A NUMBER of Fine Gael's Dublin TDs have raised serious concerns about the residential property tax amid growing fears that it may damage the party in the next election.
The issue was raised at last week's meeting of Fine Gael TDs and senators and it is understood the disquiet is shared by some of the party's Ministers.
Now set to be a potent issue in Dublin and Dun Laoghaire in the next general election, the RPT last night became the focus of a Progressive Democrats "nationwide repeal campaign".
The campaign has been founded to mobilise support for the abolition of the levy, which was introduced as "a left wing ideological wealth tax on the family home", said the party's spokesman on finance, Mr Michael McDowell.
Meanwhile, the Fine Gael TD for Dublin South East, Ms Frances Fitzgerald, said she considered the RPT "an unfair tax on Dublin, particularly with escalating house prices".
"It is particularly punitive," she added. "I would encourage the Government to work as quickly as possible on the reform of Local Government finance.
Residential property tax raised Pounds 9.5 million in 1995 with each taxpayer paying an average of Pounds 488 in Dublin the average payment was Pounds 585. In many areas of the capital, particularly in south Dublin, property prices have risen sharply and the RPT liability of a household living in a home worth Pounds 110,000 has more than doubled, Mr McDowell said.
Payment of the property tax is liable if the household income exceeds Pounds 30,100 and the property has an aggregate value exceeding Pounds 101,000. Certain allowances apply where there are children.
Every affected home in the next six weeks will receive a detailed document from the Progressive Democrats outlining "the unfairness of the tax, its ideological origins and the way in which the tax can be avoided".
The campaign will sponsor an amendment to this year's Finance Bill to repeal the tax with immediate effect it will lobby all Oireachtas members asking for an unequivocal commitment to support the ending of the tax it will publicise the names of TDs who support or vote for its retention.
"The Progressive Democrats are moving their campaign to scrap residential property tax into top gear," Mr McDowell said.
Criticising Government TDs who were "hinting to their constituents that they were unhappy with the tax but voting for its retention", Mr McDowell said Dublin, which pays 75 per cent of the levy, would "exert its influence to force its repeal".
Government sources last night rejected Mr McDowell's contention that the Coalition was badly divided on RPT. They said all Fine Gael, Labour and Democratic Left TDs combined to vote down amendments to the Finance, Bill, which would have abolished the property tax from April last.
The Government is awaiting a report from a committee authorised by the Minister for the Environment, Mr Howlin, on the funding of local authorities. It is in that context that a review of the property tax will be considered.
However, sources said the tax is largely regarded by the Government as "modest" and that there is considerable "hype" being generated by the Opposition parties as a precursor to a general election.
They said concessions on the levy, along with any compromises on the controversial water charges, would limit the Government's ability to "give a better tax deal to workers in the next Budget."
The Fianna Fail leader, Mr Bertie Ahern, has already committed his party to abolishing the property tax if it is returned to power after the next general election.