Dublin councils putting off big hike in property tax by taking short-term view

Vital services for the disadvantaged at risk in the meantime

If the actions of Dublin councillors reflect their social values, the message is stark: homeless people and those with disabilities don’t vote and therefore don’t matter. Earlier this week, in spite of appeals from council managers, elected representatives voted to reduce the Local Property Tax by the maximum amount of 15 per cent for 2017, thereby foregoing millions of euro that could be used for housing adaptations, public facilities and homeless services. Cuts were made by all Dublin councils last year.

On this occasion, Fingal and Dún Laoghaire-Rathdown councillors led the way in reducing the household charge. Their colleagues in Dublin City and South County Dublin councils will vote on the issue within weeks.

The reductions will have a significant impact on council finances and on their ability to provide necessary social services. In Dún Laoghaire-Rathdown, councillors were warned of rising homeless costs and advised that projects could not go ahead as a consequence. In Fingal, elderly and disabled citizens are likely to be refused housing adaptation grants.

The sums of money being written off are significant: almost €8 million in Dún Laoghaire-Rathdown and €5 million in Fingal. Similar sums may be foregone in Dublin City and South County Dublin. Not all councillors have joined this tax-cutting cavalcade. Objectors were outnumbered by three to one in Fingal, however, and by five to one in Dún Laoghaire-Rathdown. Last year, councillors voted for cuts in 11 – out of 31 – local authority areas.

READ MORE

Householders will face a financial storm in 2019. In that year, a freeze that has applied to property valuations since 2013 will expire and, under revised guidelines due to be provided by the Revenue Commissioners, prices could rise by 30 per cent or more because of the recovery in the property market. Councillors should take the long view and husband their cost-cutting power until it can have a major impact. In the meantime, some or all of that 15 per cent should be used to provide vital services for disadvantaged citizens.