We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Seanad
‹ Order of Business

Brexit, property tax and chamber procedure

Summary

Senator Gallagher warned that Irish business is unprepared for Brexit, and Senator McDowell raised concerns about the local property tax and its impact on homeowners. The Chair intervened on procedure several times as Members argued over amendments and speaking order.

I would like to again raise the issue of Brexit. Recent evidence that has emerged from the Irish Exporters Association clearly shows Government inaction in regard to preparing Irish business for what lies ahead. The Irish Exporters Association has described business as "woefully unprepared for Brexit", which is very worrying and is something the Government would need to sit up and take notice of. The Irish Exporters Association has made several suggestions, all of which appear reasonable, such as increased investment in infrastructure such as broadband, which it describes as "embarrassing", upskilling of SMEs and the development of new trade links.

There seems to be a gap between what businesses need from Government and what is actually being provided. It is clear we need to open up new markets to deal with the post-Brexit situation. It is worrying that the small sum of €4.6 million is all the Minister, Deputy Donohoe, has allocated towards business this year to deal with this threat. This means the IDA, Enterprise Ireland and Bord Bia combined will receive a total of €4.6 million to deal with what most commentators say is the greatest economic threat ever to hit this country. Businesses, particularly those in the Border area, feel very exposed and let down.

It is clear there is a major issue. I ask the Leader to use his good offices to ensure the Taoiseach and his Cabinet are aware of the suggestions of the Irish Exporters Association and that the threats it clearly indicates exist are acted upon as a matter of urgency.

Comment on this

I raise on the Order of Business for the second time the impending major disaster for many Irish homeowners, particularly in the Dublin region, of the consequences of the increase in the local property tax. It is about to go up by some 50% and the European Union is now proposing that we should accelerate the revaluation.

Comment on this
David P.B. Norris Senator David Norris Independent

It is rack-renting.

Comment on this

I want to make one point. There could be two families, one of whom lives in a small red-brick terraced house somewhere between here and Ringsend, for example, and who could have a 90% mortgage on a house which cost them between €450,000 and €500,000. The other family could live in a 6,000 sq. ft. restored Georgian or Victorian villa in the midlands and, based on the property price website I recently looked at, they would be liable for the same amount. The family in Ringsend, as I said, might have a mortgage of 80% or 90% on their house whereas the family in the midlands might have none and might also have a farm of 300 acres but would contribute the same amount as the family in Dublin to their local authority. The unfairness of all of this is that the tax does not in any sense reflect the actual wealth of the owners, in particular if there is a 90% mortgage.

The second point is that there is a way to deal with this, that is, to provide for a different system of valuation and banding of houses in local authority areas so that, if one does live in a very substantial house outside Dublin, one should pay more to the local authority, and if one has a very large farm, one should pay more to the local authority than a family in Dublin in those circumstances.

When it comes to defraying the cost of local government in Ireland, the family living between here and Ringsend might have as their principal breadwinner a man or woman who is also renting office accommodation or some kind of workplace in Dublin, and they might be paying up to €900 on their home and €2,000 in commercial rates, whereas the couple living in the large place in Longford or Laois might be paying only €900 to their local authority. This is unfair.

One local authority that has only raised €2 million in local property tax, LPT, from its residents and has received €7 million in transferred money from Dubliners actually voted to reduce its LPT rate by the 15% to which it was entitled. That is grossly unfair. The situation is a ticking time bomb. It is on the front pages of today's editions of the Daily Mail and the Irish Independent. The time has come for us to address this unfairness. People in different parts of the country are being treated unequally and people who are of modest means and who struggle to make a living in this city are being treated unfairly compared with people elsewhere. The Minister for Finance or the Minister for Housing, Planning, Community and Local Government, Deputy Coveney, or whoever assumes responsibility for LPT in its present form should be called before the House to address the issue.

I second the amendment to the Order of Business proposed by my colleague, Senator Boyhan.

Comment on this
Denis O'Donovan An Cathaoirleach Fianna Fáil

I do not believe that there was a formal proposal from Senator Boyhan.

Comment on this

I took him to be proposing an amendment.

Comment on this
Denis O'Donovan An Cathaoirleach Fianna Fáil

He asked that the Minister attend,-----

Comment on this

No amendment.

Comment on this
Denis O'Donovan An Cathaoirleach Fianna Fáil

-----but he did not move an amendment to that effect.

Comment on this
Denis O'Donovan An Cathaoirleach Fianna Fáil

The Senator cannot speak again. I am sorry but I was listening carefully because I expected an amendment to be moved. None was, though.

Comment on this

Maybe some other colleague might-----

Comment on this
Denis O'Donovan An Cathaoirleach Fianna Fáil

I cannot allow Senators to speak twice to say that they should have done this or that. My apologies. I call Senator Colm Burke.

Comment on this
David P.B. Norris Senator David Norris Independent

What about me?

Comment on this
Denis O'Donovan An Cathaoirleach Fianna Fáil

The Senator had not indicated but this is a priority, so I will allow the other Senator in as soon as possible.

Comment on this