The Minister for the Environment, Community and Local Government, Mr. Phil Hogan, T.D. today (5 December, 2011) announced the publication of the Bill to provide for the introduction of the household charge of €100 to fund vital local services in line with the requirement in the EU/IMF Programme of Financial Support for Ireland. The Government had announced, in July, 2011, its intention to introduce the household charge in 2012.
The Minister stressed the Government’s firm commitment to introduce a valuation based property tax to replace the household charge. The Minister indicated that work is to commence early in the new year on the development of the property tax.
"A full property tax, requiring a property valuation system, will take time to implement, so the Government is introducing the interim household charge to apply to the majority of owners of residential property in the State. I will establish an inter-Departmental expert group to advise me, by mid 2012, on the design, scope and implementation of the property tax," the Minister stated.
The Bill will provide for the raising of some €160 million from the household charge which will be used to support the continued delivery by local authorities of vital services for our communities. "It is essential, if we want to continue to have the level of local services we expect, such as fire and emergency services, well maintained streets, public parks, waste services, libraries, open spaces and leisure facilities, that we provide the necessary financial resources to pay for them."
"I understand that the introduction of the household charge, even though modest at less than the equivalent of €2 a week, represents an additional cost for homeowners so I have provided in the Bill that it may be paid in a number of instalments. I have also introduced provisions in the Bill to protect vulnerable groups in society by providing a waiver for those on mortgage interest supplement and those residing in certain unfinished housing estates." The Minister indicated that further details on the unfinished estates that will qualify for the waiver will be announced as soon as possible.
In conclusion, the Minister stated "This measure is a further demonstration of this Government’s commitment to restoring balance in the public finances. It will provide a new stream of funding for local government enabling the sector to continue to respond to local needs and contribute to a more efficient, accountable and effective local government system. This is local democracy in action."