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Noonan, Michael

Friday, 14 December 2012

Dáil Éireann Debate
Vol. Nbr.


Order of Business

The Abbey has moved to Cork.More Button

Order of Business (Continued)

Fianna Fáil provided the backdrop to the introduction of the property tax.More Button

Credit Institutions (Stabilisation) Act 2010: Motion

I move:More Button

Credit Institutions (Stabilisation) Act 2010: Motion (Continued)

The objective was to capitalise the banks to the highest international standards, thereby rebuilding investor confidence in the Irish banking system and in due course restoring their access to norm...More Button

The early indications from this strategy are that a withdrawal of the scheme could occur in the first quarter of 2013. Depositors will be given sufficient notice in advance of the withdrawal of th...More Button

An early Christmas in Killiney.More Button

I thank all of the Deputies who contributed to the debate and Deputy Michael McGrath for his support. A key commitment given in the troika support programme was that there would be comprehensive r...More Button

Deputy Michael McGrath raised the issue of lending to SMEs. The Government imposed SME lending targets on the two domestic pillar banks for the three calendar years 2011 to 2013. Both banks wer...More Button

In addition to the lending targets imposed, the pillar banks are required to submit their lending plans to the Department and the Credit Review Office at the beginning of each year outlining how ...More Button

The Central Bank has published a revised statutory code of conduct for business lending to small and medium-sized enterprises setting out new requirements for lenders when dealing with SMEs in or...More Button

Deputy Michael McGrath also knows that an independent Mazars survey of SME credit facilities was published last year. On foot of this report, a series of seven regional meetings with local repre...More Button

In the Action Plan for Jobs a range of actions are outlined to encourage access to credit for SMEs and enhance the measurement and reporting by the banks of their lending to the sector. These in...More Button

Deputy Michael McGrath also raised the issue of mortgage arrears. The introduction of the new Personal Insolvency Bill will incentivise the banks to reach an agreed solution with individual borr...More Button

At a future date we can deal with some of the other issues raised. The Mercer review is proceeding and I hope to receive a full report early in the new year.More Button

Finance (Local Property Tax) Bill 2012: Second Stage

I move: "That the Bill be now read a Second Time."More Button

The introduction of the local property tax will deliver significant economic and fiscal reform through broadening the revenue base to pay for vital public services in a manner that does not direc...More Button

The Government also sees the necessary introduction of this tax as an opportunity for very real political reform at local government level. The local property tax will provide a stable funding b...More Button

A notable feature of Irish taxation in recent decades has been the almost complete absence of an annual or recurring tax on residential property. Rates on domestic properties were abolished in 1...More Button

Finance (Local Property Tax) Bill 2012: Second Stage (Continued)

All of the available evidence suggests that the taxation of property through a recurring annual tax is economically less distortionary than the imposition of tax on income or capital. This is supp...More Button

Apart from the absence of a property tax, the OECD has reported that Ireland "has some of the most generous tax provisions for owner-occupied housing". Ireland is the only country to allow tax r...More Button

The overall budgetary position is another part of the context for the introduction of the local property tax. Moving towards a balanced budget is a necessary pre­condition for restoring the econ...More Button

The introduction of a value-based property tax is part of our obligation under the EU-IMF programme. In the latest memorandum of understanding between the Government and the troika, a commitment...More Button

The Minister, Deputy Hogan, established an interdepartmental group in February 2012 under the chairmanship of Dr. Don Thornhill to consider the structures and modalities for a full property tax. ...More Button

The Thornhill group proposed that a local decision factor be applied to enable local authorities to vary the central rate by between 5% and 15% above the national rate. This provision is referre...More Button

I wish to summarise the key elements of the local property tax. Owners of residential properties will be liable for payment of the tax. The market value of relevant properties, as assessed by t...More Button

Liable persons can choose from a variety of payment arrangements, including paying the tax directly or having it deducted at source from salary or State payments. Deduction at source will be the d...More Button

Before going through the main elements of the Bill, I will discuss briefly why the market value of properties was chosen as the basis of assessment. The Thornhill group did consider other possib...More Button

