Support for proposed property tax
THE recent AGM of the Irish Auctioneers and Valuers Institute (IAVI) in Dublin, the Institute’s newly appointed President, Kersten Mehl expressed his dissatisfaction at delays in establishing the Property Services Regulatory Authority (PSRA). He welcomed government action in the form of NAMA and financial regulation and also supported the recommendation by the Commission on Taxation for the introduction of an annual residential property tax to facilitate transactions and generate sustainable revenue for the Exchequer and, in turn, local Government.
Limerick-based Mr Mehl highlighted the frustration felt by the IAVI and its members at the slow progress through the Oireachtas of the Property Services (Regulation) Bill to activate the PSRA, which would monitor industry professionals and protect consumers.
“It is ridiculous to think that I am the third successive IAVI President to highlight, in his inaugural speech, the fact that the Property Services Regulatory Authority legislation is still before the Oireachtas. This relatively simple and non-contentious legislation has been delayed for months having first been introduced in early 2009 and only reaching its Committee Stage in the Seanad yesterday (Wednesday 21 April). The IAVI has supported this move since the Review Group’s Report was presented to the Minister almost five years ago and again calls for its immediate enactment.
“I have three words of advice for a Government to deal with the legislative backlog: take less holidays! The property profession and the public need this legislation in place. The PSRA is set up and ready to go. In the meantime, in my own area of practice, property management, there are many practitioners with no recognised qualification and no licences holding the deposits of thousands of tenants nation-wide, which is unacceptable as they have no recourse or protection,” he said.
Speaking about the banking crisis, Mr Mehl welcomed the establishment of NAMA, describing it as a risk worth taking. He also welcomed the appointments of Mr Patrick Honohan and Mr Matthew Elderfield to the Central Bank to address the issues facing the troubled financial sector.
Having praised the Finance Minister’s move to stabilise the economy, he said, “it was the Government’s responsibility to oversee regulation for the banking sector and they failed miserably. Indeed, many of the legislators now accepting praise for appointing wise new regulators and beginning to allocate appropriate resources to do the job, make no mention of their own collective failure to facilitate these things from the outset.
“Ultimately the citizens of this country have to pay the price and, as a nation, we must learn the lesson and ensure that nothing similar ever occurs again,” he continued.
Addressing the issue of the likely property tax, he said, “the IAVI National Council supports the recommendation by the Commission on Taxation in their report for the introduction of an annual residential property tax insofar as it broadens the tax base, creates a more level playing field and will help fund Local Authorities, which are very short of money.
“Another reason to support such a tax is that it will be linked to a significant reduction, or even abolition, of Stamp Duty, which is a regressive tax that impacts on transactions and restricts the efficient use of our property stock, both housing and commercial,” he said.
Speaking personally, Mr Mehl said he also supports a property tax because paying out money will result in a more demanding electorate.
“I genuinely feel that that this will lead to a better calibre of Councillor at local level and ultimately to a fresh intake of talent to the Dáil,” he said.
Speaking to the Institute’s members about the upcoming vote on a proposed merger with the Society of Chartered Surveyors, he called on them to stand with the IAVI National Council and support the merger.
“This merger would create an organisation representing over 4,000 professionals dealing with all aspects of the sector from planning, construction, agency, and valuation to marketing and management,” he said.
He added that the new body could provide “sound, properly researched advice to Government on meeting the challenges facing the country’s built environment”.
“IAVI lost 13% of its membership in the last 12 months. Given the general carnage in the economy and the market collapse over the last three years, this loss is understandable but it is also regrettable. It says a lot for the forbearance, strength, and financial foresight of our members that the reduction in membership numbers was not higher.
“At this time, Ireland and the IAVI both stand at a crossroads. However, this Institute is not like our country. It is not in a mess. It is strong and vibrant and, most importantly, has valuable assets and no borrowings. The manner in which the IAVI has been run is almost the antithesis of the way Ireland Inc. has been run in recent times,” he said.
Outgoing President of the Irish Auctioneers and Valuers Institute, Aine Myler, hands over the chain of office to Kersten Mehel, who is the Institute’s newly appointed president.
