Concern local authority rents to rise as result of new property tax

Fianna Fail's environment and local government spokesperson Barry Cowen has today (Monday) raised concerns that some 1,700 local authority tenants across Offaly will face hefty hikes in rents next year as a result of new property tax legislation. Deputy Cowen said making county councils liable for property taxes on local authority houses in their area goes against advice in the Thornhill report on the issue. He said today that Offaly County Council can't be expected to absorb the cost of property taxes on each of the 1,700 local authority homes in the county, and therefore will have no choice but to push the cost onto tenants by increasing rents if the government goes ahead with its plans. "The rent on each local authority home is based on ability to pay so how can these families, who are already experiencing serious difficulties, be expected to afford sudden and significant rent increases?," he questioned. Deputy Cowen said the government has ignored advice from the Thornhill report on property tax, which says that local authority housing should be exempt. The gravity of the resulting situation, he said, has yet to dawn on many people. "There has been no consultation, no thorough impact assessment and no time for proper debate on this issue," he said. "I have spoken to many local authority members here over the past number of days who had no idea that this was coming down the line." Deputy Cowen said that with no direction from the government, Environment Minister Phil Hogan now needs to come out and explain how he expects Offaly County Council and the local authority tenants in the county to pay the property tax.