Household charge and property tax
Richard Boyd Barrett criticised the household charge and warned that its proposed replacement would unfairly burden ordinary families, advocating wealth taxation instead. The Tánaiste defended the interim charge, noted that over one million households paid it, and said the design of the planned property tax remained under consideration.
Last year, we saw an unprecedented public revolt and mass boycott against the unjust household charge the Government imposed. Faced with that revolt, the Minister for the Environment, Community and Local Government went into hiding for a period but the Government finally admitted that the charge was unfair and unjust and promised something fairer. In recent weeks, it is becoming clear, through various leaks from the Government, that what is proposed will not be fairer. As we who opposed the household charge predicted, ordinary families, even at the low rate of 0.25% of the value of the property which has been leaked, will be paying between €500 and €800 per year in property tax.
With 1.6 million people having less than €100 left when they have paid their bills every month and 900,000 people living on or below the poverty line, including 100,000 children, how does the Tánaiste expect people to pay this charge? Does he not realise that if the Government presses ahead with this tax, hundreds of thousands of families will be pushed into poverty? One cannot get blood out of a stone. Does he not realise that the revolt and protests against the household charge will be nothing compared with the public revolt he will see if the Government imposes hundreds of euro more in austerity taxes on ordinary low and middle income families, the unemployed and people facing mortgage distress? It makes a mockery of the Government's claims that it will protect children if it imposes a property tax that will drive the parents of those children into poverty.
Will the Tánaiste assure the House that he will not impose further unsustainable financial burdens on ordinary families, the unemployed, low and middle income families and people facing mortgage and financial distress?
Comment on this
-----advising householders not to pay the household charge.
More than 1,045,000 householders ignored the Deputy's advice and paid the charge. There are, however, large numbers of people who took the Deputy's advice and who are increasingly finding they have more to pay now than they would have last year if they had not listened to the Deputy and some of his colleagues in the first place.
It was always the case, and the Government made this clear at the outset, that the household charge would be replaced by a property tax. Deputy Boyd Barrett professes to be a socialist and I have never met a socialist who does not feel a property tax should be proceeded with. Can the Deputy tell me if he favours the introduction of a property tax and if he is in favour of such a tax, can he give us the benefit of his guidance on what he thinks would be a fair property tax? The Government is working on this and we would value the Deputy's opinion so let us have it. We have already made clear we intend to introduce a property tax and would value the Deputy's input, instead of him jumping up and own and organising protests about something that has not been introduced. Let us be constructive for a change, let him leave down the picket sign and take up the pen and set out for us his proposals on a property tax and what he thinks would be a fair system. If he is not in a position to tell us now in the House, he could let us know over the course of time so we could have the benefit of his wisdom on the matter.
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The Tánaiste should not insult the people of this country by suggesting that the more than 1 million households that refused to pay the household charge before the deadline his Government set on 31 March earlier this year did so simply because we advised them to do it. They did it because they recognised it was an unjust and unfair charge. As a result of that boycott and revolt, the Tánaiste's Government was finally forced to admit it was unfair and unjust. I want to know, and hundreds of thousands of families across the country want to know, if the system that will replace the household charge will be even worse than the €100 charge that was imposed on them last year. All the indications are that it will be three, four or five times what the Government tried to impose on them last year.
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Could we have a question please? The Deputy is over time; he must put a supplementary question.
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We want to see a wealth tax. This is my question-----
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Why does this Government not levy taxes on those who can afford it rather than continuing to hammer those who cannot? They are hanging on by their fingernails and being driven into poverty because the Government's determination to bail out the banks and protect the super wealthy.
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I am sure the Tánaiste can reply to this himself. He does not need any assistance from any side of the House.
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I will give a little history and accuracy. The commitment to introduce a property tax was contained in the programme for Government and the respective manifestos of the two parties that now form the Government. When the household charge was introduced, we made it clear it was introduced as an interim measure pending the introduction of a property tax. The details of how that property tax will be composed and what it will be based on are a matter that is under consideration by the Government. Again, I invite Deputy Boyd Barrett, or any other Member of the House who has a concern about the property tax issue, to let us know a couple of things. Is the Deputy in favour of the introduction of a property tax and will he let us have his proposals on such a tax? He should set out what it should be based upon and what level it should be charged at. He wants to tax the super wealthy - let us have the detailed proposals and we will consider them. He can outline those proposals in the House or make a submission to us.