The Finance Minister says the only alternative to a property tax would be deep cuts in public services, or income tax hikes.

He says homeowners who dodged the €100 household charge will have to pay it when the property tax is introduced.

Michael Noonan says the Revenue Commissioners will have new powers to take the property tax and any unpaid household charge from wages, social welfare payments and farm grants.

He made the remarks as he introduced new legislation to the Dáil which will bring in the property tax next July.

The Bill itself will be debated later in the Dail.

Opposition vow to oppose charge

Opposition parties are opposing the tax claiming it is unaffordable for homeowners who are already in arrears.

Michael McGrath of Fianna Fail says his party will oppose the tax and the new powers being given to Revenue to collect it.

"Some of the powers extended to the Revenue by the way of this Bill are draconian" he said.

"People who are in receipt of social welfare as their sole means of financial support could well have an undefined amount deducted form their social welfare payment" he added.

But Minister Noonan says the government has to introduce the tax under the terms of the EU-IMF agreement.