Dáil Éireann Debate, Tuesday - 5 February 2013
590. Deputy John Lyons asked the Minister for the Environment, Community and Local Government his views on whether local authorities should have the ability to adjust commercial rates to support planning policy; if he will detail the legislative changes that would be required to allow for such changes; and if he will make a statement on the matter. [5790/13]
View answerLocal authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority. The annual rate on valuation (ARV), which is applied to the valuation of each property determined by the Valuation Office, to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function.
I am acutely aware of the pressures on small and medium sized businesses at the present time. Local authorities have been asked by my Department, by way of a circular letter, to exercise restraint or, where possible, reduce commercial rates and local charges for 2013. Local authorities have responded well to such requests in recent years.
Development contribution schemes were first introduced in 2000 and, together with Exchequer funding and local authorities’ own resources, have played a significant role in the delivery of infrastructure that has supported development. With the Minister of State for Housing and Planning, Deputy Jan O’Sullivan, I published new Development Contribution Guidelines on 21 January 2012. The new guidelines build on the experience gained in recent years and also align development contribution policy with the Government’s prioritisation of employment creation, investment and sustainable development.
Above all, the guidelines are intended to support proper planning and sustainable development while also prioritising job creation and economic investment. Key features of the new guidance include:
- A requirement that development contribution schemes appropriately promote the development of areas prioritised in core strategies;
- Reduced rates or waivers for certain categories of development;
- A standard methodology for all planning authorities to follow in the preparation of development contribution schemes; and,
- Measures to support new or existing enterprises through, for example, reduced development contribution rates, deferral payments, etc.
The guidelines issued under section 28 of the Planning and Development Act 2000 - 2012. This means that planning authorities and An Bord Pleanála are required to have regard to the guidelines in performance of their functions under the Planning Acts.
I will continue to keep the approach to rates by local authorities under active review, and am determined that every avenue will be pursued to optimise efficiency and contain costs in the local government sector.
