Deputy Chris Andrews T.D. has today (23rd June 2010) said that any proposed property tax would not be the right approach to raise revenue, particularly in light of how many home owners are already struggling with negative equality. Deputy Andrews, the Fianna Fáil representative for Dublin South East was speaking following comments by An Taoiseach that no decision has yet been made in relation to such a tax.

Speaking today Deputy Andrews said, “I know that the Taoiseach has stated that no decision on this matter has been made which I welcome. Given the current difficulties experienced by people in relation to mortgages I would be strongly opposed to the implementation of any such tax. Property values have fallen by an average of 50% and people are struggling to pay for their homes. I believe that a tax on the family home is not the right approach to take.”

“1983 the Fine Gael/Labour coalition introduced a residential property tax (RPT). This tax (set at a rate of 1½% of value) was designed to generate revenue from valuable domestic properties occupied by those on high incomes. It was, in my opinion a grossly unfair system, which penalised people who lived in certain addresses, irrespective of their own personal circumstances. The value of property was taken into consideration, while other assets such as cars, second homes etc. were not, hence some very wealthy people paid little or no tax on their property.”
“ I do agree that the process of financing local government is urgently in need of reform, however I believe that domestic rates and taxes should corroborate with individual usage, and that reform of local government procurement processes and service delivery should be implemented as a first step. People are doing everything they can to keep their heads above water and hold onto their homes and we must assist them in this."

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