Dáil Éireann Debate, Tuesday - 19 January 2010
842 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government the legal or competition impediments for local authorities who might wish to waive council business rates or offer a percentage rebate for new businesses for a defined time period; and if he will make a statement on the matter. [1491/10]
View answer881 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government further to Parliamentary Question No. 437 of 24 November 2009, if the Local Authority (Rates) Act 1970 is superseded by the Valuation Act 2001; if there is any legal impediment for local authorities who might wish to waive council business rates or offer a percentage rebate for new businesses for a defined time period; and if he will make a statement on the matter. [1492/10]
View answerI propose to take Questions Nos. 842 and 881 together.
The Local Government (Rates) Act 1970, rather than the Valuation Act 2001, is the relevant piece of legislation in relation to rates waiver schemes. Under the provisions of the Local Government (Rates) Act 1970, a rating authority may make and carry out a scheme providing for the waiver by the authority of all or a portion of commercial rates due by ratepayers generally or a class of ratepayers in respect of a specified class or classes of property. The making of such a scheme is subject to the consent of the Minister for the Environment, Heritage and Local Government.
Any application received for a rate waiver scheme is carefully considered by me. However, in considering any such application it would have to be borne in mind that a waiver of rates for one class of ratepayer could unfairly impact on existing businesses in the area by giving a competitive advantage to a certain group through a reduction of costs. In addition, the introduction of a waiver scheme could further increase costs on the part of businesses who are not part of the scheme, as they would be required to make up the cost of the waiver scheme through the payment of additional rates. This could impose an additional burden in what are already difficult economic circumstances.
