Vol. 373 No. 9
asked the Minister for Finance the total rateable valuation of ESB properties; the total amount due for rates by the ESB in 1986; the actual amount paid by the ESB; if that amount was calculated in accordance with normal commercial valuation practices; and if he will make a statement on the matter.
36.
asked the Minister for Finance the plans, if any, he has for the valuation of ESB property for rating purposes; and whether he accepts the reported claim that rates on their property would rightfully yield £16 million less than the levy being collected.
I propose to take Questions Nos. 11 and 36 together. I would like, first, to explain that I have no function in determining valuations of property for rating purposes. This is a matter for the Commissioner of Valuation who has statutory independence in this regard.
However, I can give certain general information regarding the matters raised. There are two categories of property to be looked at in this context. The first is that category of property on which the ESB actually pay rates to individual local authorities, that is, mainly showrooms, offices and stores, which are valued in the normal way. I understand that the total of rates paid to local authorities under this heading is in the region of £3 million.
The second category is the generating and transmission property which, under the Electricity Supply Acts, 1927 to 1981, are exempt from rates. It was in relation to the second category of property that the Electricity Supply Amendment Act, 1982 provided that the ESB should make an annual payment to the Minister for the Environment. For 1986 the amount determined to be due was £24 million, and this has now been paid. This contribution — and earlier contributions — was determined by the Government in the light of advice from the Commissioner of Valuation. I am satisfied that the contributions paid by the ESB were not excessive.
In conclusion, I would like to assure the House that I am anxious that the contributions payable by the ESB in lieu of rates be put on a more formal basis. I hope to bring proposals before the Government in this area shortly.
The figure of £24 million for generating and transmission plant which is exempt from rates but is charged on the basis of an annual levy seems to have no connection whatever with the figure that would more appropriately be paid if these properties were rated in the normal commercial way, or if the rates bill were calculated in the normal way for properties generally. I understand that the figure of £24 million is approximately one-seventh of the total amount of money collected nationally for rates and properties. This is clearly excessive and is undoubtedly a major reason for electricity costs being the highest in Europe, particularly for industry. ]Will the Minister recognise it has no relationship at all with property rates generally and is a very severe burden on the ESB? It is adding greatly to the cost of electricity for the ESB. In consequence, will he not consider reducing that amount drastically?
I do not accept either of the points made by the Deputy. I have tried to be as helpful as I can in so far as my responsibility goes. The questions of how rateable valuations are done or what they are, are matters for the Commissioner for Valuation who is statutorily independent. The contribution in lieu of the rates paid by the ESB is paid to the Minister for the Environment and the Minister for Energy has responsibility for the ESB and the governing legislation. What is being done at the moment is being done under the 1982 legislation. The contribution in lieu of rates has very, very little to do with the cost of electricity.
(Limerick East): The Minister has given us the amount of the annual levy collected in 1986. Will he inform the House what he had budgeted for the annual levy for 1987 and when does he expect that to be paid by the ESB to the Department of the Environment?
For 1986, as the Deputy says, the amount was £24 million. As the Deputy is probably aware, £16 million of that was paid only in 1987. For 1987 it will be around the same amount, £24 million.
(Limerick East): When do the Government expect to get that?
Now.
(Limerick East): In 1988?
No, we expect to get it this year, in the same way as we had to collect the £16 million the previous Government left uncollected last year.
(Limerick East): In this tax year or in this calendar year?
This year.
(Limerick East): That is very hard to define at the moment.
Going back to my first question, would the Minister agree that what has happened is that the Government's payments to local authorities in lieu of rates have been reduced this year and that the ESB consumers are now making up the difference by paying more this year to local authorities indirectly through the Minister for the Environment and that tax is effectively being levied through the ESB bill on ordinary consumers to make up the difference.
I gather from the Deputy that he is more concerned about the ESB than about the consumers but I do not accept anything that he has said.
