses, which exceed the design gross vehicle weight specified on either sign. Any decision by a local authority to apply such restrictions would have to take account of whether the road in question is used as part of a bus route.

In conclusion, individual local authorities are best placed to assess the particular local vehicle weight requirements, based on either road safety or traffic management grounds, which should apply to a particular individual road. However, as previously mentioned, if such weight limit controls are applied, local authorities must erect signage that is in full compliance with regulations. The enforcement of road traffic regulations governing vehicle weight limits on any particular public road is a matter for An Garda Síochána.

Deputy Robert Dowds

As expected, I am very frustrated by the reply. I only raised this in the House because of the ignoring of democratically made decisions of South Dublin County Council by a combination of the roads department and gardaí. What are the people of this area to do to have their democratically decided issue addressed? I ask the Minister of State to ask the Minister to write to the Garda and South Dublin County Council to ask them to re-examine the issue in light of the decisions made by the county council itself with a view to trying to meet the needs of the local community in Palmerstown. Do trucks have to show signage giving their laden weight limit at all times? I would appreciate a written reply to these questions.

I asked a couple of questions in my opening address. One was about EU directives on noise and trucks. Can the Minister assure us that those directives are not being broken on Kennelsfort Road and the surrounding cell roads in Palmerstown?

I really do not know what to say to the residents.

They have had this issue democratically decided on at least two occasions by the local county council, yet they are left with no real change. If there was ever anything to encourage people to get out and march on the street, it is a situation in which a democratic decision is ignored.

A Leas-Cheann Comhairle, this is probably the last time I will speak in this Chamber, so I wish to make a couple of comments. First, I thank you and the Ceann Comhairle for your courtesy over the years. I also thank the Dáil staff, who invariably have been kind to me and anybody I brought to the building. I thank the electorate of Dublin Mid-West for electing me and the Labour Party for nominating me. My next comment is somewhat partisan, but I thank the Labour Party and Fine Gael Government for helping to turn this country around. I hope that if it succeeds in being re-elected it will address the issues that still require urgent action, particularly housing and health.

Deputy Sean Sherlock

How do I respond with a negative after that? The Deputy has raised some questions which are on the record of the House. I will endeavour to speak directly to the Minister, Deputy Donohoe, about the specific questions posed. I hope officials in the Minister's Department are listening to this and that they will reply directly to the Deputy. However, I assure the Deputy that I will raise this directly with the Minister, who is currently in the Seanad dealing with the Road Traffic Bill.

I acknowledge the great work of Deputy Dowds and the fastidious and meticulous way in which he has always dealt with issues relating to his constituents. We all hope we will be back in the House. Deputy Dowds has made an outstanding contribution to this House and to the Parliamentary Labour Party. We wish him the best on his next path in life, whatever pathway that is.

An Leas-Cheann Comhairle

I wish to add my support to what has been said.

Deputy Robert Dowds

The same to you, a Leas-Cheann Comhairle. You are standing down after a much longer period in the House.

An Leas-Cheann Comhairle

Thank you. I call Deputy McConalogue on the next Topical Issue.

Farm Assist Scheme Eligibility

Deputy Charlie McConalogue

At the outset, I join the Minister of State, Deputy Sherlock, in wishing Deputy Dowds well in his retirement. I was honoured to serve with him on the Joint Committee on Education and Social Protection. He was a fine member of that committee, on which he brought to bear his experience in the education sector. Indeed, he also brought his experience in life and in the community to bear in terms of his role in, and contribution to, the Dáil. He will be a loss to the Parliament. We come from different perspectives politically and challenged each other at times, but he has been an exceptional parliamentarian and I wish well with whatever he does next. Likewise, a Leas-Cheann Comhairle, I wish you well after a very distinguished career in the Houses of the Oireachtas. I and the Minister of State at the Department of Social Protection, Deputy Kevin Humphreys, will be hoping to have more opportunities to address the House in the future. However, none of us knows whether that will be the case, and we will be battling hard over the weeks ahead.

