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Dáil Éireann debate -
Tuesday, 26 Nov 1996

Vol. 472 No. 1

Written Answers. - Accommodation Costs.

Pat the Cope Gallagher

Question:

64 Mr. Gallagher (Donegal South-West) asked the Minister for Tourism and Trade the amount of the increase in the costs of bed and breakfast accommodation if the proposals in a recent Government report to extend the commercial rates base to all forms of visitor accommodation were implemented. [22000/96]

The Minister has been advised by the Department of Finance that if, for example, a bed and breakfast operation were to be made liable to commercial rates, the relevant rate would be applied to the rateable valuation in respect of the property, or element of the property, used for the operation. The rateable valuation of an individual property is determined by reference to its net annual value, in this case, its net annual rent. The interaction of the rate in the pound for the rating district in which a bed and breakfast was located with the rateable valuation for the same bed and breakfast operation would determine its rates liability.

It is not possible to estimate impact on accommodation costs if all forms of accommodation were made subject to commercial rates as proposed in the report referred to, because there are too many other variables — for example, quantum of rate bills, competitive and market forces etc. — to be considered to allow for any form of reliable estimate to be made at this stage.

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