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Greens 'blindsided' by land tax deferral, as question posed on how serious Govt is about fixing housing

This tax measure, which has a long-lead in time, was promoted by government as a measure to incentivise landowners to use existing planning permissions for housing.

A NUMBER OF Green Party politicians have not held back today in voicing their disdain at a decision to defer taxing undeveloped land. 

It is understood the Greens side of the government were “blindsided” by the Irish Independent report that Finance Minister Jack Chambers is set to defer the Residential Zoned Land Tax for another year.

The tax is targeted at zoned, serviced residential development lands, including mixed-use lands, with the tax rate set at 3% of the land’s market value annually.

The new tax was set to kick in in February, with bills coming due in May 2025. 

Last year, local authorities published maps of areas where landowners will be subject to the new tax with Housing Minister Darragh O’Brien stating that only one-sixth of residentially-zoned land is activated for housing during a given local authority’s six-year development plan.

This tax measure, which has had a long-lead in time, was promoted by government as a measure to incentivise landowners to use existing planning permissions for housing.

Deferring the tax by one year

Chambers told RTÉ News yesterday that he intends to defer the tax for one year only, as he wants to ensure active farmers are fully excluded from it.

“I’m working on proposals to defer the residential zoned land tax for a further year, and this is to exclude active farmers from this tax.

“It would place a disproportionate and unfair burden on active farmers if this tax was to be imposed annually,” he said. 

His comments came after Taoiseach Simon Harris said it is “offensive” to describe farmers as land-hoarders and defended plans to defer the tax.

“As long as I’m Taoiseach, no active farmer is going to pay a residential land tax – simple as.”

“This land tax is absolutely about making sure people can’t hoard land. It was never meant to be about penalising an active farmer,” said the Taoiseach.

Since those remarks, a number of members of the Green Party have voiced their anger over the move.

It is understood those within the party are angry that “no heads up” was given that this was in the works, particularly as the tax was legislated for back in 2021, and deferred in last year’s budget so that everyone could get their ducks in a row.

Green Party TD Neasa Hourigan said if the government are serious about tackling the housing crisis then land that is zoned and serviced as well as earmarked by councils for housing should be utilised, and if not, taxed for lying idle.

She told RTÉ’s Morning Ireland: “We’re in the run up to an election and we know that what we’re seeing right now is a step back from something that was agreed five years ago.”

Land hoarding is one of the biggest problems in terms of delivering affordable housing, she said, stating that “now we’re putting it probably on the never, never, not even on the long finger. For a Fianna Fáil minister to do this particularly is shocking”.

She added that the finance minister, as a Dublin minister, is going to have to stand on doorsteps in Dublin West and defend putting off the tax measure that she said will fundamentally deal with the price of housing.

‘Like hiding food in a famine’

Deferring the tax is “like hiding food in a famine”, she added. 

Hourigan said there is already an exemption for farmers who are working the land, whereby farmers can opt out and ask for their land to be dezoned. 

Education Minister Norma Foley today defended the decision, stating that she wanted to commend the finance minister, calling the deferment “the right move”.

“I think there’s a recognition that we also have to support farmers who are active on the ground. Agriculture and its importance should never be underestimated. Those who are actively farming, those who are using the land for the purpose of agriculture, I don’t think that they should be caught in a bind,” said Foley. 

“So we need to reflect on that, and we need to preserve that, but equally so, we need to drive ahead, obviously, with housing,” she said, stating that it was about “doing both equally and doing both fairly”.

It is understood the Greens want a solution found sooner rather than later and are seeking a reversal of the decision to defer the tax.

Those within the party state that there is real concern that speculators, who are sitting on parcels of land that has been zoned, have no intention of building on the land, and are simply sitting on it as its value increases every year. 

While the Greens are now at loggerheads with their coalition partners in government, there is an assumption now that a solution will be found and the deferment will not take place. 

Speaking on RTÉ Radio One today, Minister of State Ossian Smyth said: “Here we are three years later [from the original agreement] and some politicians think it should be deferred for another year”.

When asked about the decision to defer the tax, he said: “I’m sure they won’t [defer it], how could they, that’s not going to happen.”

Pushing out the tax is being seen by the Greens as an own goal of sorts by Fianna Fáil given that the party holds the housing brief and also as an easy topic for Sinn Féin to highlight.

Sinn Féin has criticised the move, saying that the deferral will benefit developers who are speculating on land. 

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    Install the app to use these features.
    Mute john murray
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    Nov 4th 2024, 7:28 PM

    That’s only the start of it. Long serving party members not being placed but replaced by Celeb candidates is not going down well in the Cumanns either. And Stephen Donelly, a shoo-in nominated without a local vote. No future in FF is what I’m hearing from local party members. Delighted it’s crumbling.

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    Mute Patrick Creaven
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    Nov 5th 2024, 9:13 AM

    @john murray: Dr Martin Daly is no celebrity candidate

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    Mute Brian Hunt
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    Nov 4th 2024, 7:24 PM

    Fianna Fail=Toxic brand, and as for Woderic, what a disaster for Ireland!