I thank the Ceann Comhairle's office for selecting this Topical Issue and I thank the Minister of State, Deputy Kevin Humphreys, for coming to the House to respond to it. I will address the issue of farm assist from two perspectives. The first relates to the impact the Government has had through implementing several cuts to farm assist payments over the past three or four years, most notably through the removal of the income disregard. When this Government took office, 70% of what a farmer earns was calculated for the purposes of assessing means for a farm assist payment. Over two years the Government removed that income disregard. Now, every euro a farm family earns is deducted directly from their farm assist payment, thus removing any incentive for production and to work hard. Despite the approach taken by the Government, farm families across the country continue to work hard, because that is their ethic and tradition. They are proud to be hard-working farm families. I represent a part of the country that has a higher number of people on farm assist than probably any other part of the country. There are 1,500 farm families in County Donegal availing of farm assist out of 10,000 nationally. I have seen grown men and women sit across a table from me in very distressed states. They are proud people who have worked hard all their lives but have seen their farm assist payment cut as a result of the changes the Government has introduced, thus putting their families in a situation of penury in which they are wondering how they can continue to operate their family farms.

Alongside this, over recent weeks the approach of the Government has led many farm families to believe that the Government does not want them to continue to operate as farm families and to be assisted in doing that. That approach can be seen in the review forms that have been issued over the last couple of weeks to many farm families in Donegal. Every year review forms have been issued to farm families which basically ask them if there has been a change in their circumstances and, if so, advising them to notify the Department. On this occasion the families have received comprehensive forms asking them to outline all income for the last year. It is a periodic review that is akin to a total review. I worked hard with a number of families to appeal reductions in their farm assist payments in recent months. Having succeeded with those appeals, over the last period of time they have once again received another review form. In this review form they are asked to indicate all income for the previous year, but they are not asked for their expenditure. At the bottom of each page it is stated in big, bold print that the penalty for a false statement is a fine or imprisonment or both. In addition, it is stated at the top of the form that the form must be returned with all documentation within 14 days as otherwise the payment will cease. These farm families feel they are being harassed by the Government and that the Government does not want them to continue availing of the farm assist payment. Will the Minister ensure that all of the farm families who have received these forms will be allowed appropriate time to return the documentation that is sought from them, as much of it will take time to collect? Second, will the Minister acknowledge that these farm families must be supported and reverse the very damaging cuts that have been implemented by the Government?

Minister of State at the Department of Social Protection (Deputy Kevin Humphreys)

I do not wish to be too early in wishing you, a Leas-Cheann Comhairle, the very best, as I believe the election is not to be held until the spring. I am still working out what the interpretation of the Irish spring is, but the daffodils are up in my garden so perhaps the spring is very close. However, I do not wish to make light of the issue the Deputy raises as it is very important.

This Government supports farming families. The farm assist scheme provides support for farmers on low incomes and is similar to the jobseeker's allowance scheme. Farm assist recipients retain the advantages of the jobseeker's allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2016 Revised Estimates for the Department provide for expenditure of almost €85 million on the farm assist scheme, with approximately 8,800 individuals receiving a weekly payment under the scheme.

Changes introduced in the budgets of 2012 and 2013 brought farm assist into closer alignment with the jobseeker's allowance scheme's treatment of self-employed persons. However, it should be noted that farm assist customers continue to receive more beneficial treatment than other self-employed persons as payments received under the agri-environment options scheme or special area of conservation schemes are assessed separately from other farm income. With regard to this income, the first €2,540 is disregarded, then 50% of the balance and related expenses are disregarded, with the balance being assessed as means. The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income and looks at gross income, less any expenses necessarily incurred, from farming.

Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation. I outline in the formal written reply items with regard to the recent flooding, humanitarian grounds and the emergency fodder scheme.

The farm assist scheme must be kept under ongoing review by my officials from a policy and administration point of view. It is important to note that the farm assist scheme remains a flexible payment and that any farmer experiencing lower levels of income or cashflow issues, due, for example, to the recent bad weather, may ask his or her local Intreo office to review the level of means applying to his or her claim. The Deputy mentioned in particular the forms for review of the payment and the provision of an appropriate period to allow people to fill in the forms. As the Deputy has raised it with me, I will look at the forms and see if it is necessary to extend the time for review. I will talk to my officials tomorrow about that to see exactly where we are.

