THE MANNER in which the Government has approached the imposition of a property charge has been incompetent, to put it mildly. The delay in providing information about what, precisely, was intended; a failure to deliver leaflets to houses likely to be affected; and difficulties involving methods of payment all served to portray a lack of political commitment and ambition. The person with direct political responsibility for this fiasco has been Minister for the Environment Phil Hogan. But all members of Government must accept some blame for failing to adequately address the situation.
Traditionally, no Irish government or politician wishes to convey bad news or introduce new taxes. This “cute hoor” attitude has brought us to where we are today – forced to rely on foreign loans to pay our way. The Government, which was elected in reaction to such behaviour, is now displaying a similar weak-kneed approach. Political courage, plain speaking and determined campaigning have been in short supply. A small group of Independent TDs has been allowed to seize the initiative in opposing the introduction of property and water taxes and septic tank charges. The outcome in relation to the property charge, due to be paid by the end of this month, would suggest they are having considerable success.
Property charge legislation was passed last year. But the Government decided nobody was going to get a bill; invited the public to register voluntarily and made it difficult to pay. Panic set in last month, when only 6 per cent of those liable had registered. It was decided to send application forms to houses. Earlier this month, forms were also made available at post offices. Delay in agreeing to the exchange of information with State agencies persisted.
The Government has to act decisively. Internal sniping over where responsibility lies only adds to public ambivalence and will damage the prospect of introducing effective septic tank and water charges in the future. Change is urgently required, either because of threatened financial penalties or the need to rebalance the tax system. There can be no equivocation in relation to the property tax: citizens have a duty to pay it. If they fail to do it now, the charge, with interest and penalties, will fall due when the property is inherited or sold.
We have been here before. A domestic property tax, based on self-assessment, was introduced in the 1980s. The level of evasion was so high, however, that it was abandoned in 1997. Mr Hogan and his colleagues appear to have learned nothing from that experience. Formal statements in the Dáil, or elsewhere, are no substitute for difficult, face-to-face meetings with the electorate. At present, about 20 per cent of liable properties have been registered. That figure is unlikely to change significantly by next Saturday. Postponement of the deadline, to allow for a comprehensive publicity campaign and for payments to be made through post offices, would be politically embarrassing. But it may be the most effective way forward.