I propose to take Questions Nos. 44, 49 and 50 together.
In Budget 2026, it was announced that a new Derelict Property Tax (DPT) would be introduced. The aim of this tax is to encourage the activation of derelict properties and sites. It will replace the Derelict Sites Levy and will be collected by the Revenue Commissioners.
I intend to legislate for DPT as part of Finance Bill 2026. This allows for the tax to be brought in quickly and without delay. It also provides an annual opportunity to amend the tax, if required, following its introduction. For these reasons, it is my view that the Finance Bill is the most appropriate vehicle to introduce DPT. As with the majority of taxes, the proceeds of the tax must accrue to the Central Fund.
Regarding the reallocating or ringfencing of tax revenue back to individual local authorities, the main policy objective of DPT is to change behaviour with respect to dereliction. The revenue raising capacity of the tax will likely deteriorate over time as properties are brought out of dereliction. If the revenue from DPT was ringfenced for infrastructure projects in individual local authorities, a reduction in the tax yield from DPT could result in less revenue for such projects.
Furthermore, not hypothecating tax revenue allows Government the flexibility to prioritise and allocate funds as necessary. The importance of this flexibility has been demonstrated in recent years, where matters such as the COVID-19 pandemic, the war in Ukraine, and this year’s volatility in energy prices have required expenditure which could not have been predicted in the preceding Budget cycle.
The administration of DPT will require local authorities, including Fingal County Council, to identify derelict properties located in their respective areas. I am of the view that funding and resources to facilitate the identification of derelict properties should be sought and dealt with as part of the estimates process in advance of Budget 2027.
At present, local authorities are allocated funding by central government for the purpose of providing supports to address long-term vacancy and dereliction, as well as regeneration. This includes the Vacant Property Refurbishment Grant, which provides a grant payment for refurbishing a vacant or derelict property. It also includes the Ready to Build Scheme, which funds the provision of serviced sites in towns and villages to individual purchasers for self-builds. Under the 2026 Revised Estimates for Public Services, the Croí Cónaithe Towns Fund Scheme and vacancy supports were given an allocation of €175 million.
Once the DPT is operational, I am confident that many owners of derelict properties will be incentivised to take action to bring these homes back into use and ultimately contribute to our housing stock. The behavioural effect of the tax will also contribute to regeneration and development, breathing new life into our villages, towns and cities.
