Property tax fairness
Senator Horkan supported a debate on property tax, arguing Dún Laoghaire-Rathdown pays far more but keeps only a small share for local services. He said the charges are heavy for households with large mortgages and high rents, and he praised Senator O'Donnell for raising the issue.
There is a touch of mid-term breakitis and giddiness in the Chamber. I support Senator Marie-Louise O'Donnell's call for a discussion on property tax and to bring the Minister to the House. She and I, along with three other Senators, are all residents of Dún Laoghaire-Rathdown. Although it is the smallest county geographically - it is 5 miles wide and 8 miles long - it generates more property tax than the whole of Connacht.
Comment on this
I will not even talk in hundreds, I will talk in thousands, because the average bill in Dún Laoghaire-Rathdown when it was first estimated was €686. A total of 4% of houses in Westmeath are valued at more than €200,000 but I do not think 4% of houses in Dún Laoghaire-Rathdown are worth less than €200,000, and that generally means not that people are rich but that they have much bigger mortgages and far more debt. We saw figures yesterday showing that 55% of people's income in Dublin is going on rent or mortgages. The cost per head is much higher but it does not mean that everyone living in Dún Laoghaire-Rathdown is necessarily wealthy. The 15% discount on the property charge of €1,000 brings it back to €850. Of that €850, the sum of €200, which is 20% of the original figure, goes to the equalisation fund to fund the 19 of the 31 local authorities that get money from the equalisation charge. The amount of €600 replaces grants that used to exist so-----
Comment on this
-----60% of the money paid in is money that was coming anyway but is not coming anymore from central government as we are paying for it ourselves. Of the €1,000 original charge and €850 net charge, €50 is all the extra money the officials of Dún Laoghaire-Rathdown have to spend on behalf of the people. For every €1,000 levied, even allowing for the 15% discount, which is sometimes derided, although as a councillor I gave such a discount, in the most expensive county in the country, €50 is all that the local authority is left with as extra funding for libraries, swimming pools, traffic lights, footpaths and everything else.
Comment on this
It is important that we would have such a debate. I commend Senator Marie-Louise O'Donnell on raising the issue.