Distribution of Local Authority funds must be fair and proportionate to revenues collected.

Speaking on the Finance (Local Property Tax) Bill 2012 this afternoon (Friday) in the Dáil, Fine Gael Dun Laoghaire Deputy, Mary Mitchell O’Connor, said the introduction of a property tax, while unpopular, will ensure that the tax base is broadened and that taxes on jobs are kept as low as possible. Deputy Mitchell O’Connor said that she will be raising the distribution of Local Authority funds with the Minister for Finance, Michael Noonan TD, to ensure that the amount of funds delivered reflects the revenue collected.

“The Government has sought to introduce this tax in as fair and equitable a manner as possible. Owners of the most valuable property will pay the most, with houses that are valued at more than €1 million being charged at the higher rate of 0.25%. Dun Laoghaire-Rathdown, I expect, has one of the highest concentration of expensive houses in the country and having visited many of these homes, I know that a big house is not always an indication of ability to pay. This proposed tax attempts to address the needs of all people through a series of deferral arrangements, which allow the tax to be paid when people are in a better position to do so.

“When it came to the Household Charge, Dun Laoghaire had one of the highest rates of payment. With this in mind, I will be lobbying to ensure that the constituency gets its fair share of Local Authority funding coming from the property tax. The Thornhill Report suggested a 65% return to county, based on the revenue collected. I believe that counties that have not paid their fair share should not get the same rewards and I will be taking this issue up with Minister Noonan.

“No matter what way you dress it up, Ireland has to close the budget deficit, take back control of our financial destiny and get out of our Programme of Assistance. The introduction of a property tax is without doubt a more employment and job friendly alternative to increasing income tax or other taxes on work, which would stymy job creation. Any action taken by the Government to get our finances into line needs to be employment proofed so that we can ensure the best use of our resources and get our people back to work.

“This Government is working hard to bring our finances into line. We are doing it in such a way to ensure that frontline services are protected, core social welfare payments and income taxes remain untouched and that job creation potential is maximised so that we can build an Ireland in which we can once again be proud.”