Victor Boyhan: Dublin visitor tax is premature, he warns

Comhairleach, first I want to welcome the Minister. You're always very welcome to the House and it's great to see a Minister here. I suppose just a few observations in relation to this matter. I want to thank Senator Mary Fitzpatrick for suggesting this amendment. I think it's always good. I know she's a very strong record in local government and I've worked in the Joint Works Commission on Housing, Planning and Local Government with her. And so therefore I do take her serious when it comes to local government because she has a track record in local government so I want to acknowledge that. I just somehow think this proposal is premature and I say so for a number of reasons. Minister, firstly the Local Government Taskforce, which does much store, we're still waiting for it. And I don't want to be making decisions in a piecemeal basis when I don't see the whole entity of what is this Local Government Taskforce. It's on your desk and has been on your desk and Minister Cummins, a report and recommendations are due to come. I think they're going to Cabinet and I might be wrong but you might touch on that in your response. There was some suggestion that you know it's just the Americans that are coming here or well-to-do tourists in here. Every person in the country, round in rural Ireland, be they in Enniscorthy, be they in County Kildare, anyone coming into Dublin, are going to be paying this tax. Regardless of their income, they're all going to be paying this tax. So I'm not too sure about that. I'm not sure about the equity of it. I'm conscious of the fact that there are a number of nominating bodies to this, Janet. I've spoken to the Hotel Federation. I've spoken to Dublin Business Interests. I know the Chamber is a great advocate for business in Dublin and I think to a varying degree there is concerns. But I know the Hotel Federation have clearly conveyed to me, as have Vintners, that they are totally opposed to this legislation. And I had expected that that voice might be heard here tonight but clearly not so far. And I think that's interesting because I know they're looking in here tonight. I know they're fully aware of this proposal and they're actively monitoring it as is their right. We're also talking about collecting a tax when we have a local government, particularly in Dublin City, where they have been unable to collect the derelict site levy, which now the Governor suggests is going to transfer from a levy to a tax. And why the tax? Because there's this now great expectation that the revenue will collect it. The revenue seems to be the source of all collection for everything for the government so that's an issue. So there isn't a strong track record in local government in terms of the collection of levies or indeed taxes and that's an issue. We talk about the offer. What's the benefits here? We know that people are paying local property tax. We know the marketing around the local property tax when it was first introduced. We'd have new swimming pools, new ball alleys, new tennis courts. We'd have everything. The places would be clean. We'd have roses going up and down the paths. It didn't happen. And we're paying a central local government tax. People pay central taxes. They pay revenue. Businesses pay VAT rates. Employers pay PAYE, the cost of employing people. The hotel sector and the hospitality sector, which is crucial for this city, is important. I also think it's important to remember that we need local government reform. Minister, you're ultimately responsible for that and I don't doubt your commitment here. But at best we have local government administration. We have the most centralised local government across Europe. You know that. I know that. Some of the documents that were submitted as part of the consultation, local government, you know in terms of the public consultation in local democracy, we heard from other jurisdictions and experiences. We have the most centralised local government structure in Europe. And I've no doubt about that and you know that. So I'm in favour of subsidiarity. I'm in favour of local authorities raising local revenue that is retained locally. I'm not in favour of some sort of ring-fenced funds. So suddenly whatever you collect in the next amount of millions, that comes off your central subvention from government. So I have an issue about that. So I think that's really important. I want more devolved powers in local government. But until we see what you're suggesting as part of the local government taskforce, we don't know what you're proposing. We simply don't know. You may be able to tell us today, I hope you can Minister, not the content of the report, but you might signal to us here today. As people, I think everyone here has been a former county councillor, most of us. We have a huge interest in the local government sector. The local authorities, city and county councillors, principally make up a lot of the electorate percentage. So our finger is on the pulse. And we also live in local communities and in municipals. So we understand how it all operates. In conclusion, I want to say, Senator, I know where you're coming from. I know your best efforts on this. I don't think it is altogether fully teased out. I'm not suggesting you've said it has all been fully teased out. I know the point you make that it is about empowering local councils to make local decisions. But better we have it right than have mixed messages. Someone talked earlier on about the airports in Kerry. I mean, someone might have suggested, but no one has suggested it here, that there might be an additional €5 levy on every flight coming to Dublin. And what revenue would that give Dublin City? It would certainly be an easier one to administer than the one that's being proposed. But that isn't before us here today. So, look, I think we have to be proactive. We have to tease out more on these issues. The Vintners are concerned. Employers in Dublin are concerned. Members of the Chamber and various representative business bodies in the city are concerned. Rural Ireland. People from rural Ireland that want to come to the capital. This city will be paying this tax. Remember what we're doing here. We're putting a tax on everybody, including the Oireachtas members, and I have no problem with that, who come up here to stay in their accommodation in Boswells or up the road or down the road. Everybody that comes to our city is going to pay this tax. And I'll finish on this. Let's go back to the kernel of the issue. We will never have true local democracy if we don't have a proper, open, transparent and equitable funding for local government. I have spoken to councillors. No one, no one has asked me or attempted to convince me to come here tonight to support this proposal. They haven't done either way. So I don't know how many people actually know about it. But you're right to have the debate. And I always welcome a debate in relation to local government. And particularly I welcome a debate with you, Minister, who is ultimately responsible for driving local government. And hopefully you might share with us something of the progress and the timeframe for the local government taskforce, which all of our over 900 councillors would hope to hear too.