Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 9 Mar 1950

Vol. 119 No. 11

Adjournment Debate—Valuation and Rating System.

To-day at Question Time I asked the Minister if, in view of the high level of rates and of the increasing valuations, he would be prepared to set up a commission of inquiry into the whole system of rates and valuations. To my amazement, the Minister replied:—

"I am satisfied that the existing valuation and rating system is, on the whole, satisfactory and that no useful purpose would be served by the setting up of a commission of inquiry as suggested by the Deputy. The answer to his-question is, therefore, ‘no'."

I do not think anyone could be satisfied with that reply. Nor will people be satisfied with that rather Molotovish view. The whole case for the setting up of an investigation into this matter rests upon the fact that the rates are exceedingly high and have been steadily rising over a number of years while, at the same time, valuations have shown a marked tendency to increase as far as buildings and hereditaments of that kind are concerned. I am sure the Minister will not deny that rates are high. I do not know how he can claim that the present position is satisfactory. Every section of the community is complaining about the high rates. Even prominent Churchmen have seen fit to compare the rack rents of the present day with the rack rents of the past.

I have nothing to do with rates.

I am allowing the Deputy to proceed a little way in order to discover along what lines he will develop his case.

The question asked to-day was—

"whether the Minister will arrange to have considered the desirability of setting up a commission of inquiry with a six month's time limit to investigate the entire system of poor law valuation and the incidence of rates on property."

The Deputy understands that the subject matter of the question is whether the Minister will consider the desirability of setting up a commission of inquiry.

But the entire case for the setting up of that commission rests on the fact that rates are too high.

Clearly, we cannot go into that on this particular matter. The case the Deputy has to make is the desirability of setting up a commission to investigate that.

If I am to be confined to advocating the setting up of a commission to inquire into the problem of rates and valuations, without at the same time referring to them, I am afraid I shall have to keep the discussion within very, very narrow limits.

I am afraid the Deputy will.

I am, therefore, confined to discussing whether or not a commission of inquiry can serve any useful purpose. I take it I am in order in discussing that particular aspect.

I have given the Deputy as much latitude as I can. The question is the desirability of setting up a commission of inquiry.

I suggest that such a commission is desirable in this particular instance. I am an independent farmer Deputy who has never been too closely identified with any particular Government. I have never been enthusiastic about commissions. They are regarded for the most part as a means of shelving awkward problems. But in this particular instance the problem is so wide and there are so many issues involved, it is essential there should be an investigation. Within the past few months cases have been brought to my notice where valuations have been increased by 300 per cent. In one particular instance the valuation of a business premises in this city was increased in the past few weeks from £60 to £200 simply because some painting and decorating had been carried out on the particular premises. In another instance the valuation was increased from £70 to £170. That was a very remarkable increase in valuation. That is an increase of 100 per cent. It would not appear to indicate very extensive investigation of detail. In one particular town with which I am familiar practically every house was revalued within the last year and valuations were increased in many cases by 300 per cent.

These increases seem to indicate that there is a general drive towards increasing valuations. I do not know why that should be at the present time. One would imagine that rates are sufficiently high without forcing up valuation at the same time. There is a neck-to-neck race between rates and valuation. If the Minister will consider the matter he will see that there is a very strong case for investigation. For the past 100 years there has been no inquiry into rating. The legislation which governs rating is over 100 years old. In the course of that period a wide variation in practice has taken place in regard to assessing valuations. I assume that the Minister may say in reply that valuations generally are not as high as they might be under existing legislation and that the valuation officials are behaving very generously towards the ratepayers.

That raises a good many questions. It raises the question as to how the valuation authorities act and who initiates proceedings for increasing valuations. We know that if a local authority cares to close its eyes a ratepayer may escape an increase in his valuation. That raises the question then as to whether pressure or inducements may be brought to bear on officials to close their eyes to improvements that are carried out.

We know that the rating authorities can institute proceedings to have valuations increased where no improvements have been carried out at all. They can revise valuations from year to year. When we consider the disparity between the valuation of one particular type of property and another and the disparity between one particular premises and another, we must see that there is need for investigation of the whole matter. I know one particular case in which a ratepayer built two identical houses side by side. He let one of them at a rent and a valuation was fixed upon it. Before he had the other ready—he required it for himself — it was inspected. The premises which he had let and which were completely finished were assessed at a lower valuation than that imposed on the premises which were not fully completed although the two were of the same size. There was a disparity of £10 between the two valuations. How can the Minister account for the haphazard manner in which valuations are fixed? Surely there is need for an inquiry into this whole matter? Of course, it would be absolutely foolish to set up a commission of inquiry to deal only with the question of valuation.

The whole system under which local authorities act would need to be investigated. The whole system under which services are allocated as between the local authorities and the central authority would need to be investigated. The whole system under which grants are made available to local authorities and under which they are allocated would also need to be investigated, so that the citizens of this country would be in a position to put up a case against the injustices being inflicted upon them.

