Minister denies ‘duped’ claims on property tax

Homeowners have been "duped" into paying more for poorer services under the property tax, opposition TDs have claimed.

Fri, 05 Sep, 2014 - 01:00

Shaun Connolly, Political Correspondent

Government assurances the levy would pump more funds into the coffers of local authorities have proved worthless, critics have insisted.

Fianna Fáil environment spokesman, Barry Cowen branded the new system of funding “banana republic stuff” as he sought clarification from ministers that councils have enough time to apply to cut the tax next year before the September 30 deadline.

Mr Cowen said this does not allow enough time for the month-long consultation period, but Environment Minister Alan Kelly insists those consultations have already been carried out.

“It is incredibly cynical to publish these details during the first week in September. As the minister knows, legislation provides that councils must inform the Revenue Commissioners by 30 September so any changes to the tax can be enacted for 2015.

“By law, councils must have gone through public consultation of one month, which will not be possible. With many councils not due to sit again until this week or next it leaves no time for adequate consultation and negotiation,” Mr Cowen said, adding that the public had been “hoodwinked” over the tax.

“The vast majority of local councils will not be better off next year compared to before the tax was introduced. It is totally hypocritical of the Government to now say that most local authorities have to fund any reduction in the tax themselves. This may mean that other services have to be reduced in order to fund any cut in tax, something which the Government deliberately failed to disclose when the regulations were initially published.

“Mr Kelly seems happy to have misled taxpayers into thinking the property tax would go towards local services and amenities,” Mr Cowen said.

Sinn Féin finance spokesman, Pearse Doherty also said homeowners had been “duped”.

“The local property tax is a tax that was created to aid the process of diverting finances from central government away from the funding of locals councils to supporting toxic banks.

“When Minister Kelly says no authority will receive less than 2014 he fails to mention that 2014 was an extremely low point and that without central funding the property tax system does not allow for greater funding.”

Many counties have seen funding drop by almost 50% from 2011 to 2014. and are receiving this historically low level of funding only because of the surpluses of other counties, Mr Doherty said.

Mr Kelly said the property tax system was the fairest way of funding local government.

“No local authority across the country is worse off from the baseline they were at in 2014,” he said.

Councils gaining from Equalisation Fund:

- Carlow: €2.1m

- Cavan: €4.8m

- Donegal: €13.9m

- Galway: €0.5m

- Kilkenny: €3.2m

- Laois: €3.6m

- Leitrim: €6.5m

- Limerick (combined): €1.6m

- Longford: €6.3m