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.