We know that the burden on the ratepayers has increased very considerably in the past ten years. We know that the Minister and his officials might make the case that there is nothing strange about that since costs generally have increased. Why is it then that the ratepayers are feeling so aggrieved? The answer is that the middle classes of this country are being completely crushed by rising costs. That, I think, is the real reason why there has been so much discontent and why there is a growing discontent in regard to the burdens imposed on ratepayers generally. Therefore, I think the Minister—although his "no" to my question to-day had a slightly Molotovish flavour—ought to consider this whole matter.

I do not believe in long-sitting commissions. I would be inclined to put a time limit upon a commission appointed in this connection. I believe that a commission composed of earnest people who are prepared to go into this matter fully would be able to give the Minister a comprehensive report within six months or nine months at the most so that before the next financial year he would be in a position to have the whole situation reconsidered. Let it be clearly understood that no investigation designed to bring about a general increase in valuation would be either desirable or possible. If we want to equalise valuations we must equalise them by reducing them to the level of the lowest valued property. Any general increase in valuations would act as an incentive to local authorities to raise the rate, since the rate in the £ would be reduced by higher valuations. Therefore, I think the first task of this commission would be to suggest ways and means by which the whole standard of valuations could be reduced and stabilised. I think stabilisation is very important. It is no inducement to the progressive farmer or to the progressive business man to improve his buildings if he knows that in the course of a few years, or even of a few months in some cases, his valuation will be increased and his rates increased accordingly. The minister will be doing very useful work and work which will be appreciated by the ratepaying community generally if he causes a public and comprehensive inquiry to he held into the whole system of rates, local expenditure and valuations.

That, I think, is the demand which is embodied in my question and it is a demand which the Minister ought to reconsider.

I was asked to-day by Deputy Cogan whether I would arrange to have considered the desirability of setting up a commission of inquiry with a six months' time limit to investigate the entire system of Poor Law Valuation and the incidence of rates on property. I replied, "I am satisfied that the existing valuation and rating system is, on the whole, satisfactory and that no useful purpose would be served by the setting up of a commission of inquiry as suggested by the Deputy", and that the answer, therefore, was "no".

The Deputy was not pleased with that reply and he has raised the matter again to-night. It is sufficient answer to him now that he has found only one ordinary member of the House to sit in and listen to his plea. I am here because I have to listen to him. Out of the whole membership of Dáil Éireann there is the Deputy himself and one other member, who may or may not be interested in this request for a commission. That is the volume of support he has in this House.

In this House, but there are a lot outside.

The Deputy will realise before long that this is not a very good move on his part. If I were to do what he has asked me to do one of the first things they might easily decide to do would be to see whether farmers' property, land, could not be rated and could not be rated beyond the old Griffith valuation which is the standard in operation at the moment. There are quite a number of people who think that equity demands that.

When that time comes the Deputy can look back to this night and remember that he led the movement for that. I think that quite a number of people in this House might be interested in the problem of valuation but that they have avoided taking action similar to that which the Deputy has taken to-night because they felt that a natural result of the establishment of a commission would be that farmers' property would be brought under the microscope. The Deputy might not be so popular with the group from whom he is now seeking popularity if that were the result.

I feel that another reason why other Deputies have not taken action similar to that which Deputy Cogan has taken is that a lot of them are members of local authorities and that they are all quite conscious of the fact that it is the local authority who has control over valuation. They realise that no increase in valuation can take place unless the rate collector starts the business. Then, and not until then, the local authority takes action. I think the Deputy is a bit confused with regard to the system of valuation.

Suppose I were able to reduce valuations on my own and that I took a big step and brought about a reduction of, say, half all over the country, does the Deputy think that would make any difference? The rates would be doubled. The same amount of money must be collected and if valuations were reduced all over the country, the net effect would be that you would have a phenomenal increase, an increase of perhaps 100 per cent., in the rates to be struck. There is nothing to be gained by that. I know that there have been anomalies and that there are anomalies in connection with valuation. Certain premises have been valued and revalued while there are certain other premises which should be revalued and which have not been revalued. If there is any lack of uniformity in that respect, it is entirely due to the local authorities who have not taken the necessary steps to have properties that should be revalued put in train for revaluation.

As to the discontent about the present system of valuation, the Deputy has given me instances of a couple of cases in which properties have been revalued upwards. He forgot to tell me whether the people whose premises had been revalued had exercised the right of appeal which they have to the courts.

They did.

And the new valuation was established?

It must have been a fair valuation then when the courts stood over it. I take one case. I have a few more examples that might be spoken of but I take one case that was put to me as one of the hardest hit rating areas, so far as revaluation was concerned. There were 1,400 revisions carried out in that area. In nearly all cases, with minor exceptions, the revisions were upwards and 56 ratepayers decided to appeal to the commissioner. Most of these appeals were rejected but only two people went to the Circuit Court. In the end, only two people out of 1,400 thought they had a sufficient case to go to the Circuit Court. I do not consider that the fact that only two people out of 1,400 exercised their right of appeal to the Circuit Court argues any great discontent with-the system. I am content to let the present system alone.

The Dáil adjourned at 10.55 p.m. until Tuesday, 14th March, at 3 p.m.

Top
Share