Part 1 which comprises sections 1 and 2 contains the Short Title, commencement provisions and interpretation sections.More Button

Part 2, comprising sections 3 to 10, provides for definitions of "relevant residential property", on which the tax will be chargeable and that certain properties will be regarded as not relevant ...More Button

The Government is conscious of the very real costs and difficulties faced by people whose homes have been affected by pyrite. My colleague, the Minister for the Environment, Community and local ...More Button

Part 3, made up of sections 11 and 12, contains the rules regarding liable persons. In general, the liable person will be the person who is the owner of the property. A person with a leasehold in...More Button

Part 4, comprising sections 13 to 21, contains the charging provisions of the Local Property Tax Bill. The first valuation date will be 1 May 2013 and the valuation on this date will be valid fr...More Button

Section 15 provides that where a liable person makes a self-assessed valuation in accordance with guidelines issued by the Revenue Commissioners and pays the annual amount of tax due, the Revenue...More Button

Section 16 contains the charging provisions for local property tax. The tax will be introduced in 2013 and will be payable by the liable person. Joint owners will be jointly and severally liabl...More Button

Section 17 sets out the methodology for calculating the local property tax payable for a residential property. The section contains a table with an initial valuation band of €0 to €100,000 plus ...More Button

Section 20 enables local authorities to increase or decrease the rate of local property tax by a local adjustment factor which cannot exceed 15% above or below the national central rate. The ext...More Button

Part 5, which comprises sections 22 to 26, contains the standard care and management provisions for Revenue, including the four-year time limit on repayments, delegation of functions to authorise...More Button

Part 7, made up of sections 33 to 46, relates to the making of returns of local property tax to the Revenue Commissioners. As indicated, the Bill provides for a self-assessment system and allows...More Button

Part 8, comprising sections 47 to 60, deals with Revenue estimates and assessments. Revenue will make an estimate of the amount of local property tax due in respect of a property and will notify...More Button

Part 9, comprised of sections 61 to 63, contains the usual appeal procedures for taxes under the care and management of the Revenue Commissioners.More Button

Part 10, which covers sections 64 to 118, contains provision for the deduction at source of the local property tax from Irish wages, salaries and pensions, from certain payments made by the Departm...More Button

Part 11, comprising sections 119 to 129, includes the collection and enforcement provisions for the tax, including the due date for payment, the application of the collection and recovery provisi...More Button

Part 12, which includes sections 130 to 139, provides for deferral of payment of local property tax in the case of properties occupied as a sole or main residence. The income thresholds for a fu...More Button

An increased income threshold applies in the case of properties occupied as a sole or main residence and subject to a mortgage. In such cases, the gross income thresholds may be increased by 80%...More Button

Where a liable person no longer satisfies the necessary conditions, amounts deferred prior to the date on which eligibility ceased may continue to be deferred. Where the spouse or partner of a l...More Button

Part 13, made up of sections 140 to 144, includes the standard Revenue powers provisions, including the right for Revenue officials to make inquiries about property and its ownership and inspecti...More Button

Part 15, covering sections 151 to 153, provides that certain persons and bodies will be obliged to supply information on residential properties to the Revenue Commissioners when required to do so...More Button

Part 16, comprising sections 154 to 156, contains provisions in regard to the household charge. The household charge will no longer be payable from 1 January 2013. Arrears paid before 30 April ...More Button

Part 17, covering sections 157 to 159, contains various supplementary provisions, including a provision for payment of local property tax by the Minister for Finance into the Local Government Fun...More Button

I thank the officials of my Department and the Revenue Commissioners who worked to produce this Bill. I also thank officials of the Department of Social Protection, the Department of Agriculture...More Button

The key objective of the Government is to support the creation of jobs and this was evident in the supports that I included in last week's budget for SMEs and for the different sectors of our eco...More Button

It is unfortunate that so far in the budget debates the Opposition has failed to propose realistic positive measures that support job creation. The Opposition has resorted to opposing many of th...More Button

I encourage the Opposition to join the Government in suggesting positive measures that will support job creation and secure the funding for public services. I commend the Bill to the House.More Button