Sir, – I am indebted to Cllr John Kennedy of Fine Gael for his response (Letters, October 18th) to my earlier letter (October 17th). It helps to highlight key areas of policy and values difference between our respective parties. The Social Democrats form policy based on fairness, equality, sustainability and evidence. Is it fair to provide a universal tax cut of 15 per cent in local property tax (LPT) to all residential property owners rather than targeting it to those who are likely to have more difficulty in paying the base rate? The 15 per cent reduction is worth up to €100 per annum to over 72 per cent of LPT payers in Dún Laoghaire Rathdown (DLR), those targeted in the proposed Residential Support Scheme. Instead Cllr Kennedy prefers a universal tax cut to all LPT payers. Take one example: this cut is worth €1,500 for those fortunate residents whose properties are valued at €4 million. I don’t think it is fair or equitable to provide such skewed and unequal benefit. The Social Democrats are in favour of universal services and targeted State supports and targeted tax reductions. Cllr Kennedy also dismisses the evidence of retail credit redemption rates, preferring to rely on his belief that the pilot’s rate “seemed to be low”.
But Cllr Kennedy does us a considerable service in highlighting one of the many major flaws in the newly reformed LPT. He correctly notes that the ending of the Equalisation Fund was presumed to result in an increase in the council’s discretionary income. Not so. Instead, what central government gives to DLR with one hand (over €10 million), it takes more with another. The increase in the allocation of “self-funding” spending (under housing and roads headings) from 44 per cent to 63 per cent of LPT income means that central government is reducing its grant payments to the council by over €13 million. It also means that of the €5 million additional LPT income arising from new properties being subject to LPT, central government nabbed €3.4 million of that by way of reduced grant payments to the council. Maybe Cllr Kennedy should be writing to his senior party colleagues? – Yours, etc,
Cllr DAVE QUINN,
Social Democrats,
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Dún Laoghaire
Rathdown County Council,
County Hall,
Dún Laoghaire,
Co Dublin.