Gilmore's tax claims rejected
Published 07/07/2014 | 02:30
JOBS Minister Richard Bruton has robustly dismissed Labour Party claims that Fine Gael wants to cut funding from councils in receipt of high property tax revenues.
He was responding to claims from former Tanaiste Eamon Gilmore who said that Fine Gael plans to cut funding allocations to local authorities would be a "fundamental breach" in an agreement between the coalition parties.
Such a move would mean most councils would not have enough cash left to pass on any cut in property tax to residents.
However, Mr Bruton denied there has been any breach.
"There has been no breach of any agreement, it has yet to be decided and the paper will come to Government from the Minister of the Environment."
Mr Gilmore said from a Labour perspective the tax was built on two principles – flexibility for each council to adjust the rate by up to 15pc and that 80pc of proceeds collected would go towards delivering local services. "I'm very concerned I have to say that there may be some departure from those two principles," he said.