Household charge payment deadline
Michael McGrath urges extending the deadline, permitting instalments and waivers for those unable to pay, citing misinformation and pressure on families. Brendan Howlin says the charge is legally required to fund local services and urges households to pay by Saturday as part of the State’s recovery strategy.
I am sure the Minister for Public Expenditure and Reform, Deputy Howlin, will agree that the vast majority of Irish people are law-abiding citizens. The fact that, with less than three days to go, more than 1 million people have yet to pay the household charge is a measure of the shambles the Government has made of this whole affair. Since the Government forced the charge through in its present form last December the communications strategy and political handling of this tax has been a disaster. Even Ministers have publicly conceded that mistakes have been made. The Minister for the Environment, Community and Local Government, Deputy Hogan, has apologised in private to his Fine Gael parliamentary party colleagues but has not done so in public to the people.
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Did you miss the meeting, Anthony?
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The Government has refused point blank to allow a waiver for people who have a genuine inability to pay.
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There would be no charge if you had not destroyed the country.
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They were looking for the Minister in Mullingar yesterday.
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There was a fellow calling to pay his bill but the Minister was not home. He had the €100 but the Minister was not there.
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Do you think we live in a parallel universe?
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The Government refused point blank to allow a waiver for people who have a genuine inability to pay. Since then people have been given the wrong information and been threatened, and genuine concerns have been dismissed out of hand. Ministers have taken to the airwaves and publicly contradicted each other about the role of An Post. People have been threatened that a council official would knock on their door to collect the tax and that income tax will rise if the charge is not collected. We now have confirmation from Active Retirement Ireland and others-----
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One would think you were responsible for nothing. Incredible.
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-----that fraudsters are knocking on the doors of vulnerable elderly people throughout the country, looking for the €100 charge-----
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-----all because of the Government's threat. The deadline for paying this charge by instalments passed at the end of February, at a time when awareness of the charge was much less than it is today. There are many thousands of ordinary people who simply do not have access to €100 between now and Saturday night.
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Is it not the case that the only thing preventing people being allowed extra time to pay this charge is the stubborn political pride of the Minister, Deputy Hogan, and this Government?
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Is the Government really going to force fines and penalties on more than 1 million ordinary people? Irish people are reasonable and fair-minded. Will the Minister take the heat out of this situation, extend the deadline for the payment-----
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-----allow people to pay through their local post office and allow them to pay by instalments in accordance with the means they have?
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The Deputy opposite is his party's spokesperson on finance so he is uniquely well-placed to understand the economic situation this country faces. He also understands we are dependent to fund day to day services on an arrangement entered into by the previous Administration with the troika. Under that agreement we are obliged this year to have a household charge. We will migrate to a more refined household charge for next year.
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That work is already underway. We are obliged, however, to have the money this year.
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You will not be getting it.
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Given the focus and controversy there is probably no household in the country that is unaware this charge is due. People know there are three ways in which the charge can and should be paid by the deadline of Saturday.
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Half a million households have already paid. I ask Deputies on all sides of the House not to play party politics with this. This is part of the survival strategy for this country.
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There is a requirement for local government to fund its normal services and for €160 million to be raised. The local government fund requires the household charge this year in order to meet that figure.
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Wherever there is a shortfall and whenever a Deputy or somebody who is obliged to pay does not that will impact on the quality of local services.
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I ask Deputies in this House-----
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-----to accept there is a legal requirement on households to pay €100. I know it is an imposition. I know the pressure households feel. The Deputy opposite knows full well, however, the economic catastrophe-----
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In theory, the Minister knows that but not in reality. He is out of touch.
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-----this Government inherited. We need to broaden the tax base beyond the narrow focus on taxing income alone in order to restore a solid income base that will ensure local and ordinary services continue to be provided for the people who need them.
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Take the medicine.
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The Minister acknowledged the need to broaden the tax base. Implicit in that is acceptance by the Government that this must be done. The Minister consistently highlights the Government's negotiating skills with the EU and the IMF but at no stage has this Government sought to renegotiate the household charge or the property tax.
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It should be honest with the people and at least acknowledge that fact.
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I am only too well aware of the situation of the national finances. The important thing in that regard is that the €160 million pencilled into the budget to come from the household charge be collected over the course of 2012, not by midnight on Saturday. By imposing these strict terms and conditions in this manner the Government is placing enormous pressure and stress on ordinary Irish families, many of whom simply do not have access to €100 between now and midnight on Saturday. Is the Government really going to impose fines and penalties on more than 1 million people if they genuinely cannot come up with €100 between now and Saturday night?
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Is Deputy McGrath for or against it?
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The Minister must acknowledge that he has not managed to bring the people with him on this issue. For once, he should eat some political humble pie. He has already acknowledged mistakes in the budget in respect of cuts to people with profound disabilities and should acknowledge that the way this has been handled is also a mistake. The deadline should be extended and people who genuinely want to pay should be given the opportunity to do so. They should be allowed to pay by instalments.
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I listened to Deputies, including those on this morning's radio programmes, who indicated they are in favour of a property tax, just not this one.
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This is a household charge.
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Whatever property tax is devised, it will be opposed for-base political reasons. Deputy Michael McGrath's party agreed with the troika to have a site valuation tax and this is the first step in doing so. It is a flat rate tax and it needs to be nuanced. We are working on that. It could not be done in any other way this year.
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It is a poll tax.
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Deputy McGrath referred to it being done in the course of this year. Local authorities need certainty on their funding and there is no point in telling them their allocation-----
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The Government withdrew funding from local authorities.
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The Government withdrew funding from local authorities.
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Tell him not to be bullying people.
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I get complaints every morning about the behaviour in this Chamber from people viewing proceedings of the House. No one who shouts and roars is impressing anyone. I ask Members to allow others to have their say.
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The Ceann Comhairle should look to the other side and should not be looking over here all the time.
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There are Deputies opposite who will support no tax, no charge and no cut. It is Darby O'Gill economics by which people will not be fooled.
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What about a wealth tax?
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People want this economy to recover and they know the path to recovery is a hard path. They will not be fooled by people pretending we can fund local government with magic money. The final point is that we need certainty on this funding.
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The Government should send big Phil to China.
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I ask everyone in this House and those who are obliged to pay this household charge to use mechanisms available between now and Saturday to pay the charge in solidarity with the 500,000 households who have paid, many of whom are not in a great position to pay but know their duty is to pay the charge. I ask people to do so.
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Have Government Members all paid?