Michael Noonan rules out tax exemption over flood losses

Minister for Finance Michael Noonan has confirmed that householders affected by the floods will not be exempt from the property tax.

Mr Noonan said, however, that homeowners affected by flood damage could change the valuations of their homes to reduce the size of the levy they will have to pay.

The Minister said this includes people who believe their homes are now worthless, meaning they would not be liable for any property tax.

“Local property tax is a tax that is self-assessed,” he said. “So if a householder believes that the value of their household has been diminished or totally cancelled, well then, they should submit a valuation commensurate with that.

“It is already within the legal base of the property tax to allow householders deal with reducing values from any extraneous events, including flooding,” he said.

The Cabinet met on Tuesday and agreed 12 proposals to respond to the flooding crisis.

A new €2 million assistance scheme for farmers who have suffered fodder losses was agreed. This support will apply to the loss of silage, hay, straw and concentrates where there is evidence of damage caused by flooding and where the losses are not covered by insurance.

Farmers can also avail of the humanitarian assistance scheme offered by the Department of Social Protection.

There will also be a hardship recognition scheme for farmers, but the final details are yet to be worked out.

Future plans

The Cabinet also agreed to establish a river Shannon co-ordination group to oversee future flood management plans for 66 towns and regions along the Shannon.

The Cabinet declined to set up a single authority to manage flooding in the river’s catchment area, saying it could take considerable time and require legislative changes.

Fianna Fáil TD Robert Troy called this a deeply disappointing decision.

“It’s ridiculous to see Government Ministers claim that it would take too long to pass the legislation necessary to make this happen,” he said. “The Dáil could be recalled this week to debate the matter with emergency legislation being passed without delay.”

Sinn Féin leader Gerry Adams also claimed it was essential that the body had legislative support.