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    Mute qffaffaf affrafrfraf
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    Nov 4th 2024, 7:11 PM

    that Roderic O’Gorman is an awfuk dose, notions on him

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    Mute Brendan O'Brien
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    Nov 4th 2024, 7:15 PM

    @qffaffaf affrafrfraf: He’s right. Someone has to say it.

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    Mute FlipBip
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    Nov 4th 2024, 7:24 PM

    @Brendan O’Brien: €1.25

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    Mute sean weir
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    Nov 4th 2024, 7:57 PM

    @qffaffaf affrafrfraf: “notions on him”
    Sweet jesus you are backward

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    Mute qffaffaf affrafrfraf
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    Nov 4th 2024, 8:40 PM

    @sean weir: you’re another one with notions

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    Mute Mike Doe
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    Nov 4th 2024, 11:39 PM

    @qffaffaf affrafrfraf: utterly useless like all greens

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    Mute Means Of Escape
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    Nov 4th 2024, 7:30 PM

    Going independent seems to be the only way to stay at the trough. Nothing will be decided upon with a government top heavy with independents

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    Mute Gavan Hogan
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    Nov 4th 2024, 7:34 PM

    I feel sorry for the clipboard.

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    Mute MN
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    Nov 4th 2024, 8:20 PM

    Independents who will vote with FFG every time

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    Mute Kevin O Brien
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    Nov 4th 2024, 8:33 PM

    All independent votes are FFG votes in the end as they stand with Government

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    Mute Mike Doe
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    Nov 4th 2024, 11:39 PM

    @Kevin O Brien: and rightfully so :)

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    Mute Michale Kane
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    Nov 4th 2024, 7:45 PM

    They should go on some celebrity reality tv thing, get 15 mins of fame, then Michael Martins FF would back ya !! Or better still join FG and Michael will give ye great praise and his upmost confidence .. along with the keys to the country. ;)

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    Mute Lefty Tears
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    Nov 4th 2024, 9:02 PM

    @Michale Kane: FF always do a great job when they are given the keys to the country

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    Mute Michale Kane
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    Nov 4th 2024, 9:07 PM

    @Lefty Tears: Stick to being a Trump supporter, only slightly lower than a Michael Martin supporter lol.. don’t bother replying.. accidental unmute malfunction … fixed

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    Mute Michael o connor
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    Nov 4th 2024, 7:13 PM

    Rats!!

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    Mute Galway Bay
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    Nov 4th 2024, 8:16 PM

    @Michael o connor: why ?

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    Mute Willie Marty
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    Nov 5th 2024, 4:56 AM

    @Galway Bay: Isnt it obvious.There deserting the proverbial sinking ship.

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    Mute Lydia Mcloughlin
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    Nov 4th 2024, 11:18 PM

    As far as I’m concerned independents are just trying to appear as such and are affiliates of one party or another. They’ll just prop up whatever party needs to be propped up.

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    Mute Mike Doe
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    Nov 4th 2024, 11:41 PM

    @Lydia Mcloughlin: long may it continue

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    Mute Kevin O Brien
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    Nov 4th 2024, 8:32 PM

    Wise man he knows whats comming for FFG

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    Mute Mike Doe
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    Nov 4th 2024, 11:40 PM

    @Kevin O Brien: yes, 5 more years :)

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    Mute Peter McGlynn
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    Nov 5th 2024, 12:41 AM

    People will vote for them thinking they represent change when you just know they’ll vote along with the party if elected.

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    Mute Barney
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    Nov 4th 2024, 8:05 PM

    So the allegience is to serve for the party, people or Money!

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    Mute Mayo seem to be the football equivalent of Waterfo
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    Nov 4th 2024, 10:54 PM

    Independent FF. Yeah, like that’s trustworthy

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    Mute Michael O Dwyer
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    Nov 4th 2024, 10:24 PM

    What a load of wosses

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    Mute Jb Walshe
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    Nov 4th 2024, 8:46 PM

    Fintan pox should run

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    Mute Lefty Tears
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    Nov 4th 2024, 9:00 PM

    @Jb Walshe: a great man, is Fintan

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    Mute Michale Kane
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    Nov 4th 2024, 9:04 PM

    @Jb Walshe: oh he couldn’t, nor as his Pat Hazzard or others …. Plus the fact Stephen would have to explain the false names … and the debacle of his excommunication from FF removed any shred of credibility of that lad.. ;)

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    Mute Brian Hunt
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    Nov 4th 2024, 10:33 PM

    @Jb Walshe: He’d top the poll!

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    Mute Colette Byrne
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    Nov 5th 2024, 9:15 AM

    Reason not to vote independents. Mainly failed ffg politicians, not good enough for their party, not good enough.
    Sick of this gravy train. They need to stop that train in it’s tracks.

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    Mute N D K
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    Nov 5th 2024, 12:35 PM

    Vote for Holly

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