Donegal County Council is to consider taxing holiday homes as a means of raising money for cash-strapped local authorities.
A Fine Gael motion tabled for today's meeting of the county council will outline the need to change legislation to allow councils to broaden its revenue base.
According to its proposer, Cllr Bernard McGuinness, there are 8,000 holiday homes in Co Donegal. An annual levy of €500 on each of these homes would generate €4 million a year.
He says that in many of the counties where there are a lot of holiday homes, money is badly needed to improve services. Cash-strapped councils are constrained in how they can raise money, however, and are largely financed by government grants. They have little autonomy when it comes to raising additional revenue.
"Quite a number of holiday homeowners have come to me and said that they cannot believe that they are not paying any charges," he said.
Cllr Noel McBride, who lives in the Downings area - which sees a huge influx of people in the summer months, including many from Northern Ireland - said the large number of holiday homes had placed a real strain on the local infrastructure, and in particular on the roads network, and the provision of water and sewerage services.
"You have a situation where people living in Northern Ireland may be paying over £2,000 sterling a year in rates on their principal residences - but they are paying absolutely nothing out here even though they are using services."
He added: "I don't think bringing in a charge would cause any hardship. We have to look at alternative ways of raising funds locally rather than depending on commercial rates."
The development of services has led to considerable pressures being placed on the relatively small commercial sector in the county which is faced with annual rates increases that are often above the inflation rate.
Earlier this month councillors in Donegal rejected a proposal for a 5 per cent increase in commercial rates proposed by the county manager, Michael McLoone, however later decided to adopt a 3 per cent rise.