Deputy Charlie McConalogue

It is exceptionally important that the Minister of State talk to the Tánaiste about the deadline being imposed on farmers for the return of the forms. For example, they are being asked for the first time for a total list of all livestock sold and bought over the last year, bank statements for the last 12 months and also final subsidy tallies from the Department of Agriculture, Food and the Marine, which do not come out until February. Naturally, many farmers have been left feeling they have been asked to do something with which it will be extremely difficult to comply. That is on top of the fact that they feel they are constantly getting a message from the Government that it would prefer if they were not availing of the farm assist scheme, which it would like to remove entirely.

As I pointed out, the removal of the income disregard with the change from 70% to 100% has meant that many farm families struggle now to make a living of any description on the family farm. They have to work day in and day out. In some cases, they have to work 50 or 60 hours per week in order to make an income, only to have every euro they make deducted from their social welfare payments, payments that would bring them up to what they would get on unemployment assistance if they were not making any income on the farm at all. It is a scandalous cut that the Government has introduced and its impact is that 41% of farm families have experienced a reduction in their farm assist payments. The cut must be reversed. I ask the Minister of State to go back and discuss it with his Department. It is certainly a commitment my party is making. It is something on which the Department must carry out an impact assessment. Simply put, the Government and, in particular, the Tánaiste do not realise the impact of this cut on so many families.

I thank the Ceann Comhairle for selecting this issue and I urge the Minister of State to ensure that all families who have received application forms are written to and given appropriate time to allow them to respond.

Deputy Kevin Humphreys

I thank the Deputy. The Revised Estimate makes clear the Government's commitment. It commits €85 million to the farm assist scheme, which is significant. The record of the Government in assisting and supporting farmers right across the country is second to none. As we move from recession to recovery, there is an opportunity to review how we can support communities nationally. On the particular issue of the forms, the deadline and the onerousness of the burden of accessing the information, I will speak to my officials tomorrow to determine exactly how difficult it is to comply. I will have that discussion with them tomorrow.

Property Tax Rate

Deputy Dessie Ellis

After much campaigning on the plight of the residents of Longboat Quay, it was thought that they had at least achieved some respite when the Revenue Commissioners wrote to them accepting valuations in the lowest band for their local property tax, or LPT, liability. Last week, however, they were shocked to receive letters from Revenue reversing this decision. Can the Minister for Finance explain why? At the core of the issue are families and individuals who have done nothing wrong but find themselves living in homes that are dangerous. The fact is that the homes are valueless at this point in time. The Revenue Commissioners appeared to have seen sense and adopted a sensible, humane approach by reducing the LPT to the lowest level. Frankly, it was obscene that these families were asked to pay anything, but the Revenue Commissioners at least showed some willingness to use common sense and the flexibility permitted to them to reduce the band. However, the bureaucratic wheels turned and a second letter was sent only this week to the residents.

The language in that letter is shocking. According to it, the letter of 20 November "incorrectly indicated that the declared valuation for your property could be reduced and I wish to apologise for any inconvenience caused". This bureaucratic reply does not address the issue at hand. It is unfair to ask these families or those in similarly affected complexes, such as Riverwalk Court, to pay the local property tax, LPT. To tell them that their bills would be reduced was a welcome step, but that has been taken away by the Revenue letter. This incompetence is stunning.

Leaving all of that aside, we must address the core issue, that is, why people who have been through so much are still being asked to pay a tax that is clearly not set at the value of their homes. There are probably only a few days left in which to fix this problem if the Minister insists that it is a legal issue. Will he confirm that, due to the cynical postponement of the next valuation date for LPT, the residents are stuck in their current band for a further three years? Can the Longboat Quay complex or other addresses be added to the list of estates that are exempt from LPT?

After much campaigning last year on the residents' plight, we have come to this. That they are being asked to pay the full LPT is mad. There should be exemptions in such cases. Previously, there were exemptions. At first, the residents were given the indication that exceptions would be made, but it now appears that this leeway has been reversed. Will the Minister explain the reasons?

