Local property tax
Senator MacSharry criticises the Government’s proposed Finance (Local Property Tax) (Amendment) Bill, arguing it contradicts earlier promises that the tax would be affordable.
I am afraid I must continue with a similar theme to that aired in recent days in the House. As Members will be aware, the Government yesterday published the Finance (Local Property Tax) (Amendment) Bill 2013. While I have been stating in recent days that the banks are in denial in the context of dealing with real people's problems, it appears as though the Government is in denial on this issue. Far from the quotations of last September, when the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Eamon Gilmore, spoke of a tax that would be affordable for families, the Minister of State, Deputy Lucinda Creighton, has complained that people should not be punished for their addresses but that square footage and ability to pay should be taken into account. Fine Gael's general election manifesto claimed "an annual, recurring residential property tax ... is unfair". However, in a move that is far removed from that and which missed the opportunity that presented itself with the aforementioned amendment Bill, for which Senator Thomas Byrne rightly called in his statement yesterday, there is further exacerbation of the problem for the 29% of mortgages that are in arrears, for the huge level of unemployment that obtains throughout the country and for the 50% of mortgages that are in negative equity. This measure is not affordable for families and is not linked with ability to pay. This is a tax on everyone in the country and by the Taoiseach's own admission, it will hit middle Ireland most, that is, those who increasingly are being asked to cough up repeatedly. I refer to a couple with two children who, by the end of this year will lose €240 in child benefit, will pay more than €500 between them in PRSI tax and now, on average, will pay between €300 and €500 a year on a property tax that is downright discriminatory. What was wrong with suggestions to impose an additional 3% tax on those with an income of more than €100,000, who frankly, were conditioned for such a hit in the budget? However, as Fine Gael would not have that, the Labour Party was obliged to swallow it. That is wrong. What is wrong with a tax on off-licence sales regarding the cheapest alcohol that is leading to so many difficulties nationwide? These two measures would bring in the same amount of money.
It is not the principle of having to pay a property tax. Of course, that is just in normal conditions, but we are far from normal trading conditions. What we need is common sense at this time. When we are best placed to sustain this kind of contribution we will make it, but until then the people are entitled to the support of the Government and they are not getting it.
I thank you for your indulgence, a Chathaoirligh, in raising a second issue. Yesterday, following the efforts – a little late – in making it a European issue, the horsemeat crisis moved to a different stage. I commend, albeit belatedly, the efforts of the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, in this regard. As I said on RTE last night, I am pleased to see the media today are echoing the calls, the European Union has abdicated its responsibilities in the context of the crisis. Commissioner Borg has said this is not a food safety issue and, therefore, the Commission is not concerned and not triggering its normal reaction to the labelling crisis. That is fundamentally wrong. There are flaws throughout the country. Frankly, I have confidence in this country and the systems we employ in post-beef tribunal Ireland in this context. We have a systemic failure Europe-wide and unless mandatory testing is introduced and enforced by European authorities with clear penalties for those who do not do it, the consumer who is the person that counts most in the crisis cannot be served correctly and it might adversely affect the farming industry and European agriculture, in particular at a time when we are about to embark on serious negotiations for free trade between the United States and Europe.