One Million People Revolt Over Household Charge

Almost one million people have refused to pay a new household charge introduced by the Irish government, in what amounts to the first major rebellion by the Irish public against austerity measures introduced by successive governments in response to the economic crisis.

The deadline for paying the new charge was last Saturday, March 31st, and the agency tasked with collecting the money said just over 800,000 households had registered and paid on time.

But there are close to 1.8 million households in Ireland, and although some are exempt from paying the tax, the final compliance with the new tax will be little more than 50%.

The household charge was introduced after a commitment made in the bailout deal with the troika of the IMF/ECB and EU to introduce a property tax in 2012.

A flat fee of €100 was applied to all households regardless of the size of the property or the income of the household.

It is an interim measure while the government designs a more sustainable and equitable long term property tax.

Under the system, households had to register themselves and declare their liability.

But many have simply refused to do so - believing that the government has already dug into their pockets enough with tax hikes and public service cuts over the past three years.

Those who have not yet paid will now be liable to pay €111, with a further one euro fine each month that the fee remains outstanding.

From October, the fines will increase to 20%.

The government withstood significant pressure to extend the deadline from a vocal and well organized campaign against the charge.

Minister for the Environment Phil Hogan said he was considering ways to reward local authorities where compliance with the charge was highest.

He said the money would be going to fund local services such as libraries, playgrounds and parks.

"This money will be used to fund vital local services," he said, "The more that is paid and collected the better the quality of services to be provided locally..

"I know that Irish people have had a difficult time of it over the last few years and, in spite of that 800,000 have registered and paid the charge.

"The EU/IMF Programme of Financial Support committed us to the introduction of a property tax in 2012. The Household Charge is an interim measure and I will introduce a comprehensive and equitable valuation-based property tax as soon as I possibly can."

"Nobody wants the imposition of new taxes or charges and I would have preferred not to have had to introduce this charge. However, the principle of the Household Charge is very important. We are one of the last countries in Europe not to pay for essential local services through a locally-based tax.

"I am appealing to local authorities to be businesslike in collecting the outstanding charges and I'm examining the principle of better rewarding those that pull out all the stops to collect the charge."

But Minister Hogan has been roundly criticized for his handling of the introduction of the charge.

Even his cabinet colleagues admit mistakes were made and lessons would have to be learned by the government.

Local authorities are now beginning to examine ways of encouraging more people to pay the charge.

The household charge had been expected to raise €160 million - there will now be a shortfall of up to €80m in local government funding.