Minister for Finance (Deputy Michael Noonan)

I thank Deputy Ellis for raising this issue. The introduction of the LPT formed part of a broader approach to the taxation of property that aims to replace some of the revenues from transaction-based taxes, which proved to be an unstable source of Government revenue, with an annual recurring property tax, which international experience had shown to be a stable source of funding. Stability needs to be at the core of our public finances now and in the years ahead. LPT enables us to achieve the goal of stability in a way that does not directly impact on employment. From the start of its term, the Government has been unwavering in its determination to do everything in its power to protect and support the creation of jobs. Job creation has been the Government's top priority. The LPT, which is a tax on assets rather than employment, will not adversely affect job creation.

The Government decided that the LPT should be centred on the principles of equity, transparency and simplicity and that a universal liability should apply to all owners of residential property with a limited number of exceptions. Limiting the exceptions available allows the rate to be kept to a minimum for those liable persons who do not qualify for an exemption. Deputies will appreciate that reliefs and exemptions have costs that must be paid for and their introduction must be considered only where there is a clear economic and social policy that needs to be addressed. Even with the limited number of exemptions available under the legislation, I understand that exemptions were claimed in respect of some 42,000 properties for the 2014 LPT. The Finance (Local Property Tax) Act 2012, as amended, provides that any property that is in use as, or that is suitable for use as, a dwelling house is subject to LPT.

The current valuation period is 1 May 2013 until 31 October 2019. The period was recently extended from 31 October 2016 on foot of legislative amendment via the Finance (Local Property Tax) (Amendment) Act 2015. This amendment was introduced to give property owners certainty in regard to valuations and to remove concerns that LPT liabilities could rise significantly, particularly in urban areas, as the property market recovered.

The 1 May 2013 declared valuation of any residential property is not affected by subsequent repairs or improvements made to a property or by any increase or decrease in property prices that might occur over the course of the valuation period. The LPT due for any residential property is based on the market value at 1 May 2013. Where structural defects are detected two years later, as happened in the Longboat Quay complex, they may affect the current valuation of the properties. However, they do not change the valuation retrospectively. Therefore, there is no basis in law to reduce the valuation during the LPT valuation period.

I understand that, due to the error to which the Deputy referred, a small number of property owners in the Longboat Quay complex received letters from Revenue indicating that a reduction in valuation was possible. On discovering the error, Revenue immediately wrote to the persons involved apologising for the incorrect information.

Deputy Dessie Ellis

I accept that the LPT was set in May 2013, but that valuation was high and many of the residents in Longboat Quay did not fully understand the problems or know what was about to happen. A large number of them are in a serious situation, have needed to spend money and are going through the inconvenience caused by what has happened at the estate, but the Minister is sticking by the mantra that the LPT is virtually set in stone. Previously, however, there were exemptions. At one stage, for example, houses that were in NAMA or had not been properly taken in charge were exempted. There is a precedent. It would be a small gesture if we were to make exemptions in cases like this one. Simply being told that a letter was issued in error has been a blow to the residents, who believed that there was some hope of relief. Turning around now is very unfair to them.

Come 2019, when the property tax is valued at a new rate, there will be a major change for everyone, not just those in Longboat Quay, because of rising values in the city. This issue will have to be addressed. Previously, the Minister stated that he would consider it when it arose, but that assumed he would be in power. This issue will affect many people because their valuations will be at higher rates than is the case currently.

Deputy Michael Noonan

I will give the Deputy further information. Revenue incorrectly replied to a small number of property owners in the Longboat Quay complex confirming that a reduction in valuation was possible. This was an error and the letter should not have been issued. Revenue only realised the error when further letters were received from a large number of residents of the complex seeking similar treatment. On discovering the error, Revenue immediately wrote to the original persons involved apologising for the incorrect information. Revenue also wrote to the other property owners who were seeking similar reductions to confirm that the valuations could not be reduced. Revenue has confirmed that, as standard practice where an error is made or taxpayers are inadvertently provided with incorrect information, contact is made with all affected parties as soon as the mistake comes to light to apologise in the first instance and to ensure the correct information is quickly provided and clarified as necessary.

Dáil Éireann díospóireacht - Tuesday, 26 Jan 2016