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Dáil Éireann debate -
Thursday, 4 Jul 1963

Vol. 204 No. 3

Committee on Finance. - Local Government (Temporary Reduction of Valuation) Bill, 1963 [Seanad]: Second and Subsequent Stages.

I move that the Bill be now read a Second Time. The purpose of the Bill is to extend up to 31st March, 1966, the period in which the erection, enlargement or improvement of buildings may be completed in order to qualify for a rates remission under the Local Government (Temporary Reduction of Valuation) Acts 1954 to 1960. The Bill will also extend for the same period of three years the time within which farm buildings may be built or improved in order to qualify for the 20 year rates remission under the 1960 Act.

The parent Act—the Local Government (Temporary Reduction of Valuation) Act, 1954—gave a two-thirds remission of rates for seven years on the valuations of new buildings and on the increased valuations of existing buildings that were enlarged or improved on or before the 26th July, 1956. The remission applied to the total increase, including any increase attributable to previous improvements taken into account in the course of the revaluation. The completion date for works to qualify for the rates remission was extended up to the 31st March, 1963, by amending Acts passed in 1956 and 1960. The rates remission so provided applies to all buildings such as offices, factories, shops, houses, hotels, etc., which do not qualify for a remission under any other statute. Paragraph (b) of section 1 of the Bill has been included to provide that buildings which obtain a rates remission under the Local Government (Sanitary Services) Act, 1962, will not be entitled to an additional remission under the Acts now being extended.

Section 14 of the Valuation (Ireland) Act, 1852, granted an exemption from rates for a period of seven years in respect of the erection, enlargement or improvement of farm outhouses and outoffice buildings. In view of the steps being taken by many farmers to effect necessary improvements in their farm buildings, particularly in connection with the bovine tuberculosis eradication scheme, it was felt that there was a case for making a more generous concession in relation to the rating of these buildings. For this reason, the Local Government (Temporary Reduction of Valuation) Act, 1960, extended the period of rates remission in respect of farm buildings from seven to 20 years. This extended remission was related to buildings built or improved between the 1st April, 1960, and the 31st March, 1963. Since the longer rates remission was introduced, the numbers and amounts of the grants paid under the Department of Agriculture Farm Buildings Scheme have increased substantially and a big volume of construction work on farm buildings is now in progress. The period for the completion of these buildings in order to qualify for the 20 year rates remission is accordingly being extended by section 2 of the present Bill up to the 31st March, 1966.

Rates remissions under Local Government Acts have been operative in one form or another since the 1st April, 1920, and have generally been regarded as an effective encouragement of constructional development. It is considered that the existing concessions in this regard should now be continued for a further period and this is proposed by section 1 of the Bill.

While I have no doubt that the provisions of this Bill will be welcomed by the House, nevertheless I should point out that it covers only one aspect of the complex structure of Local Government finance. The whole question of local taxation and finance is being methodically reviewed at present and it is possible that in due course the examination may bring about changes in rating law, both generally and especially in regard to remissions of and exemptions from rates. The completion of the investigations and the consideration of the findings will necessarily take some time. Meantime, it would I think be undesirable to make any drastic alteration in existing rating practices. For this reason the present Bill proposes to maintain the existing position in relation to an important body of rates remissions for a limited period within which the general issue of such rating concessions can be examined.

This is certainly a desirable measure. The Minister, in the concluding paragraphs of his speech, mentioned why he is dealing with this on a temporary basis. On a previous occasion, he told the House that this review was taking place in regard to the whole question of rating and valuation. That is most desirable. Questions were recently asked in the House about the effect on valuation and rates of improvements to buildings, but that is something we can deal with again. The provisions of this Bill should encourage improvement of facilities on rural holdings. I should hope the Minister will not find it necessary to come back again with a temporary measure and that instead he will have something more permanent by the time the provisions of this measure expire. I hope the review is being actively pursued in his Department and any other Department concerned.

We have no objection to this measure as we think it desirable to encourage modernisation and improvement of dwellings by giving this type of remission, particularly to people on the land.

In reply to Deputy Jones, all I can say is that I also hope that during the currency of these temporary remissions and arrangements, it will be possible to arrive at some more comprehensive rearrangement of the local taxation basis. The Economic Research Institute, as the House is aware, have been considering this and, in fact, they did furnish us with an interim report. We are awaiting further reports from them and in addition, my Department and I have been working on this matter for the past couple of years. That should lead to the establishment of a basis on which we would hope to obtain a new deal on the whole question of local finance. Just how long it may take, I do not know. I can only hope, with Deputy Jones, that it can be done within the currency of this temporary measure, which is three years. I would not go further than that.

Question put and agreed to.
Agreed to take remaining Stages today.
Bill put through Committee, reported without amendment, received for final consideration and passed.
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