Dáil Éireann Debate, Wednesday - 1 May 2013
7. Deputy Jonathan O'Brien asked the Minister for the Environment, Community and Local Government the reason some unfinished estates were excluded from liability for the property tax and some in similar conditions were not. [20493/13]
Amharc ar fhreagraAn exemption from the local property tax applies to developments listed in the schedule to the Finance (Local Property Tax) Regulations 2013. The list of unfinished housing developments eligible for the exemption was compiled by local authorities utilising the categorisation employed for the purposes of the national housing survey 2012. The survey was carried out over the course of summer 2012 by my Department in conjunction with local authorities and the housing agency. The categorisation methodology for the survey was different to that which was used in 2011 and which provided the basis for the waiver from the household charge. That earlier categorisation related largely to the level of on-site activity when the 2011 survey was carried out and had less to do with the physical character of developments. The 2012 survey was based purely and objectively on the actual state of completion of a development, and it identified 1,700 unfinished developments, of which 1,100 were deemed to be in a seriously problematic condition. This represents a 37% reduction in unfinished developments since 2010. Only developments that were deemed by local authorities to be in a seriously problematic condition, regardless of whether a developer was on site, were included in the LPT regulations. For the purpose of preparing the final list of developments to which the exemption from the local property tax would apply, local authorities were asked by my Department to confirm or update the then existing list of estates in a seriously problematic condition as appropriate.
The Minister of State referred to a survey carried out by councils. I understand housing managers in Fingal County Council and Dublin City Council were not consulted. Who carried out these surveys and where did they get their information? There are nearly 100 unfinished estates in Dublin alone but Priory Hall is the only exempted development. Smaller counties have more exemptions than the entirety of Dublin. Something is not adding up. I invite the Minister of State to visit the unfinished Heathfield estate in my own area. Seven estates remain unfinished in my area. In Heathfield, the roads are unfinished, some of the houses are unoccupied and the underground services and boundaries have not yet been sorted out. I cannot fathom how somebody could decide these houses should not be exempt. If they were exempt from the household charge why are they not exempt from the property tax?
I have explained that the lists were drawn up by the local authorities, all of which received a circular on the matter. While I do not know whether the housing managers saw the circular, some competent person would have been tasked with drawing up the lists. Every local authority designates an official to deal with unfinished housing estates and the public can engage with this individual if they have issues with unfinished estates. I presume Dublin City Council and Fingal County Council have designated people to carry out this role.
Deputy Ellis referred to an estate that he believes should have been on the list and described the condition of the estate. I am sure he has seen the list contained in the legislation which sets out the various criteria used to designate estates. It is a transparent process. We asked the local authorities to draw up lists in accordance with the guidelines they were given.
There is limited consistency in the designation of estates. The Minister of State indicated that the survey was carried out by the Department in conjunction with local authorities. Parts of the Rockview estate in Portlaoise lack footpaths but the property tax is supposed to be used to provide footpaths and lighting, which comes from the roads budget in every county council with which I am familiar. It is a question of ring-fencing money. Some €150 million has been taken from the car tax fund this year and moved to the loan account to pay off debts.
I was contacted in regard to four unfinished estates, namely, Bridgemeadow in Enniscorthy and Cluain Aoibhinn, Riverchapel and Aylesbridge in the Riverchapel area. These estates lack open spaces or footpaths and contain a number of unfinished buildings. When I asked the council why they were not included in the list of exemptions I was told that the original survey of estates was completed by the Department of the Environment, Community and Local Government, which then compiled a list of what it deemed to be unfinished estates around the country. The council stated that it has tried to include additional estates it knows to be unfinished but the Department refused to add them to its list. It thus has estates which are not deemed to be unfinished and, therefore, cannot be exempted from the property tax. The Minister of State says the process is transparent but these estates meet the criteria. I do not understand why they cannot be included on the list.
The reality is that the Department has moved the goalposts. It is not logical to suggest that local authorities across the country have experienced a dramatic improvement in the completion rates for these estates. The Minister of State referred to estates which are in seriously problematic condition. Each of us can identify developments in our areas which meet these criteria and where residents are left without footpaths, lighting and basic amenities. They now face the insulting idea of being charged a property tax for local services they do not get. In many cases they are also being charged management fees. There appears to be a discrepancy between what local authorities are telling us and what we are hearing from the Department. Both sides cannot be true.
A number of the Deputies' questions related to finances. Deputy Stanley will be aware that funds were made available for the safety initiative. These funds have not been fully drawn down and they remain available to local authorities.
I welcome that.
Local authorities did not have their money reduced this year. From next year onwards, 80% of the property tax will be retained by the relevant local authority and the remainder will be redistributed fairly. The money will be used for the purposes that Members have suggested, such as completing roads and footpaths, as well as for other local authority needs.
With regard to the argument by Deputies Wallace and Daly that certain estates should have been included, my Department was in contact with local authorities in February, before the list was drawn up, to ensure that the inclusion of estates was finalised by local authorities. They were to identify the estates that fitted the categories concerned.
What happened in Wexford if it is not getting a break? What went wrong?
We cannot second guess local authorities.
Why is there only one estate in Dublin?
Criteria were drawn up on a national basis but we asked the local authorities to identify which estates fitted the various categories, including the seriously problematic category that was included in the exemption from property tax by the Department of Finance.
Can we find out who signed off on the list?
I stated at the outset that we had six minutes for each question. We have spent eight minutes dealing with this question. It is unfair to other Deputies.
I do not know what is happening in Wexford if it is not getting a break. I hope it will do better in the championship.
The Wexford youths won last night.
