Sir, – The debate on the property tax and local services is missing the main point of the tax. After the property bubble burst in 2008 the country’s tax and spend policies came unstuck. The government’s income declined rapidly and it found itself in grave need of additional sources of revenue. The tax was one such source. It was marketed to the Irish people as a tax for local council-run services, but it is more similar to motor tax – it is a tax that goes into central funds and is distributed from there. Councils receive the local government fund general purpose grant from central government, of which a portion comes from the proceeds of the local property tax. We can debate all we want about where our property tax should go, which council areas are subsidising others, and which are getting more services than others, but in effect, it is a tax raised to reduce the overall level of government borrowings, not a direct attempt to fund all council services from locally raised taxes. – Yours, etc,
PAUL DEVER,
Swords,
Co Dublin.
Sir, – Steven Long (December 10th) makes the point that in relation to local government services, all households should be supplied equally, and all services supplied equally.
It should be noted that under the local property tax (LPT) framework, all householders are not charged equally; those who live in towns and cities are charged substantially more LPT than those who live in rural Ireland. This inequality is compounded further when the average size of a dwelling in urban and rural areas is considered. In addition, the Government applies an “equalisation” process to the distribution of LPT funds paid by householders in the Dublin city area. Of LPT payments made by householders in Dublin city, €16.5 million was distributed to rural areas.
Finally, the Government further directed that €49.5 million of LPT payments collected from Dublin householders be used to replace existing Government grants for capital purposes. This money could not be spent on providing the services referenced by Mr Long. Equality must apply to all aspects – for all householders, cities, towns and rural dwellers alike. – Yours, etc,
Cllr RUAIRI MCGINLEY,
Chairman,
Finance and Emergency
Services Strategic
Policy Committee,
Dublin City Council.