Top Issue 1-2024

5 September 2014

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Public 'duped' by Government on Local Property Tax spending

ASSURANCES by the Government that tax collected through the Local Property Tax (LPT) would be used for the direct provision of services by local government have been exposed as spin, Sinn Féin says.

The criticism comes as Labour Party Minister Alan Kelly announced that wealthier local council areas will subsidise the shortfall in others.

Sinn Féin Finance spokesperson Pearse Doherty accused the Government of duping people by claiming the money would be used for local services. Instead, homeowners have found themselves paying more tax for fewer services:

"The announcement by Minister Alan Kelly puts an end to the spin from Government that the purpose of Local Property Tax is about the funding of local services. 

"The reality is that the Property Tax was created to aid the process of diverting finances from central government away from the funding of locals councils to the supporting of toxic banks."

The Donegal TD also criticised comments by the Minister that no authority will receive less than in 2014.

"He fails to mention that 2014 was an extremely low point and that without central funding the LPT system does not allow for greater funding. Many counties have seen their funding drop by almost 50% from 2011 to 2014."

Sinn Féin Dublin City Council leader Séamas McGrattan says the Property Tax is an inadequate way of providing funding for local services. Noting that the council's income is based on the value of houses in the council area, he said:

"We know this year what the facts and figures will be. We don't know next year what house prices will be in Dublin or anywhere else in the country – it's not the way to provide local government funding"

Pearse Doherty also reaffirmed Sinn Féin's commitment to abolishing the Local Property Tax when in government.

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